碳核算软件报告：计算重要的事情（英文版）

GP.Bullhound

MARCH2024

Carbonaccounting

software

Countingwhatmatters

Thisreportisintendedforprofessionalinvestorsonly;seethebackofthereportforimportantdisclosures.GPBullhound

CorporateFinanceLtdandGPBulthoundAssetManagementlimitedareauthorisedandregulatedbytheFinancialConduct

Authority.GPBullhoundIncisamemberofFINRA.GPBullhoundLuxembourgS.a.r.l.isregulatedbythecSSFinLuxembourg.

2

GP.Bullhound

3

Contents

04THEVIEWFROM

GPBULLHOUND

Thebusinessimperativefor

climateaccountability

05CHAPTER1

08

CHAPTER2

Fromactivitiestoemissions:

thecarbonaccountingprocess

13CHAPTER3

Carbonaccountingsoftware,

atyourservice

15CHAPTER4

Increasedautomationiscrucial

forwideradoption

21CHAPTER5

Marketpotentialdrivenbynext-generationcarbonaccountingtechnologies

23AUTHOR

24ABOUTGPBULLHOUND

25DISCLAIMER

GP.Bullhound

4THEVIEWFROMGPBULLHOUND

Theview

FROMGPBULLHOUND

Toachievetheambitiousglobalgoalofnetzeroby2050,human-causedCO2emissionsmust

decreasebyapproximately43%from2019levelsby2030.Thetransitiontodecarbonisingour

economyiscomplexand,inthebuzzofitall,it

remainsinevitablethatweareenteringaneweraofexpectationsforbusinessleaders.

Inthisreport,wearenotfocusingonclimate

action,butonclimateaccountability.Toachievereal,systematicchange,weneedcompaniestoadaptanewmodusoperandi,wherethebaselineistotakeintoaccount,andtransparentlyreport,theirimpactontheplanet.

GP.Bullhound

5

CHAPTER1

Thebusinessimperativefor

climateaccountability

Adaptingtoanewbusiness-as-usual

GP.Bullhound

6CHAPTER1THEBUSINESSIMPERATIVEFOR

CLIMATEACCOUNTABILITY

Thefirststeptowardsaccountabilityistorecognisethestatusquo.Whatisthecarbon

footprintofabusiness'sactivitiesandsubsequentimpactontheclimate?Bymapping

activitiesandtheemissionsrelatedtothem,businessescancalculatetheircarbonfootprintandunderstandwhatcategoriesthemajorityofemissionscomefrom.

Byreporting-andcommunicating-theresult,stakeholdersshouldbeabletoseewhatclimateimpactthebusinessisaccountablefor.

CARBONF00TPRINTBREAKDOWNBYCATEGORY,READYTOBEREPORTED

Carbonfootprint

GrOssemissionsbycategoryGrossemissionsovertime

●Goods&Services

Offices

●Marketing

●Cloud

●Employees

●Travel

Goods&Services177,204tCO₂e

Aocounting&LegalIT

Insurance

PersonnelCosts

97,588

21,739

10,074

4,094

Chooseyourreports

TCFD

TCFD

TaskforceonClimate-RelatedFinancialDisclosuree

SECR

WatershedCarbonReporting

Fullscope1-3emissionsforgeneral

SECR

StreamlinedEnergyandCarbon

CDP

CarbonDisclosureProject

HCDP

Source:Watershed

GP.Bullhound

THEBUSINESSIMPERATIVEFORCHAPTER17

CLIMATEACCOUNTABILITY

Thedataretrievedinthiscarbonaccountingprocessisinturnthefoundationfortargets,forecasts,andeffectivereductioninitiatives.

Asamoreholisticviewonimpactandvaluecreationarebeingforcedintoreportingbyregulators,businessesarestartingtopaycloserattentiontotheircarbonfootprints.

TheEuropeanUnion'sCorporateSustainabilityReportingDirective(CSRD)willrequire

carbonmeasurementstobeincorporatedinthefinancialstatementsandwassettoreshapereportingpracticesforapproximately50,000EUcompaniesalreadyin2023.ThediscussionsarealsoadvancingintheUnitedStatesundertheTaskForceonClimate-relatedFinancial

Disclosures(TFCFD),increasingregulatorypressureonclimatereportingfromnowon.

01Adaptingtoanewbusiness-as-usual

Companieswillneedreliable,scalableandeasy-to-usecarbonmeasurementsolutionstomeetthisshift.ArecentstudybyBCG,whichincluded1,600enterprisesthat,inaggregate,areresponsibleforover40%ofglobalemissions,revealedthatamere10%ofthe

companiesmeasuredtheircompleteemissionfootprintin2022.Moreover,87%wantedtoexpandtheirreportingscope,providedtheyhavebetterdigitaltools.

Whetherthemotivationistocomplywithregulationsorreducecarbonfootprint,everythingpointstowardscarbonaccountingsoftwarebecomingjustasvitalforbusinessesasthe

implementationofAWSoraCRMsystem.

However,thecurrentlowadoptionsuggeststhatthemarketisstillinitsearlystages,andwehavejustseentheemergenceofthefirstgenerationofsoftwareplayers.Whichtechnologicaldevelopmentsdoweneedtoincreasetheusabilityofcarbonaccountingandreachastateoffullclimateaccountability?

GP.Bullhound

8CHAPTER2

Fromactivitiestoemissions:

thecarbonaccountingprocess

High-complexityhurdlesputpressureonresourcesandtime

GP.Bullhound

FROMACTIVITIESTOEMISSIONS:CHAPTER29

THECARBONACCOUNTINGPROCESS

Likefinancialaccounting,carbonaccountingquantifiestheimpactofanorganisation'sactivities-thoughinsteadofnumbers,ittracksandreportsemissionunits.

Carbonaccountingisthesystematicmethodologies,measurementandmonitoringofhowmuchgreenhousegases(GHG)areemittedbyabusiness.Theprocesscanbesplitintofivestages.Astheoperationalapplicabilityofemissioncalculationsevolves,itemergesintoadynamicloopratherthanastaticline.

VISUALISATIONOFTHECARBONACCOUNTINGPROCESS,FROMMAPPINGACTIVITIESTOREPORTINGRESULTS

Reporting&action

Targetsetting

Spenddata

Howmuch

spentona

purchasedgood

orservice

Activitydata

Amountof

aparticular

productor

material

Conversionfactors

Converting

dataintounitofmeasurement

Communication&branding

Emission

factors

Translating

dataintoGHG

emissions

Spend-based

emission

factorsare

typicallybuilt

onindustry

averages

Activity-based

emission

factorsare

oftentaken

fromscientific

studiesandare

Activitymapping

Internationalcompany

activities

Scope1

Emissionfootprint

Theresultwill

beanestimate

ofthetotal

greenhouse

gasemissions

resultingfrom

anorganisation's

activities

Thequality

oftheresult

willdepend

onthedata

andemission

factorsused

Supplychain

andenergy

activities

Scope2Scope3

Regulatory

requirement

reporting

Datacollection

&processing

Reductioninitiatives

moregranular

Calculation

Results

Source:Nomative,GPBulhoundInsights

1.Activitymapping:Tobeginwith,oversightofallthebusiness'sactivitiesandthedata

availableisneeded.Dependingonthestandardsthebusinessneedstocomplywith,

specificdatatypesmightberequired.Accountingforinternaloperationsisinsufficienttocalculateabusiness'stotalcarbonfootprint(Scope1).Indirectemissionsfromgoodsandservicespurchasedfromsuppliersmustalsobeconsidered(Scope2-3).Infact,90%ofabusiness'scarbonfootprintcomesfromindirectemissions.

GP.Bullhound

10CHAPTER2FROMACTIVITIESTOEMISSIONS:THE

CARBONACCOUNTINGPROCESS

2.Datacollectionandprocessing:Thedatashouldhelpdeterminetheactivities'size,scopeornature.Bothspendingandactivity(e.gunits)measurementsshouldbe

used.Forexample,businesstraveldatacanbecollectedby1)thenumberofflights,kilometres,orfuelusedor2)theamountspentonairtravelforthecompany.

Then,thedataneedstobeprocessedintoanapplicableformat.Ifyoumeasureenergyusageinonespecificunit,butemissionfactorsarebasedonkWh(seebelow),thedatamustbeconvertedtokWhunits.

3.Calculation:Aftercollectingandprocessingdata,youapplyanemissionsfactortotranslateittocarbonemissions.Thecalculationsareperformedwithdifferentmethodologiesdependingonwhatdatayouhave-spendingoractivity.Ahybridmethodologycombinesboth.

Theactivity-basedmethodusesunit-leveldatainvolvedinproducingor

consumingaparticularproduct,materialorservice,andmultipliesitbyan

emissionsfactor-theamountofemissionsproducedbyconsumingthatunit.

Thefactorsareoftentakenfromscientificstudieslinkedtothatspecificmaterialoractivity.

Activitydatagenerallyallowsformoreaccurateemissionsestimatesthanspend-baseddata,butit'snotasavailableandismoretime-consumingandcomplextogather.Inparticular,itwillbedifficulttogatherforindirectandScope3emissions.

Example:Ifyoumanufacturechairs,anactivity-basedapproachcouldfactorinhowmanykilogramsofsteelandothermaterialsareused,andwheretheseinputfactorscomefrom,toprovideacarbonfootprintspecifictoyourproduct.

Thespend-basedmethodtakesthefinancialvalueofapurchasedgoodorserviceinstead,andmultipliesitbyanemissionsfactor-theamountofemissionsproducedperfinancialunit.

Spend-basedemissionfactorsaretypicallyderivedfromenvironmentally

extendedinput-output(EEIO)modelsthatdepicttheflowofresourcesbetweendifferentsectorsoftheeconomy.Basedonthis,onecancalculatetheaverageamountofemissionsassociatedwitheachunitofmoneypaidinaspecific

industryandregion.

Sincespend-basedmethods'emissionfactorsarebuiltonindustryaverages,thecalculationscanlackspecificityandareoftennotseenasthepreferredmethodology.

Example:Aspend-basedapproachwouldgenerallyfactorinthatyouproduceachair,andwouldn'taccountforwhetherthechairwasmadeofironorwood,orifitwastransportedfromChinaortheUS.

Source:Normative.io

GP.Bullhound

FROMACTIVITIESTOEMISSIONS:CHAPTER211

THECARBONACCOUNTINGPROCESS

4.Results:Themainoutputfromcarbonaccountingistheestimateofanentity's

emissionsfootprint.Theaccuracyofthisestimatewilldependonthequalityofdatainputted,andtheprecisionoftheemissionsfactorsused.However,itisimportanttonotethataroughestimationwillstillhelptogetabetterunderstandingofyour

emissionsfootprint.

5.Reportingandaction:Theresultscanbeusedinmultipleways.Foremost,through

thefinalreportingofabusiness'scarbonfootprint,regulatoryrequirementsand

newdemandsfromstakeholderswillbemet.Withconditionssuchastransparency

andreliability,therewillultimatelybeasystemholdingbusinessesaccountablefor

animportantpartoftheirclimateimpact.Furthermore,theemissionsdatacreates

opportunitiesforactionandplanetaryimpact,asitenablestheidentificationofeffectivetargetsandstrategiesforemissionreductions.

FACILITATINGACTIONSFORCOMPANIES

202020252030

BASELINEEMISSIONS■HISTORICALEMISSIONS■BUSINESS-AS-USUALFORECAST

■FORECASTWITHINITIATIVES■TARGET■CARBONREMOVAL0NETEMISSIONS

Source:Watershed

GP.Bullhound

12CHAPTER2FROMACTIVITIESTOEMISSIONS:THECARBONACCOUNTINGPROCESS

01High-complexityhurdlesputpressureonresourcesandtime

Theemissionscalculationisnotthemostcomplicatedpartfromacustomer'sperspective.Thestepofderivingthedatathatcomesbeforeiswhatmakescarbonaccountingcomplexandtime-consuming.

Inparticular,thecomplexityoccursin:

·Activitymapping:Identifyingalltheactivitiesthebusinessisengagedin-internallyandacrossthesupplychain-andwheredataisavailableistime-consumingandafirstmanualhurdle.

·Datacollection&processing:Collectingdatainnon-standardisedandnon-digitalformatsfromallrelevantsources,oftenrequiringmanualprocessingandcalculationingestion.

ILLUSTRATIONOFTHELEVELOFCOMPLEXITYANDTIMEREQUIREDINTHECARBONACCOUNTINGPROCESS

Levelofcomplexityandtimespent

柴

Datacollection

&processing

■HIGH■MEDIUMLOW

Reporting&action

Activitymapping

Calculation

Results

Souroe:GPBullhoundInsights

Withthiscomplexityinmind,carbonaccountingisalsoanewexerciseformanycompanies.And,whenincorporatinganewinternalbottomlineandreportingittostakeholders,

companieswanttogetthings-justabout-right.Afirststepingettingeducatedabouttheprocessandhowtothinkabouttheunderlyingdataisrequired.

Duetothefactorsabove,sustainabilityconsultantsandlegacycarbonaccountingprovidershavehistoricallyprovidedcustomisedservices,guidingcustomersthroughthisprocessorperformingfullyoutsourcedwork.

GP.Bullhound

13

CHAPTER3

Carbonaccountingsoftware,

atyourservice

GP.Bullhound

14CHAPTER3CARBONACCOUNTING

SOFTWARE,ATYOURSERVICE

WiththetailwindsofincreasedESGfocusandaspiringtohelpbusinessesautomatethe

complexprocessoutlinedabove,carbonaccountingsoftwareraisedaround$400mincapitalin2021and$970min2022.

Cloud-baseddigitalplatformsthatarestartingtousemachinelearningandAItocalculateemissionsandperformanalyticshavebeenpivotalandvitalshiftsinthemarket.Apartfromtheobviousbenefitsofgoingfrommanualprocessesandspreadsheetstoadigitalplatform,softwareprovidershavemadecarbonaccountingmorebroadlyaccessible,dynamicand

compliant.

Whilethesedevelopmentshavemajorbenefitsfortheapplicationsofcarbonaccounting,

customersstillneedsupportinitscurrentstate.Carbonaccountingsoftwareusersspend

75%oftheirtimemappingbusinessactivitiesandtherightdatainputsonaverage.Customerandexpertinterviewsshowthatoneofthemostdeterminingfactorsforbusinesseswhen

selectingcarbonaccountingprovidersisthelevelofmanualsupportandstrategicservicesthroughthedatacollectionstagesandbeyond.

MOVINGTOWARDSFULLDIGITALISATION:

WEHAVEREACHEDTHESTATEOFDIGITAL-FIRSTCARBONACCOUNTINGSERVICES

SHAREOFCARBONACCOUNTINGPROCESSCOMPOSITION

Source:GPBullhoundInsights

Conclusively,carbonaccountingsoftwareprovidershavedrivensignificantdigitalisationtotheprocess,butarestillhighlyreliantonincludingorcombiningmanualserviceswiththeirofferings.

Nevertheless,thecurrentcarbonaccountingsoftwareprovidersaretheonespavingthewaytowardstheneweraofbusiness-as-usual,andwehaveonlyjustexperiencedthefirstgenerationofinnovators.

Source:Sifted,Trends.co

GP.Bullhound

15

CHAPTER4

Increasedautomationiscrucialforwideradoption

Keyhurdlesforautomationofactivitydata

collectionandprocessing

Infrastructurethatsolvesfordata

GP.Bullhound

16CHAPTER4INCREASEDAUTOMATIONIS

CRUCIALFORWIDERADOPTION

Regardlessofexpectedregulations,themajorityofcompaniesarenotdedicatingthetimeandresourcescurrentlyneededtoperformreliablecarbonaccounting.Increasedautomationwilldecreasethecomplexityandbevitaltoacontinuedadoptionof

emissionsreporting.

Intime,itisalsoanimportantdriverforclimateefforts.AstudybyBCGrevealsthat

organisationswithmoreautomatedsolutionsforemissionmeasurementare2.2timesmorelikelytomeasureemissionscomprehensively,and1.9timesmorelikelytoreducetheiremissions.

Thefirstgenerationofsoftwareprovidershascomealongwayinautomatingthe

calculationpart.WiththeuseofAIandemissionsfactordatabases,theconversionofactivitydataintocarbonfootprinthasreachedahighdegreeofautomationinthecurrentstate.

THECURRENTSTATEOFCARBONACCOUNTINGAUTOMATIONANDAREASTOIMPROVE

Levelofautomation

Datacollection

咪

Reporting&action

Results

Calculation

&processing

Activitymapping

■HIGH■LOWiFOCUSAREAS

Source:GPBullhoundInsights

Loopingbacktothechallengeswiththecomplexityexplainedabove,itisunsurprisingthatactivitymappinganddatacollectionandprocessingwillbethehardestcomponentstoautomate.

GP.Bullhound

INCREASEDAUTOMATIONISCHAPTER417

CRUCIALFORWIDERADOPTION

Key

hurdlesforautomationof

activity

datacollection

01

and

processing

Carbonaccountingsoftwarecustomersandindustryexpertsidentifythreekeyareasslowingdowntheautomationandwideradoptionofcarbonaccountingsoftware:

1.Retrievingsupplier(Scope3)data.Gettingthecorrectdatafromsuppliersisadauntingtask,anditgrowswiththesize,geographicalscope,andcomplexityofyourvaluechain.Theprocessspansfromidentifyingthesuppliersanddatainquestion,whichsome

suppliersarenotableorwillingtoshare.Thisresultsinaheavyrelianceonthird-partyentitiesforabusinesstoperformcarbonaccounting.Thedependencycanjeopardisethereliabilityofresultsaswell.

2.Ongoingneedformanualprocessingofunstructureddata.Theabsenceof

standardiseddataformatsandthearrayofsourcesfromdifferentprovidersnecessitatetime-consuming,manualprocessestopreparethedataforuse.Toillustrate,considertheseeminglyroutineelectricitybills.Abusinessmighthaveasetofproviders

wherethedataarrivesindiverseformats,suchasPDFsorExcelsheets,atdifferent

frequencies.Theymightnotevenmeasureelectricityinthesameunit.Toensure

compatibilitywiththesoftware,manualgathering,cleaningandreformattingofthisdataisrequiredcontinuously.

3.Non-standardisedpracticesoverwhelm.Asbothmethodologiesanddataformatslackstandardisation,thereisroomforvariousapproachessimultaneously,ascompliance

withexistingregulationsistheobjective.Consideringthatcarbonaccountinghasonlyexistedforaround20years,itisunsurprisingthatnounifiedsystemhasyetbeen

developed.FrameworkssuchastheGHGProtocolandtheGlobalReportingInitiative(GRI)aremovingtheneedle,butaninteroperabledataformatisstillyearsaway.

02Infrastructurethatsolvesfordata

Whilethechallengesaboveallrequireamorematuringstateofthemarketandsystemicchange,thereareafewkeydevelopmentsthatwillhelpaccelerateprocessautomation.

■Enablingautomatedcarbonaccountingby'solvingfordata'

AItostructureandcleandata.GenerativeAIhasunlockedpossibilitiesto

automatetext-to-outputandrepetitivetasksineveryindustry.Indealingwithlargequantitiesofunstructureddata,suchasintheexampleofelectricity

bills,applyingnaturallanguageprocessingtopulltherightlineitemswillincreasethespeedandeaseofsuchlaborioustasks.WhileAItohelpdatastructuringingeneralwillbeimportant,companieslikeBriinkarealreadyinnovatingESGinsightsanddocumentanalyticswithAI.

GP.Bullhound

18CHAPTER4INCREASEDAUTOMATIONISCRUCIAL

FORWIDERADOPTION

FulltraceabilityofAI-enabledoutput.Theadvancementsabovearenotsci-fiwiththecurrentspeedofAIinnovation.However,thetechnologycanonlybeusedtoitsfullpotentialwheretheoutputisreliableandalwaystraceable.

ThismeansthatevenifanAIassistantretrievesandprocessesyourelectricitydata,anauditormustbeabletotracethedatabacktoeachelectricitybill.

ImprovedAPIanddataintegrationsinfragmentedsub-categories.Onceinplace,APIintegrationsthatpulldataautomaticallyfromabusiness'sdisparatesystemseasedatagatheringimmensely.APIstofinancialaccountingsystemsarenowusedtopullspend-baseddata.However,thescopeismuchbroaderinthefieldoflessstandardisedandprecision-activitydata.Althoughsome

moreconsolidatedsub-categorysoftware,likecorporatetravel,isincreasinglyinteroperablewithcarbonaccounting,manyoftheintegrationsneeded

betweendatasilosanddifferentsystemsarenotthereyet.

MoreadvancedAPIsolutions,suchasAPIaggregators,opensource

applicationsandAPI-firstsoftware,willbecrucialtoenableautomateddatagatheringandviabilityofcarbonemissionsmetrics.Wearealreadyseeing

influentialinnovatorslikeClimatiq,whichintegratescarbonemissiondataintoexistingbusinessfunctionsoftwareviaitsAPI.

Digitisingsupplychainsandsustainabilitydata.Retrievingdatafrom

suppliersisdifficultbecausewefirstneedfulldataavailability.Aspartofthesystemicshifttowardsmoretransparencyacrossglobaltradeandvaluechains,multipleeffortsondigitalisationandbuildingmassivecompany

databasesarealreadyunderway.CompanieslikeAltanaandFlexportaredigitisingsupply-chainlogisticsandEcoVadisandPrewavesupply-chain

sustainabilitycompliance.Allarebuildingvaluabledatabasesconsistingofthousandsofcompaniesthatcanservehelpfulinotherusecases-suchascarbonaccountingScope3emissions.

Althoughdigitisingallthecurrentmanualdataandprocesseswilltakeawhileglobally,themorereal-timedatawehaveoncompanies,themoreaccessibledatagatheringwillbe.Thesedevelopmentsarealsosynergic,astheeffortsincarbonaccountingwillbeanessentialcontributortoprocurement,transportandsupply-chaindecisions.

GP.Bullhound

INCREASEDAUTOMATIONISCHAPTER419

CRUCIALFORWIDERADOPTION

Theeffortsdrivingthesedevelopmentswillresultincompaniescreatingthepick-and-shovelapproachforautomatedandreliablecarbonaccounting:

KEYDEVELOPMENTSINDATACOLLECTIONANDINGESTIONCREATINGTHEPICK-AND-SHOVELFORCARBONACCOUNTING

柴

Datacollection&processing

Supplychaindataenablers

flexport.0Aitanaecovadls

CprewavesUPPLYSHIFT国tacto

Datalayerinnovators

CLARITYAIbriinkUPAIQHT!PROJECT

KNOWLEDE日画泉E

novataclimatiqgreenpixie

Carbonaccountingsoftware

mtosuTANOUPextonnes6DcycleNormativepny

PERSEFOHptnfwatershed

pledgekabauncomundoONet

Emitwise°carbencloudScope3

Activitymapping

Reporting&action

DTerrascopeminImum

Calculation

Results

圆

UnravelCarbon

WMP

0DRQ

。

0

KEYAREAFORDEVELOPMENT

Source:GPBullhoundInsights

Fromtheend-userperspective,therewillnotbeawinnerthattakesitallfortheuse-

casesofcarbonaccounting.Duetothecomplexityandscopeoftheprocess,wewon't

haveablanketsolution.Webelievethesegmentsbelowwillhaveverydifferentcustomergroups,characteristicsandsoftwarecapabilitiesinamaturemarketwheremultiple

vendorswillco-exist.

GP.Bullhound

20CHAPTER4INCREASEDAUTOMATIONISCRUCIAL

FORWIDERADOPTION

END-USERCARBONACCOUNTINGSOFTWAREFORDIFFERENTUSER-GROUPS

Automatedsoftware

Plug-and-play

判TANUR

eHtyDcycle

SMEs

2ndgeninnovators

DTerrascope

ONetO

UnravelCarbon

cimatiq

#mnmum

Verticallyfocused

BpledgeScope3

greenpxle●aC

Emitwise°*mndocarbascu

00ZROkabaun

Enterprise

1genhorizontalpioneersspheraPeOHI

四EcochainPA

fWatershedNormative

Consultants

BCGm

Digital

services

Verticalsoftwareisonepromisingsegmenttargetinganicheindustryorsub-categoryof

emissions.Byconcentratingonbuildingyourproductforaparticularcustomeroremissionscategory,thereislessvarietyincustomerprocesses,datainputsandstandards,soeffortswillbemoreimpactfulinsolvingautomation.Industrypartnershipswhicharemore

customisedandhigh-touchtodaycanlaterresultinawinningtoolbuiltonbestpracticesandhigh-qualitydatasets.

Ontheotherhand,webelievethatwell-funded1stgenerationsoftwareplayerswillseefirst-moverbenefits.Withtheresourcestobeattheforefrontofthekeydevelopments,eitherbyin-housedevelopmentoracquisitions,severalplayerswillbewell-positionedtocontinueasinnovators.Althoughmanyofthemtargetenterprisecustomers,theircustomerbasealreadyserveslucrativeaccesstodataandscalingbenefitsandispositionedforpartnershipswith

bigtech.

Lastly,weseethatprovidersfocusedonthelongtailarewellpositionedtobringalow-touchofferingsooner,asSMEsoftenhavesimplerdataandpartnerstructures.However,withfewergranularrequirements,thequestioniswhethercarbonaccountingbecomesamoduleinmoreholisticESGreportingsoftware,ratherthanastandaloneproduct.

GP.Bullhound

21

CHAPTER5

Marketpotentialdrivenby

next-generationcarbonaccountingtechnologies

GP.Bullhound

22CHAPTER5MARKETPOTENTIALDRIVEN

BYNEXT-GENERATIONCARBONACCOUNTINGTECHNOLOGIES

Reachingastateoffullclimateaccountabilitywillbeoneofthemostessentialand

seeanewnormalwhereaccountability,transparency,andmarketpowerswillenablethe

immediateeffectivemechanismsforbusinessestoreconsider'business-as-usual'.We

transitiontowardsamoresustainableeconomy.

Theindispensabletechnologyanddigitaltoolsareleadingthechargeinthistransformation.Thesearethekeydriverspropellingthecarbonaccountingsoftwaremarketfromaniche

andlow-adoptionpracticetoamulti-billiondollarindustry.Presently,themarketisvaluedatasubstantial$12bn,withresearchforecastingastaggeringgrowthto$65bnby2030.Technologyisthecatalystforamorewidespreadandefficientimplementationofcarbonaccountingpractices,tacklingthecriticalchallengeofdatacomplexityandintegration

head-on.

WeareexcitedtowitnessthetransformativepowerofAIinstructuringactivitydataand

systemintegrations,pavingthewayformoreviableend-usersoftwaresolutions.With

time,digitalsupplychainsandlargereal-timedatabaseswillfacilitatemoreautomatedandtransparentcarbonaccounting.It'simportanttonotethatdifferentcustomerswillrequiredifferentaccountingsolutions.Whileseveralsystemicdevelopments,suchasimproved

standardisationandmoretransparentregulations,arenecessary,wemaintainapositiveoutlookontechnology'sabilitytoaddressourmostcriticalchallenges.

END-USERCARBONACCOUNTINGSOFTWAREFORDIFFERENTUSER-GROUPS

20222030

Source:GPBullhoundInsights

Source:SNSInsider

GP.Bullhound

AUTHOR23

AUTHOR

NELLY

TRANAAS

nelly.tranaas@

GP.Bullhound

24ABOUT