How to Use Carbon Management Tools to Fight Greenwashing
Greenwashing has become a prevalent issue in the manufacturing sector, with a number of headline-making scandals leading to a loss of trust and potential legal consequences. With the rise of new anti-greenwashing laws in the EU and the United Kingdom, an ever more discerning public, companies have even resorted to simply not saying anything at all about their sustainability initiatives to avoid the negative publicity associated with greenwashing accusations. These scandals and scandals around carbon credits and other sustainability initiatives are making sustainability a scary word.
But there is a solution: carbon accounting software. This blog will delve into greenwashing, its impact on brand reputation, and the regulatory risks involved. We’ll also explore how carbon accounting software can help companies make accurate sustainability commitments, measure their GHG emissions more effectively, and report their sustainability policies under disclosure frameworks like the CDP with greater transparency. Furthermore, we will discuss the role of marketing and sustainability teams in using this improved and accurate data to combat greenwashing and build consumer trust.
What is Greenwashing?
Greenwashing is a marketing practice that can have a detrimental impact on consumer trust. It involves making false or exaggerated claims about a company’s sustainability efforts, leading consumers to believe that the company is more environmentally friendly than it actually is.
In some cases, companies can also accidentally greenwash, as the data they may receive about their own green investments and projects might not be correct. The trouble is that companies need accurate data on their carbon emissions to take the right sustainability actions if we’re to meet the 1.5C warming limit and avoid the worst consequences laid out in the intergovernmental panel on climate change’s latest report.
Emitwise’s carbon accounting tools can help companies combat greenwashing. This software allows companies to accurately measure and report their greenhouse gas (GHG) footprint and monitor the impact of their decarbonisation policies. By using carbon accounting software, companies can demonstrate transparency, identify areas for improvement, take action, measure progress, and communicate their sustainability efforts effectively to stakeholders.
Emitwise’s advanced carbon management software supports businesses in leveraging the latest technological developments to fight greenwashing. It uses data that rivals financial accounting data to provide accurate emissions data, allowing companies to avoid misleading claims and showcase their genuine commitment to sustainability.
The Impact of Greenwashing on Brand Reputation
Greenwashing poses a significant threat to a company’s brand reputation, leading to a loss of consumer trust. As consumers, NGOs and lawmakers become more informed, they can spot misleading environmental claims. The reputational damage caused by greenwashing accusations can also lead to a drop in share prices. To combat this, adopting carbon accounting software is key.
Carbon accounting software enables companies to accurately measure and report their carbon footprint and, in the case of Emitwise, get primary data on Scope 3 supply chain emissions, which are notoriously difficult to measure while also being the main source of businesses’ emissions. Companies can maintain a positive brand image and build consumer trust by demonstrating genuine sustainability efforts and engaging in transparent communication. Prioritise accurate reporting and data to avoid greenwashing accusations and incorporate sustainable practices throughout the value chain based on the real-world data that carbon accounting platforms like Emitwise can provide.
New Regulations like the EU CSRD Will Increase the Risks of Greenwashing
Greenwashing can have severe consequences for companies in terms of legal fines as regulators are cracking down on inaccurate or misleading environmental claims. With the introduction of new regulations like the EU CSRD, greenwashing risks have become more dangerous than ever. These new regulations have created a greater need for transparency in reporting, which means companies have to get closer to their supply chains and obtain data at a granular level.
Carbon management software is a valuable tool in meeting these requirements. With this software, companies can accurately measure their greenhouse gas emissions and take proactive steps towards reducing their carbon footprint. By doing so, they protect their brand reputation and contribute to global efforts to combat climate change.
Emitwise’s carbon accounting software allows companies to track and measure their environmental impact by monitoring emissions, energy usage, and resource consumption. With access to transparent and accountable data, companies can make informed decisions to reduce their environmental footprint. Emitwise’s platform is designed to meet the legal obligations of regulations like the CSRD, with integrated and accessible reports available on demand to ensure companies can report on the steps they’ve taken to identify, assess risks, and mitigate those risks resulting from their activities and measure progress on the impact of these actions over time.
Solving the GHG Protocol Problem: Getting Accurate Emissions Data is Hard!
What are Scope 3 emissions?
Getting accurate emissions data is a significant challenge that companies face when filing their sustainability reporting, especially where supply chains are concerned. The Greenhouse Gas Protocol, developed by the World Resources Institute and World Business Council for Sustainable Development, divides emissions into Scopes 1, 2, and 3. Scopes 1 and 2 are direct emissions from a business’s daily activities, like lighting their offices. Scope 3 relates to emissions in the supply chain that occur in procurement.
What’s the Best Way to Reduce Supply Chain Emissions?
Companies could reduce their Scope 1 and 2 emissions by using more renewable energy, adjusting employee commuting, or lowering their electricity consumption. However, under Scope 3 reporting requirements, businesses are accountable for the carbon footprint in their supply chains. The logic follows that if companies can leverage their suppliers to change practices, the benefits of decarbonisation will cascade down the supply chain, working to halt global warming.
The supplier engagement part is tricky, as companies can be expected to calculate the emissions from their direct actions, but how can they know the overall emissions related to procurement when some goods pass through many hands and are sold many times before reaching their end-user?
This is where the next-generation supply chain emissions management software comes in. By automating data collection, calculation, and reporting, the software saves time and reduces the risk of errors. Emitwise combines the most accurate emissions databases, primary data from suppliers, and its advanced AI-powered algorithms to ensure their data is the gold standard for accurate carbon accounting data for direct and indirect emissions.
Inaccurate emissions data can result in damaging accusations of greenwashing. To prevent such claims, businesses need accurate and transparent data that reflects the true emissions that result from their activities. By utilising Emitwise’s advanced carbon accounting software to complete their sustainability reporting, sustainability teams can effectively demonstrate that their sustainable activities have had a real impact, and marketing teams can shout about that impact with confidence, reaping the reputation and business rewards.
Introducing Procurewise
To obtain accurate emissions data from your suppliers, you can request them to provide detailed information about their products or services. However, this is not as easy as it may seem. This information gives many suppliers a competitive advantage as it involves a high degree of product traceability. Your suppliers may have their own suppliers further down the chain, which they may not wish to reveal. Furthermore, due to data protection issues in some countries, companies are hesitant to share data without strong assurances of confidentiality. The biggest obstacle, however, is that suppliers often don’t have the means or knowledge to measure the emissions resulting from their activities. They often need support from the buyers, large traders and manufacturers upstream.
How Can I Get Accurate Emissions Data from my Suppliers?
This is where Emitwise’s Procurewise platform comes in. With Procurewise, suppliers are provided with a free, lightweight version of Emitwise’s platform, where they can take advantage of Emitwise’s multi-layered emissions calculation tools to input their product information and calculate their own carbon footprint. this is a win-win, as suppliers who demonstrate that they have this information are more likely to reap the business rewards from a world of buyers and investors that demand ever more transparency around emissions.
Emitwise: From CDP and ESG Carbon Accountants to Marketing Magicians
Without thorough and well-informed data on supply chain emissions, it’s easy for companies to make misleading or false claims about their sustainability activities. For some companies, the temptation is to jump straight into using these sustainability efforts in their marketing activities. However, the first step should always be for companies to arm themselves with the tools to properly scrutinise the impacts of any sustainability projects they invest in or policies they make.
The Marketing Benefits of Emitwise Carbon Accounting Software
Sustainability teams are crucial in promoting transparency and accountability within organisations, but they must be supported. Emitwise’s carbon accounting software helps measure and track carbon emissions, enabling businesses to understand their environmental impact accurately. However, it does more than that. Emitwise understands the importance of democratising access to this information throughout an organisation, which is why all of their emissions information is presented in an accessible, easy-on-the-eye format and explained in layman’s terms. This is the best way to present the data to support a business’s green claims and enhance brand credibility.
How Can Marketing Teams Maximise the Trustworthy Data from Carbon Management Software?
Emitwise’s goal is to align greenhouse gas accounting and reporting with the accuracy of financial reporting.
It provides insights into direct and indirect emissions, streamlines reporting processes, and aligns with international standards like the GHG Protocol and the Paris Agreement. By leveraging this data, companies can contribute to sustainable development and meet their ESG goals while building trust with customers, the general public and financial institutions.
The real-time data analysis on offer helps to identify emission hotspots, the best and worst-performing suppliers, and the lowest-hanging fruit sustainability changes. It also drives proactive action to reduce greenhouse gas (GHG) emissions. The software also automates calculations and reporting, saving time and improving efficiency for sustainability teams. It seamlessly integrates with existing systems, allowing for seamless data collection and collaboration throughout the value chain through Procurewise.
Emitwise’s carbon management platform can offer you the granular data you need to say that your cycle to work saved you ‘x’ amount of carbon instead of your drive. It can also tell you how many emissions were saved by switching suppliers. With this type of granular, independent and scientifically verified information on your carbon emissions, marketing teams will be empowered to do their thing without fear of suffering greenwashing accusations.
Marketing teams can leverage the reliable data provided by carbon accounting software to strengthen their sustainability claims. They can effectively communicate their efforts and build consumer trust by prioritising transparency and accuracy. Close collaboration with the sustainability team is crucial in understanding and incorporating the metrics into marketing materials.
Don’t Stop at Marketing Teams, get Company-Wide Sustainability Buy-in!
To get everyone on board with the carbon transition, you need to show them the path, and one way to do this is to use accurate emissions data.
What once seemed an almost impossible feat: getting accurate business-wide emissions data on Scope 1, 2, and 3 emissions is now possible with carbon accounting tools that provide emissions data that are ready for the regulators, ESG reporting, the CDP, the financial accountants, the C-suite and the supply chain. This improved accuracy enables success in the following business areas:
- Regulation: you can’t pass audits without accurate, trustworthy data.
- Decarbonisation: accurate data is crucial for quantifying impact. Without it, you can’t measure the impact of your actions, and you won’t be able to make consistently beneficial decisions.
- Profitability: Using data to drive revenue-creating or saving decision-making.
Procurewise, Emitwise’s supply chain carbon accounting tool, does the complicated work for a company’s Scope 3 emissions. It collates all the disparate supplier data into a cohesive carbon story and dispels the mystery around emissions data.
Working with a partner like Emitwise who understands the importance of presenting emissions data in relatable ways is essential. Shareable, customisable dashboards that allow emissions factor inputs tailored to your company are essential to creating a personalised data-gathering experience. The platform arranges emissions by scope/category so users can ensure what they see is relevant. It also offers pre-populated reports that make submission, audits, and reporting a breeze.
Make it Good for Business; then Stuff Gets Done.
Carbon accounting is a necessary tool for businesses with environmental performance commitments and obligations. All businesses need an accurate emissions baseline against which they can track their progress and change practices where necessary. 89% of investors believe companies with strong ESG performance should have a valuation premium. We already know the benefits this can bring for the planet, customers, shareholders, and investors. It would be a waste not to bring employees along for the ride.
In the not-so-distant future, sustainability will become a core component of modern companies and should be treated as such. What’s good for the planet and what’s good for business aren’t so different; with accurate emissions data, businesses can have it both ways.
Conclusion
Companies need accurate emissions data to combat greenwashing and ensure sustainable practices. Carbon accounting software like Emitwise can offer businesses improved transparency, trustworthy data, and the ability to track emissions across the entire supply chain. Emitwise takes data accuracy incredibly seriously. With the market’s most accurate carbon accounting data, businesses will never be surprised by greenwashing accusations or grievances they may receive. They can take the next logical step by using Emitwise to proactively reduce emissions in their supply chains and capture risks before they capture them.
Marketing and sustainability teams can play a crucial role in ending greenwashing by ensuring that all of their green claims are backed up by cross-referenced data that reflects the true reality of their carbon footprint. With the help of carbon accounting software, businesses can protect themselves from accusations of greenwashing and move towards a future of transparent and sustainable supply chains and manufacturing. Contact us today if you want to learn more about how Emitwise can benefit your company.
