Knowledge & Insights about Environmental Impact & Carbon Management | Carbmee

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Expertise to drive sustainable transformation

The market rules have changed and there is increasing pressure for businesses to address their climate impact. Failing to implement a robust carbon management software such as carbmee’s Environmental Intelligence System (EIS™) to support your company’s net-zero journey can pose significant risks to your business. As regulations tighten, customers demand for more transparent operations, and investors assess climate risks, companies that neglect to implement carbon management software stand to face a multitude of challenges. Especially the ones with large and complex supply chains in carbon-intensive industries.

In this blog post, we dissect the potential consequences of forgoing a carbon management software solution – a decision that can prove costly in the new low-carbon economy.

Failing to adopt a carbon management software system could lead to a critical setback in the upcoming Carbon Border Adjustment Mechanism (CBAM) requirements. Without automated data collection and reporting, your company may struggle to provide accurate carbon footprint information, resulting in missed deadlines and potential financial penalties.

The CBAM, set to take effect by January 2024, aims to ensure that companies importing goods from outside the European Union disclose the climate impact of those goods. Companies that lack an efficient carbon management software risk failing short in meeting these compliance deadlines. Without automated data collection and reporting capabilities, the process of calculating and disclosing product carbon footprints becomes extremely time-consuming and prone to human error. Such delays or mistakes not only hinder your company’s ability to comply but also expose it to potential penalties, impacting both your bottom line and reputation.

1. Missing CBAM Compliance Deadlines and Potential Penalties

As customer demand for product carbon footprint disclosure escalates, companies without a streamlined carbon management approach may struggle to keep up. Manual data collection and analysis can strain resources and divert valuable time and effort from core business activities. This could hinder your ability to fulfill customer demands for transparent, eco-friendly products.

As global awareness of climate change continues to grow, consumers are increasingly seeking transparency regarding the environmental impact of the products they purchase. Companies that lack an automated carbon management software system may find themselves grappling with the complexities of manual data collection and analysis. This resource-intensive process diverts valuable manpower and time away from core business activities. Moreover, the lack of a streamlined approach may result in delayed responses to customer demands for product carbon footprint disclosure, potentially leading to missed business opportunities and dissatisfied customers.

2. Straining Resources in the Face of New Demands for Carbon Transparency

In a market where carbon neutrality is an increasingly sought-after attribute, companies without efficient carbon management risk falling behind. Failure to provide carbon neutral products in their portfolio, might lag behind competitors that prioritized efficient carbon management. Redesigning products to reduce their carbon footprint is no easy task, without a carbon management software that provides transparency and enables the company to benchmark the carbon performance of alternatives materials and suppliers hinders their ability to be the first to offer suitable options to customers, which may result in a loss in market share.

As customers increasingly prioritize sustainability, they seek out products and services that align with their values and net-zero objectives. Without an effective carbon management software, your company loses the ability to monitor climate performance in real-time and report reduction of emissions as requested by customers. As a result, your company may lose credibility in the eyes of environmentally conscious consumers, potentially leading to a declining market share and diminished brand reputation.

3. Hindering Market Position without Carbon Neutral Products

The absence of a robust carbon management system may hinder your company's ability to build resilient, low-carbon supply chains. Without insights into supplier emissions and sustainability practices, you risk partnering with less environmentally conscious suppliers. This vulnerability could impact the reliability and performance of your supply chain, potentially leading to disruptions.

Supply chain resilience and sustainability are integral components of modern business operations. Companies that disregard the adoption of carbon management software may find themselves lacking essential insights into the emissions profiles and sustainability practices of their suppliers. This lack of visibility can result in partnerships with suppliers that have higher carbon footprints and lower sustainability standards. In the long run, such partnerships could undermine the reliability and performance of your supply chain, exposing your company to potential disruptions and reputational risks.

4. Vulnerable Supply Chains and Supplier Relations

Companies that do not embrace carbon management software may find themselves at a disadvantage in attracting environmentally conscious investors. As the investment landscape shifts towards sustainability, failure to demonstrate a commitment to emissions reduction and responsible business practices could result in missed investment opportunities. Greener companies offering lower compliance and market risks may receive more attention from investors.

The global investment landscape is undergoing a transformation as environmental, social, and governance (ESG) considerations take center stage. Companies that fail to integrate a robust carbon management strategy may struggle to attract environmentally conscious investors who prioritize sustainable practices and responsible business behavior. In an era where sustainability is closely tied to long-term financial success, companies that lack a clear commitment to emissions reduction and responsible operations may find themselves overlooked in favor of greener alternatives with lower compliance and market risks.

5. Loss of Investment Opportunities in the Low-Carbon Economy

In the carbon management industry, the Environmental Intelligence System (EIS™) stands as an all-encompassing solution, empowering companies to overcome climate challenges in a holistic, effective and quick way. With its cutting-edge technology, the EIS™ addresses the key risks discussed earlier and positions your company for net-zero success:

✓ Ensuring Fast CBAM Compliance and Avoiding Penalties

EIS™ streamlines data collection and reporting, enabling your company to meet CBAM requirements seamlessly. By automating the carbon footprint calculation process, EIS™ ensures accurate and timely reporting, sparing you from the financial penalties associated with non-compliance.

✓ Efficiently Managing Carbon Disclosure Demands

EIS™ automates your Product Carbon Footprint calculations, freeing up resources for innovation and growth. This automation ensures that your company can respond swiftly to customer demands for transparent, eco-friendly product information without compromising on core business activities.

✓ Thriving in the Low-Carbon Economy with Green Products

EIS™ transforms sustainability efforts into a competitive edge. Its precision carbon accounting and product lifecycle intelligence empower your company to make smart design decisions to reduce the environmental impact of your products, enhancing your position in the carbon neutral market and attracting conscious consumers.

✓ Building Resilient Supply Chains and Strengthening Supplier Relations

EIS™ leverages your ERP data to evaluate supplier emissions and sustainability practices. With this insight, you can make informed procurement decisions, building resilient, low-carbon supply chains that minimize risks and disruptions.

✓ Enhancing Investment Appeal in the Low-Carbon Economy

EIS™ positions your company as an attractive choice for environmentally conscious investors. By showcasing your outstanding climate performance through accurate carbon footprint measurement and reporting, EIS™ opens doors to green investment opportunities and favorable interest rates, ultimately improving your company's valuation.

Embrace EIS™ as your high-impact accelerator for net-zero success. Through automation, data precision, and actionable insights, EIS™ equips your company to navigate regulatory challenges, drive sustainability, optimize resources, and secure a competitive advantage. Break free from the limitations of traditional carbon management approaches and embark on a transformative journey towards a resilient, responsible, and prosperous future. Contact our experts at carbmee to learn how EIS™ can revolutionize your path to net-zero and unlock untapped potential.

Solving Challenges with the Environmental Intelligence System (EIS™): Your Path to Net-Zero Success

Unlocking Net-Zero Success with sustainability Software

Discover how sustainability Software ensures CBAM compliance, boosts transparency, and secures your company's future in the low-carbon economy.

The Carbon Countdown: Why Waiting on Software Implementation Is Risky Business

The Corporate Sustainability Reporting Directive (CSRD) is a European Union regulation that amends and extends the previous Non-Financial Reporting Directive (NFRD). Its primary goal is to enhance the quality and transparency of sustainability information disclosed by companies, making them more accountable for their environmental and social impacts.
CSRD standardizes sustainability reporting, ensuring that investors, consumers, and other stakeholders have access to reliable and comparable data. By elevating sustainability information to the same level as financial information, the EU CSRD aims to support the transition to a sustainable global economy.

The CSRD strengthens the rules established by the NFRD (Non-Financial Reporting Directive) by expanding both the scope of companies affected and the depth of the reporting requirements. This change drives the EU's transition to a sustainable economy by holding more organizations accountable for their non-financial performance.

The most significant change is the expanded scope, which increases the number of affected companies from 11,700 to nearly 50,000. The new criteria apply to:

1. All large companies that meet at least two of the following three criteria:

Revenues surpassing €40 million per year

2. All companies listed on EU-regulated markets, with the exception of listed micro-enterprises.

The CSRD requirements apply to a broad range of EU and non-EU companies, ensuring a wide net of accountability. The directive is mandatory for companies that meet the specific in-scope criteria, making CSRD compliance a critical focus for businesses operating within or trading with the EU.

The CSRD is mandatory for companies that meet in-scope criteria, which include:

Publicly listed companies on EU-regulated markets

EU-based companies with over 250 employees and a net turnover of €40 million

Non-EU companies with at least one subsidiary in the EU and a net turnover of more than €150 million within the EU.

Which Companies Are Subject to CSRD Requirements?

Reporting requirements for the CSRD will be phased in over several years to allow companies time to prepare. The implementation is staggered based on company size and existing obligations.

Reporting in 2025 (on FY 2024): Companies already subject to the NFRD.

Reporting in 2026 (on FY 2025): Large companies not currently subject to the NFRD.

Reporting in 2027 (on FY 2026): Listed SMEs (small and medium-sized enterprises), except micro undertakings.

Reporting in 2029 (on FY 2028): Third-country undertakings with net turnover above 150 million in the EU if they have at least one subsidiary or branch in the EU exceeding certain thresholds.

To ensure CSRD compliance, companies must prepare an auditable non-financial statement within their annual report. This statement must cover sustainability policies, risks, and performance outcomes, providing a holistic view of the company's impact and strategy.


The specific content of the statement will vary depending on the size and sector of the company but could include policies and performance details, such as: 

a brief description of the company’s business model, strategy and sustainability risks and opportunities; 

implementation plans as they relate to the transition to a sustainable economy, measures taken to achieve climate neutrality by 2050 ( in line with the Paris Agreement), and exposure to coal, oil and gas-related activities;

double materiality, i.e. both the sustainability matters that affect the company and the impact of the company on the environment, market, and people; 

greenhouse gas emission reduction targets; 

policies in relation to sustainability (including incentive schemes); 

and the processes the undertaking used for due diligence in relation to sustainability issues, as well as the current and future negative effects of the business' operations and value chain.

What Information Must Be Disclosed Under the CSRD?

All companies subject to the directive must prepare their CSRD report using the European Sustainability Reporting Standards (ESRS). These standards were developed to create a common framework for sustainability reporting, ensuring all disclosures are consistent, comparable, and reliable across the EU.

The ESRS development process referenced globally recognized frameworks like CDP, GRI, and SASB. The standards include both universal requirements applicable to all companies and sector-specific standards to address unique industry impacts.

Which Reporting Standards Apply to the CSRD?

While sanctions are defined by individual EU member states, companies that fail to comply with the CSRD can expect significant penalties. These consequences go beyond fines and can impact a company's financial stability and market reputation.

Financial Penalties: In the case of NFRD implementation by member states, fines in Portugal ranged from €50 to €1,500, while in Germany companies are fined up to either €10M, 5% of the annual turnover, or twice the amount of the profits gained/losses avoided because of the breach.

Reputational and Legal Risks: Non-compliance can lead to severe brand damage, loss of investor and stakeholder confidence, and potential legal action from non-governmental organizations.

What Are the Penalties for CSRD Non-Compliance?

Implementing the CSRD will require significant time and resources. Regardless of size, companies should begin preparing now to ensure a smooth transition and avoid penalties.


Ensure that key decision-makers across your company understand the CSRD reporting requirements and their strategic implications.

Stay informed about announcements from EFRAG (European Financial Reporting Advisory Group) and official ESRS guidance.

Evaluate your company's current processes for identifying, gathering, and managing sustainability-related information.

Establish clear sustainability targets and key performance indicators (KPIs) to track progress and relevance over time.

Implement specialized software to accurately quantify, manage, and report your sustainability data in a compliant format. Here’s where Carbmee comes into play. 

How Can Your Company Prepare for CSRD Compliance?

Preparing for the CSRD is complex, but the right technology can streamline the entire process. The carbmee EIS™ carbon management solution empowers your organization to plan for success and achieve compliance with confidence. 


Centralized & Automated Data Collection: Integrate directly with your existing ERP system to automate data collection, eliminating manual errors and saving time.

Guaranteed Accuracy: Utilize industry-specific databases of emission factors to ensure the highest level of accuracy in your carbon accounting.

Strategic Target Setting: Leverage hotspot analysis, benchmarking, and gap analysis to create data-driven strategies for compliant CSRD reporting and decarbonization.

Actionable, Real-Time Insights: Gain access to impact-oriented dashboards that help you track progress and deliver on your sustainability targets in good time.


Take the first step towards CSRD compliance with carbmee EIS™ and decarbonization today. Get in touch with our experts!

Simplify CSRD Reporting with Carbmee: Save Time & Resources

The primary goal of the CSRD is to make corporate sustainability reporting more consistent, comparable, and reliable across the European Union. By standardizing disclosures, it aims to provide stakeholders with the information needed to make sustainable investment decisions and hold companies accountable for their environmental and social impacts.

What Does "Double Materiality" Mean in the CSRD Context?

Double materiality is a core concept of the CSRD. It requires companies to report on sustainability from two perspectives: "financial materiality" (how sustainability issues affect the company's performance) and "impact materiality" (how the company's operations impact the environment and society).

Are Non-EU Companies Affected by the CSRD?

Yes, certain non-EU companies are affected. A non-EU parent company must comply if it generates a net turnover of more than €150 million in the EU and has at least one large or listed subsidiary or a significant branch within the EU.

What Are the European Sustainability Reporting Standards (ESRS)?

The European Sustainability Reporting Standards (ESRS) are a set of mandatory reporting rules that all companies subject to the CSRD must follow. They specify the exact information that needs to be disclosed and the format for reporting, ensuring all sustainability reports are standardized and comparable.

Scope: The CSRD significantly increases the number of companies required to report on sustainability.

Requirements: Companies must provide more comprehensive data on environmental, social, and governance (ESG) factors, including forward-looking targets and strategies.

Reporting: CSRD reporting must follow the mandatory European Sustainability Reporting Standards (ESRS) to ensure consistency and comparability.

Timeline: The CSRD requirements are being phased in between 2025 and 2029, depending on the company's size and type.

The Corporate Sustainability Reporting Directive (CSRD) marks a pivotal moment for corporate transparency. But what will it mean for your industry, and how can your company prepare to stay fully compliant? This guide breaks down everything you need to know.

CSRD: Master Complex Reporting Requirements

CSRD demands complex sustainability data. Learn the key requirements, simplify the reporting process and stay compliant. Get informed at Carbmee!

Tracking the percentage of renewable energy used across your operations is now a cornerstone of carbon management especially as companies face mounting pressure from Scope 2 reduction goals, RE100 commitments, and CSRD transparency requirements.

Yet most organizations struggle to monitor energy procurement data at a granular level. Inconsistent regional data, manual collection methods, and unclear market-based vs. location-based reporting create major roadblocks to actionable insights.

The Environmental Intelligence System carbmee EIS™ directly addresses these critical pain points by providing a sophisticated and automated platform for modeling renewable energy data with unparalleled granularity, right down to the individual site or specific product level. This granular visibility empowers companies to move beyond aggregated estimates and gain a precise understanding of their renewable energy consumption across all facets of their operations. By centralizing and standardizing energy data with Custom Properties, users unlock the potential for truly smarter and more strategic energy procurement decisions. Furthermore, the platform provides real-time insights into Scope 2 emissions performance, enabling proactive management, identification of areas for improvement, and confident tracking of progress towards sustainability goals. With Custom Properties, organizations can transform the complex challenge of renewable energy monitoring into a powerful driver for emissions reduction, regulatory compliance, and enhanced corporate reputation.

Why Renewable Energy Metrics Matter for Scope 2 Reduction and CSRD Reporting

To effectively reduce Scope 2 emissions and align with the Corporate Sustainability Reporting Directive (CSRD), companies should monitor several key renewable energy metrics. These metrics not only aid in accurate emissions reporting but also guide strategic decisions toward decarbonization.

% Renewable Electricity by Site or Product: Assessing the percentage of renewable electricity used at each site or for each product helps identify areas with higher carbon footprints. This granularity enables targeted interventions, such as investing in renewable energy sources where they will have the most impact.

Energy Type and Source: Distinguishing between energy types—such as solar, wind, hydro, or biomass and their sources (on-site generation, grid mix, or certified Power Purchase Agreements (PPAs) is crucial. This differentiation aids in understanding the reliability, sustainability, and emissions associated with each energy source.

Location-Based vs. Market-Based Emissions Factors: The Greenhouse Gas (GHG) Protocol outlines two methods for calculating Scope 2 emissions:

Location-Based Method: Calculates emissions based on the average emissions intensity of the local grid where the energy consumption occurs. This method reflects the physical reality of energy use. 

Market-Based Method: Accounts for emissions based on the specific energy purchases a company makes, including renewable energy certificates (RECs) or PPAs. This method reflects the emissions associated with the energy that companies have purposefully chosen. 

Understanding both methods is essential, as they can yield significantly different emissions figures. For instance, a company may report lower emissions under the market-based method due to renewable energy purchases, while the location-based method may reflect higher emissions based on the local grid's energy mix.

Residual Mix Emission Factors: In the absence of specific contractual instruments, companies should use residual mix emission factors, which represent the emissions intensity of the remaining electricity on the grid after accounting for renewable energy claims.

Energy Attribute Certificates (EACs) and Guarantees of Origin (GOs): Tracking the procurement and retirement of EACs or GOs ensures that renewable energy claims are substantiated. These certificates verify that a certain amount of electricity was generated from renewable sources.

According to the International Energy Agency (IEA), the power sector is a significant contributor to global CO₂ emissions, accounting for over 40% of emissions from fuel combustion. Therefore, transitioning to renewable energy sources and accurately tracking related metrics are vital steps in reducing overall emissions and achieving sustainability goals.

Managing renewable energy data presents several challenges that can impede the transition to a sustainable energy future. These challenges span technical, organizational, and regulatory domains. Below is an overview of the key obstacles:

Intermittency and Variability: Renewable energy sources like solar and wind are inherently intermittent, leading to fluctuations in power generation. This variability complicates grid management and requires sophisticated forecasting and balancing mechanisms.

Data Volume and Complexity: The proliferation of sensors and smart devices in the energy sector has led to an explosion of data. Managing this vast amount of information requires robust data storage, processing, and analytics capabilities. 

Integration with Existing Systems: Integrating renewable energy data with legacy systems poses significant challenges. Disparate data formats and protocols can hinder seamless communication between new and existing infrastructure.

Data Privacy and Security: As energy systems become more digitized, they become more vulnerable to cyber threats. Ensuring the privacy and security of energy data is paramount to protect against unauthorized access and data breaches.

Data Quality and Standardization: Inconsistent data quality and lack of standardization can lead to errors in analysis and decision-making. Establishing common data standards is essential for accurate and reliable energy data management.

Regulatory and Compliance Issues: Navigating the complex landscape of energy regulations and ensuring compliance can be challenging. Regulatory frameworks often lag behind technological advancements, creating uncertainty.

Challenges in Renewable Energy Data Management

Accurate and granular monitoring of renewable energy consumption offers substantial value extending beyond mere regulatory compliance. By providing a clear and comprehensive understanding of energy sources, businesses can make more informed decisions regarding their energy procurement strategies, directly aligning these choices with ambitious sustainability objectives. This detailed insight into renewable energy usage plays a crucial role in effectively reducing Scope 2 emissions, a key component of comprehensive carbon accounting. Furthermore, it directly supports participation in prominent initiatives like RE100 and the setting and achievement of Science-Based Targets Initiatives, demonstrating a tangible commitment to climate action. Enhanced data on renewable energy also streamlines and strengthens reporting obligations under key sustainability frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) E1 energy disclosure requirements, ensuring greater transparency and accountability in environmental performance reporting.

Strategic Importance of Renewable Energy Tracking

Carbmee's platform empowers businesses to achieve granular energy modeling through the utilization of customizable data fields. These Custom Properties offer a comprehensive understanding of energy consumption and its associated emissions, going beyond basic utility data.

One key Custom Property is the percentage of renewable energy utilized, which can be specified at various levels, including individual sites, specific energy suppliers, or even down to the product level. This detailed breakdown allows for precise tracking of renewable energy adoption and its impact on the carbon footprint.

Furthermore, it enables the categorization of energy consumption by Energy Source Type, differentiating between sources such as wind, solar, hydropower, and various fossil fuels. This level of granularity is crucial for understanding the environmental impact of different energy choices and identifying opportunities for transitioning to cleaner alternatives.

To provide a complete picture of Scope 2 emissions, Carbmee supports the distinction between market-based and location-based emission factors. Market-based factors reflect the emissions associated with the specific electricity contracts and renewable energy certificates (RECs) a company has purchased, while location-based factors represent the average emissions intensity of the grid where the electricity is consumed. This dual approach ensures comprehensive and transparent reporting in accordance with recognized GHG Protocol guidelines.

For organizations actively engaging in renewable energy procurement through Power Purchase Agreements (PPAs), Carbmee offers dedicated Custom Properties to capture PPA Status and Region Grid Mix. This allows for the accurate accounting of emissions reductions associated with PPAs, considering the specific grid mix where the PPA-generated electricity is injected.

By capturing these detailed energy-related inputs through Custom Properties, Carbmee directly integrates this information into Scope 2 emissions calculations. This ensures that businesses can not only accurately measure their indirect emissions from purchased electricity but also plan future energy procurement strategies with greater confidence and precision, ultimately driving progress towards sustainability goals and informed reporting.

Custom Properties in Carbmee: Model Renewable Energy Mix With Precision

Carbmee’s Carbontology connects energy data with facility hierarchies and carbon models:

Say goodbye to tedious spreadsheet reconciliation with emissions reports. Now, gain structured, site-specific carbon visibility.

Dynamic emissions tracking through grid mix and energy sourcing updates.

Transformation of facility-level data into product and category-level reports.

Audit-ready dashboards providing real-time energy and emissions status.

Carbontology: Live Energy Insights Across Your Operational Footprint

Embark on a journey towards a more sustainable future by implementing robust Energy Carbon Intelligence practices within your organization. Our comprehensive four-step process provides a clear roadmap for integrating and leveraging energy data to drive meaningful reductions in your carbon footprint.

Begin by establishing a centralized system for collecting and integrating energy consumption data across all your facilities and operational regions. This crucial first step lays the foundation for accurate analysis and reporting. Ensure compatibility with various data sources and formats to create a unified view of your energy landscape. Consider implementing automated data pipelines for continuous and reliable data acquisition.

Step 2: Defining Custom Energy Properties for Enhanced Granularity

Elevate your energy analysis by defining Custom Properties that capture critical details beyond basic consumption figures. Specify the energy type (e.g., electricity, natural gas, heating oil) for each data point to enable granular tracking and emission factor application. Crucially, define the renewables percentage associated with your electricity consumption, reflecting the proportion of energy sourced from renewable sources like solar, wind, or hydro. Furthermore, integrate emissions factors specific to your energy sources and geographical locations. These custom properties are essential for accurate Scope 2 emissions calculations and informed decision-making.

Step 3: Strategically Mapping Energy Sourcing to Scope 2 Emissions Calculations

Accurately account for your indirect emissions from purchased or acquired electricity, steam, heat, and cooling (Scope 2) by meticulously mapping your energy sourcing data to the defined Custom Properties. This involves linking specific energy consumption data with the corresponding energy type, renewables percentage, and emission factors. This detailed mapping ensures that your Scope 2 calculations accurately reflect your energy procurement strategies and the environmental impact of your energy choices. Leverage this information to identify opportunities for transitioning to cleaner energy sources and reducing your indirect emissions.

Step 4: Comprehensive Performance Tracking and Reporting

Gain valuable insights into your energy performance and track progress towards your sustainability goals through comprehensive dashboards, detailed audits, and streamlined CSRD (Corporate Sustainability Reporting Directive) deliverables. Visualize key metrics, identify areas for improvement, and generate accurate reports for internal stakeholders and external reporting requirements. Regularly audit your energy data and calculations to ensure accuracy and identify potential discrepancies. Utilize the insights gained to refine your energy procurement strategies, implement energy efficiency measures, and demonstrate your commitment to environmental responsibility through transparent and reliable reporting aligned with frameworks like the CSRD.

Book a demo with Carbmee to build live Scope 2 visibility into your energy procurement strategy.

Unlocking the Power of Energy Carbon Intelligence with Custom Properties

Download the Sustainability Intelligence Report 2025 to benchmark renewable energy maturity and reporting.

Download the Sustainability Intelligence Report 2025

Your share of renewable energy is more than a metric, it’s a strategic lever for Scope 2 emissions reduction, compliance, and financial resilience. With Carbmee, you can:

Automate Scope 2 reporting and CSRD compliance

Strengthen your energy and emissions strategy

Don’t let data gaps slow you down. Model energy carbon data with precision—Carbmee is ready to help.

Optimize Scope 2 and Procurement with Renewable Energy Insights

Renewable Energy Metrics for Scope 2 and CSRD Reporting | Carbmee

Learn how to model renewable energy data to reduce Scope 2 emissions, align with CSRD, and optimize procurement using Carbmee’s EIS.

Share of Renewable Energy: A Carbon Metric for Smarter Energy Procurement

Collecting supplier emissions data is just the first step - turning it into actionable reduction strategies is where real impact lies. Carbmee’s approach demonstrates how organizations can move from static assumptions to measurable, actionable insights.

Secondary data, such as average emissions or spend-based calculations, provides a rough estimate but often misrepresents actual supplier practices. Primary data - bills of materials, energy sources, and waste management - offers the granularity needed to identify real hotspots and reduction opportunities. However, traditional approaches struggle: about 70% of companies report that lack of supplier emissions data is one of the most significant challenges in measuring Scope 3 emissions, highlighting why primary data is essential for credible carbon accounting (State of Supply Chain Sustainability Report 2025). Collecting this data requires clear guidance, training, and ongoing support for suppliers.

Manual collection via spreadsheets is no longer feasible for thousands of suppliers. Carbmee’s supplier portal provides a scalable solution for data input, validation, and analytics. Suppliers can directly upload verified Product Carbon Footprints (PCFs) or input primary activity data, enabling companies to track emissions at the SKU, material, and supplier level. Built-in validation ensures data accuracy and comparability.

As Frank Wenig, Head of Research and Development at Steinbeis Papier, explains:

“At Steinbeis Papier, we want to manage our environmental impact with the same level of precision as we manage our business. The EIS™ will help us gain complete transparency into the carbon emissions of our products and everything that goes into them, at the highest level of granularity. From the massive amounts of secondary fibers down to the last drop of retention aid.”

Leveraging Technology for Scalable Data Collection

Once primary data is collected, analytics enable companies to pinpoint the suppliers, materials, or processes contributing most to emissions. By modeling alternative scenarios - switching materials, changing suppliers, adopting renewable energy - organizations can prioritize interventions with the highest impact. Internal functions like procurement and R&D collaborate to assess feasibility and design supplier-level reduction pathways.

Identifying Hotspots and Driving Reduction

Beyond data collection, insights drive meaningful collaboration. Companies can support suppliers in reducing emissions through guidance, webinars, and benchmarking against peers. Over time, iterative measurement ensures progress, informs strategy, and strengthens supplier relationships. This approach transforms Scope 3 from a compliance challenge into a strategic lever for sustainability and cost management.

By connecting accurate supplier data to reduction strategies, companies gain visibility, control, and decision-making power. Not only does this accelerate emissions reduction, but it also enhances market positioning, supplier relationships, and long-term resilience turning Scope 3 challenges into actionable opportunities.

Turning Supplier Data into Actionable Carbon Reduction Pathways | Carbmee

Move beyond estimates. Turn primary supplier data into actionable Scope 3 insights using scalable technology, hotspot analysis, and data-driven reduction pathways.

Life Cycle Assessment (LCA) is a methodology used to evaluate the environmental impact of a product or service throughout its entire life cycle. This includes all stages, from raw material extraction and processing, production, distribution, use, and disposal. LCA helps to identify the environmental impacts of a product or service and provides insight into areas where improvements can be made to minimize negative impacts on the environment.

LCA is governed by the international standard ISO 14040, which outlines the principles and framework for conducting LCA. This standard provides guidelines for conducting a life cycle assessment, including the definition of the scope, the selection of the assessment methods, and the interpretation of the results. There are many LCA tools and software available that comply with the ISO 14040 standard, such as OpenLCA, Gabi LCA, and other life cycle assessment software.

When done right, LCA can be a powerful tool to uncover both emission hot spots, a key environmental impact of products or services, but also reduction potential throughout their life cycle. This approach to assessing impact allows decision makers to compare alternatives and to select inputs with the lowest impact on the environment.

LCA is useful for measuring a company's GHG emissions impact because it provides a comprehensive assessment of the entire life cycle of a product or process. This methodology can identify "hot spots," or areas of a product's life cycle that have a high GHG emissions footprint. For example, LCA can help companies understand the carbon footprint of their supply chain, including the energy used to extract and transport raw materials. By identifying these hot spots, companies can focus their efforts on reducing GHG emissions in the areas that have the greatest impact. 

LCA also enables comparisons between different products or processes, helping companies make informed decisions about the environmental impact of their choices. For example, a company can use LCA to compare the carbon footprint of two different paper products to determine which has a lower environmental impact.

Why is LCA useful for measuring a company's GHG emission impact?

Manufacturing companies use LCA to evaluate the environmental impact of their products and services, from the extraction of raw materials to the final disposal of the product. For example, a furniture manufacturer could use LCA to assess the environmental impact of a new chair design. The assessment would include the environmental impacts of the raw materials used to make the chair, the energy consumed during production, the transportation of the materials and the finished product, the use phase of the chair, and the disposal of the chair at the end of its life cycle. LCA can provide valuable insight into the potential environmental impacts of a product or process and help companies identify areas for improvement.

What is an example of how a manufacturing company would use LCA?

With classic LCA solutions, the accuracy of results for any individually analyzed product is very high. However, to achieve company-wide net-zero and regulatory compliance, there are significant drawbacks to consider, such as:

your LCA expert(s) is working in a silo, increasing communication friction and alignment with other teams across your organization

there is no automated way to compare various carbon footprints to efficiently determine hot spots. When using GaBi, for example, this process is manual, time-intensive, and not scalable.

once you have manually identified hot spots, any comparison of materials or suppliers is highly manual and there are no software-generated recommendations for alternatives – making it less scalable.

carbmee EIS™ Carbon Management solution takes the trusted Life Cycle Analysis methodology and uses automation and AI technology to create tailored platforms, purpose-built for enabling industry enterprises to achieve impactful decarbonization. 

Collaboration for better engagement: the EIS™ is the single source of truth for the entire company emissions and enables LCA teams to request information about specific products’ materials, suppliers, transportation, and production processes from multiple teams. 

Certified methodology: our product Carbon Footprint (PCF) methodology is certified by TÜV and enables companies to measure and report entire product portfolios compliant with ISO 14064 and GHG Protocol.

Corporate Carbon Footprint (CCF) Integration: the EIS™ optimizes the demands from your sustainability team and re-use the work done for PCFs on CCF reports, reducing time and cost.

Supplier Data Integration: our holistic solution that integrates not only scope 1, 2 and 3 emissions on the PCF modeling but analyzes the entire supply chain and highlights supplier hot  spots so the company can identify and tackle areas with high reduction potential. 

Scenario planning: the EIS™ enables the customer to benchmark alternative material, transportation modes, production processes and more and plan high return-on-investment reduction initiatives and work on a product redesign that leads to competitive advantage. 

Share exactly what you want to: with EIS™, companies can share PCF models directly with customers and hide sensitive data if needed. This increases customer trust and leads to market advantage.

Databases suited to your industry: different than other market solutions, our solution enables companies to use multiple databases and customize emission models for their specific industry context.

Platform customization: duplicate product models and customize it as needed. For example: localize it based on the region it was manufactured, supplier, material, energy used on the manufacturing site, and so on, drastically reducing time spent on modeling.

If your company is looking for a solution to as its source of truth If your enterprise is ready to level up its sustainable transformation, then talk to one of our industry experts to find out how carbmee can help. 

The best-of-breed solution that’s like LCA…but better

As environmental sustainability becomes an increasingly critical concern for businesses worldwide, companies are looking for reliable ways to measure their impact on the environment. One widely used approach is Life Cycle Assessment (LCA), which provides a comprehensive analysis of the environmental impact of a product or service from cradle to grave. Explore what LCA means, how it is used by manufacturing companies, why it is useful for measuring a company's GHG emissions impact, and how carbmee’s solution takes LCA and makes it better.

All about Life-cycle assessment (LCA) | Carbmee

Explore what LCA means, why manufacturers use it, and how carbmee’s approach elevates LCA to measure and reduce GHG impact more effectively.

The term greenwashing was first coined in 1986 by environmentalist Jay Westerveld. He noticed a hotel asking guests to reuse towels “to save the planet” while simultaneously expanding its operations into sensitive ecosystems revealing a mismatch between marketing and reality.

Today, greenwashing refers to when companies present themselves as more environmentally friendly than they actually are, often using vague, exaggerated, or misleading claims in marketing, branding, or investor communications.

At a time when climate goals are urgent and global emissions need to be halved by 2030, greenwashing erodes trust, misleads well-intentioned consumers, and gives companies a free pass to delay real action. It also creates unfair market conditions, companies investing in real decarbonization must compete with those simply marketing sustainability.

Why greenwashing is harmful to climate action

At first glance, greenwashing and genuine sustainability can look very similar. Both often use the language of climate action, net-zero goals, and responsibility. The key difference lies in substance versus storytelling.

Greenwashing focuses on perception. It prioritizes how a company appears to stakeholders, often relying on carefully crafted messaging, selective data, or vague promises that sound positive but lack measurable impact. Real sustainability, on the other hand, is rooted in action, evidence, and accountability. It requires companies to measure their environmental impact honestly, disclose it transparently, and take concrete steps to reduce emissions over time.

Here’s how they differ:

Greenwashing: Vague marketing claims
Real sustainability: Verified environmental data

Greenwashing: Focused on brand image
Real sustainability: Focused on emissions reduction

Greenwashing Explained: What It Is and Why It’s a Problem | Carbmee

Greenwashing misleads the public with false sustainability claims. Learn how to spot it, avoid it, and why it undermines real climate progress.