While seemingly every industry is developing artificial intelligence tools to streamline processes and improve efficiency, few industries have a better use case than carbon accounting. The flexibility of new AI tools, the ability to analyze extensive data sets, and the power to make accurate estimates when necessary all demonstrate the importance of new computing tools in this sector. By utilizing computing power to track supply chain and product emissions, companies will gain a better understanding of total emissions, where these emissions originate, and what policies can be implemented to reduce them.
The pressure to develop tools for carbon accounting varies across different regions. New carbon border adjustment mechanisms (CBAM) in Europe require importers to the continent to provide accurate carbon reporting data by 2026. Emissions accounting is in growing demand, as in 2022, only around 10% of emissions were measured by companies, and, unsurprisingly, only around 14% of companies were able to reduce emissions at a pace matching their benchmarks. Whether as a matter of principle, as a response to shareholder pressure, or to meet new regulations, companies will need to start taking carbon emissions more seriously.
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