Investments in climate management software will reach USD 1.7bi in 2023
The organizational world has many peculiarities. It is interesting to observe how a secondary theme gains scale until it becomes central and how automation accompanies this movement. This is exactly what is happening with climate management. If before inventories were carried out in spreadsheets, now the adoption of technological solutions for climate management – which goes far beyond the inventory – is becoming essential. And, as such, they gain budget reinforcements.
The report “2023 Spend On Carbon Management And Climate Risk Software”, published by Verdantix in February 2023, shows that the estimated spend on solutions for climate management will reach 1.7 billion dollars in 2023.
In addition to increasing data analysis capabilities in the management of greenhouse gas (GHG) emissions and climate risk, other motivators for companies to seek such solutions are the need for transparency and integrity in the relationship with stakeholders (mainly investors), market pressure, brand reputation management, and competitiveness. As well as adaptation to compliance practices and legal obligation.
In this context, the research indicates that adapting to rules and frameworks related to the climate is a priority among companies’ costs. According to Connor Taylor, Industry Analyst at Vedantix, “climate reporting rules emerged as the most significant driver of ESG and Sustainability spending in 2023. 46% of the 400 executives surveyed named climate rules as the first or second most significant spend in the future”.
In Brazil, the issue of climate change has advanced at the Board of Directors and at executive levels. Answered by 104 board members, the report “Board scorecard: the role of boards in the face of climate impacts and the net zero strategy”, published by the IBGC (Brazilian Institute of Corporate Governance) in October 2022, showed that 35.6% of boards address the topic at least four times a year, although 40.4% claim that there is no clarity between the responsibility of the Board and the responsibility of the executive team for decisions to reduce GHG emissions.
Carla Leal, Director of Digital at WayCarbon evaluates: “with the growth of responsibilities for Net Zero strategies on the part of the Boards of Directors, it is natural that companies start to treat the subject in a more structural way. The creation of new organizational structures, the provision of financial resources and the adoption of technological solutions are part of the mechanisms that need to be implemented to enable climate management and governance”.
Investment growth in Climas and Move more than doubled in the last two years
The adoption of Climas, ESG and climate management software of WayCarbon, by different types of organizations has grown a lot in the last two years. Increasingly, companies of different sizes and segments are adopting the solution for climate management, extending its scope to their international operations as well. Currently, the tool’s users are spread across 37 countries.
Complementing its offer for climate management based on the understanding that climate risks are extremely relevant strategic issues in this agenda, WayCarbon developed MOVE® (Model for Vulnerabilty Evaluation). It is an integrated computational platform for assessing risks associated with climate change, based on the integration of climate models and socioeconomic and GHG concentration scenarios on multiple spatial and temporal scales.
“WayCarbon is the only company on the market that delivers both tools: for GHG management and for climate risk management. We have more than doubled the investments in our technology team from 2022 and at the end of 2023, our customers will be surprised by the new modules and the increase in the functionalities of both products”, says Carla Leal.
The focus of WayCarbon‘s Digital area is to provide enabling technologies so that companies can accelerate their climate ambitions, diligently contributing to limiting global warming to levels recommended by science.
