The Power of Data in the Low-Carbon Transition: Overcoming Challenges and Leveraging Technology

As we continue to advance towards a more sustainable future, the role of data to support the decarbonization journey cannot be overstated. As demands for data to support effective decision-making grow, accurate and comprehensive data is the backbone of an effective carbon reduction and management strategy. This enables an organization to meet regulatory and stakeholder needs, set targets, monitor progress, and make informed decisions. Decarbonization is a journey, and a strategic approach to acquiring, managing, and using data requires a strategic approach.

The Importance of Data in Decarbonization

Data is crucial throughout the entire decarbonization process. From identifying emissions sources to implementing and measuring decarbonization outcomes, without accurate data that is translated to information, organizations struggle to not only measure their carbon impact but also monitor the effectiveness of their initiatives.

Recent research suggests that nearly one-third of sustainability managers spend over 10% of their time accessing and consolidating data as part of their roles. This significant time investment underscores the inherent complexities of data management for sustainability and the importance of ensuring that data is managed effectively and efficiently.

Overcoming Challenges: A Strategic Approach

While sustainability leaders widely recognize the importance of timely and accurate data, managing the information required to support decarbonization efforts presents several challenges. These include collecting data at the correct frequencies, handling data complexities, and leveraging technology across disparate systems. Additionally, many organizations lack the budget, dedicated resources, skill sets, and often niche expertise needed in areas such as supply chain emissions.
To overcome these challenges, a strategic approach is essential. This involves:

Setting clear targets and actionable roadmaps
Utilizing technology to your advantage
Leveraging expertise and building the team
Ensuring organizational alignment

The Gap Between Data Needs and Capacity

There is a growing gap between the need for comprehensive decarbonization data and the capacity or tools available to deliver it. Many organizations struggle with data management, which is required to support their sustainability objectives. According to recent studies, approximately half of sustainability leaders are frustrated by data complexity, manage ten or more different sources of emissions data, and feel that their data is not comprehensive enough to inform strategy.

Best Practices for Managing Data Complexities

To address these challenges, organizations can adopt several best practices:

Automate data collection as much as possible
Deploy real-time and predictive modeling
Collaborate across the entire value chain
Establish governance to ensure accurate and auditable reporting
Get granular on the data when needed

A Technology-driven Approach to Decarbonization

At least today, technology solves a data-driven decarbonization strategy's inherent complexities and challenges. Though, we still need to focus on people and processes to ensure success, a technology-driven approach to carbon management offers numerous benefits. It enables broader, deeper, and more automated reporting, essential for meeting regulatory requirements and stakeholder expectations. Technology also facilitates real-time and predictive modeling, providing organizations the insights they need to make proactive decisions.

World Kinect's myWorld Carbon Management solution exemplifies the power of a technology-driven approach. The platform offers comprehensive reports across emissions scopes, forecasts emissions, tracks progress to targets, and quantifies the impact of voluntary reductions. By combining a leading technology solution with World Kinect’s team of carbon experts, organizations can extend their internal capabilities and manage the lifecycle of emissions reporting more effectively.

The bottom line is that data's role in decarbonization is pivotal. By adopting a strategic approach, leveraging technology, and utilizing solutions like myWorld Carbon Management, organizations can overcome the challenges of managing sustainability data and make significant strides toward a low-carbon future.