Lack of data and lack of data maturity risk holding back decarbonisation. That has emerged from survey after survey.
CEOs worldwide report missing crucial information concerning their emissions and/or their energy use, or lack the know-how to gather data, integrate it into their business, and learn from it.
This is to say that businesses are missing out on an opportunity to position themselves as leaders in environmental stewardship, bring down long-term operating costs, access green finance, stay abreast of climate regulations and gain a more comprehensive understanding of what is going on within their business and along their supply chains. Then there’s the small matter of the climate challenge.
Data abounds
The issue isn’t a lack of data, but rather a widespread misunderstanding of which data to use and how to apply it. Advances in space and climate technology have led to an abundance of information, with satellites capturing terabytes of raw images daily. Climate intelligence companies then process this data, creating usable planetary insights for organizations. The challenge lies in effectively utilizing this wealth of information.
Companies are using it. National and supranational governments are using it. Thanks to data, we can predict and monitor fires and flooding, deforestation and biodiversity, emissions of carbon dioxide and methane, construction of solar panels and crypto facilities.
What data can do
Governments can leverage emissions data to shape and enforce policies, exemplified by the EU’s 2024 methane regulations. Companies committed to decarbonization can utilize this data to measure direct and indirect emissions throughout their supply chain, conduct hotspot analyses, and develop targeted, cost-effective strategies for reducing emissions at high-impact points.
They can track progress accurately as they execute that strategy and use the data both internally and in their external communications to stakeholders. Working with climate intelligence companies, they can become truly data-driven in how they approach decarbonisation.
Missed opportunities
Without data, in contrast, companies resemble someone stumbling around in the dark. Carbon footprint analyses across Scopes 1 and 2 and 3 – corresponding respectively to direct emissions, emissions from purchased or acquired energy, and emissions from along the value chain – remain incomplete.
Without baseline data, decarbonization targets become vague or inaccurate. Progress becomes unmeasurable, strategies can’t improve, and complacency may lead to non-compliance with regulations like the EU’s CSRD. Essentially, data is crucial for effective decarbonization efforts.
Obstacles to adoption
Despite tragic scenes in Los Angeles and Valencia, the climate crisis may lose political priority, potentially encouraging companies to delay action as governments relax environmental regulations.
Strict climate disclosure rules may discourage companies from adopting data that could reveal underperformance. The challenge of tailoring integration also contributes to resistance.
Why?
Even if the climate crisis weren’t to intensify – and all the evidence says otherwise – there are excellent reasons to decarbonise, as I’ve suggested above. Cost savings, increased productivity, greater organisational knowledge and reputational benefits await companies who do it well.
Organisations should do two things: first, to see data integration and data-led decarbonisation as a huge opportunity that will sooner or later become an obligation and, secondly, to work with partners with the know-how to ‘bake’ data into their operations.
