IBM Introduces Envizi: AI-driven Software for Scope 3 GHG Emissions Reporting
IBM has announced the launch of its new software, IBM Envizi: Scope 3 GHG Accounting + Reporting, which utilizes artificial intelligence to facilitate the calculation and analysis of Scope 3 greenhouse gas (GHG) emissions. This innovative technology is designed to streamline the process of tracking and reporting emissions that occur outside of a company’s value chain.
Scope 3 emissions, which encompass various categories such as waste generated by operations and end-of-life treatment of sold products, represent a significant portion of a company’s overall emissions. However, it can be challenging for organizations to accurately track and report these emissions due to their complex nature.
IBM Envizi aims to address this issue by leveraging AI to aggregate and manage the data required for emissions calculations. The platform covers all fifteen Scope 3 categories and offers a GHG emissions calculation engine that includes over 40 methodologies and templates. This calculation engine enables companies to determine their emissions hotspots and visually demonstrate the impact to stakeholders.
According to IBM, a majority of companies consider themselves proficient in sustainability data tracking, but less than half are prepared to report on Scope 3 emissions. The integration of Envizi with financial or enterprise resource planning (ERP) systems allows for the categorization of spending data, helping organizations overcome reporting obstacles.
The importance of Scope 3 emissions reporting is underscored by recent proposed legislation that would make it a requirement for companies with revenues exceeding $1 billion. Furthermore, 63% of the largest 500 U.S. companies voluntarily report on Scope 3 emissions, highlighting the growing interest in disclosing GHG emissions from all emissions sources.
Christina Shim, the Vice President and Global Head of Product Management and Strategy for IBM sustainability software, emphasized the need for robust data management, calculation, and reporting processes as regulatory requirements and external interests continue to drive organizations to disclose GHG emissions, including those from Scope 3.
In conclusion, IBM’s introduction of Envizi: Scope 3 GHG Accounting + Reporting with AI capabilities is poised to revolutionize the tracking and reporting of Scope 3 emissions. By streamlining the process and providing accurate insights into emissions hotspots, this software enables organizations to better understand the full extent of their climate impacts. As sustainability reporting becomes increasingly important, it is clear that innovative solutions like IBM Envizi will play a crucial role in helping companies meet emissions targets and address environmental challenges.
