Carbon accounting & offsets

→ SaaS startups make carbon accounting more accessible by providing a faster, cheaper alternative to elaborate life cycle assessments.

→ But there’s a trade-off between price and accuracy, as many SaaS providers rely on averages and proxies to fill data gaps. As startups scale, they may take more care to ensure greater accuracy even at a comparatively lower price point.

→ The quality of offsets has always been a sticking point. Startups are using increasingly sophisticated tech for verifying companies’ efforts, like applying machine learning to satellite imagery.

→ But that still won’t be enough. For example, in the case of reforestation, on-the-ground measurements are vital to accurately monitor the number of new trees and their carbon absorption.

→ As more and more carbon accounting startups emerge, some are honing in on specific industries with their software, from fashion to heavy industry.

→ The advantage of this, they argue, is to generate more robust data and better benchmarks for customers by contrasting their performance with directly comparable peers.

→ Some startups are already combining different services into one, like carbon offset verification and marketplaces.

→ In the future, startups may integrate even further to originate projects with landowners directly and prevent middle men from taking a cut of their revenue.