The race to Net Zero, along with increasingly complex regulations and growing consumer interest in environment-friendly business practices, has led to a dramatic rise in the number of companies proposing strategies to reduce the carbon footprint of one’s enterprise. To popularize carbon footprint management, Greenly provides an alternative to the consultancy-led process of data collection and analysis, by deploying simple and intuitive software to this end. Readily compatible with most corporate data sources, Greenly simplifies the move from snapshot analytics to continuous carbon monitoring. With more than 2,000 corporate clients in Europe, Greenly has achieved significant growth in the American market, where awareness of environmental concerns is gradually on the rise.
A strategy geared towards the needs of businesses
Greenly indicates that the demand for carbon footprint analysis has risen by 300% from 2022 to 2023, reflecting the growing recognition of the importance of measuring and reducing carbon emissions. To meet an ever-increasing demand and to comply with new sector expectations, Greenly has evolved its service offering by initially conducting Greenhouse Gas (GHG) assessments, followed by various other measures and strategies to reduce carbon footprint (Green IT, Life Cycle Analysis, SBTI, CSRD, etc.). Training employees on the challenges of global warming is a key component of its offering. To accelerate progress, Greenly is increasingly collaborating with strategic consulting firms that use its platform, and supports executives on the ground.
An encouraging outlook for 2024
Greenly remains committed to its mission of supporting companies in their environmental transition. For a long time, only Scope 1 emissions (direct emissions) and Scope 2 emissions (indirect emissions relating to the purchase and use of energy) were evaluated , accounting for only 20% of a company's total carbon emissions. By incorporating scope 3 emissions (indirect emissions throughout the company’s value chain), companies now benefit from a more comprehensive view of their actual emissions, allowing them to pivot to ‘green’ suppliers. By driving this change, Greenly triggers a virtuous cycle wherein both the purchasing company and the supplier are mindful of their environmental impact.
Greenly now ensures support for companies in adhering to new directives, particularly SB253 voted in California in 2023 or the EU Corporate Sustainability Reporting Directives, with which at least 5000 US companies will need to comply. These new regulations will require companies with more than $1Bn turnover in the US or more than 500 employees in the EU to report their environmental, social, and governance impact starting from 2025, before the threshold lowers to 250 employees in 2026. To assist them in coping, Greenly is extending the digitalization approach that has appealed to its clients for GHG reporting. The platform now offers a tool to easily conduct a double materiality analysis. This involves assessing the impact of ESG factors on financial performance and the impact of the company's activities on the environment and society.
For Alexis Normand, CEO and co-founder of Greenly: "New regulations are compelling more than 5,000 US companies, the majority of which are mid-market companies, to report their ESG impact. CSRD, for instance, includes more than 1,500 control points that US companies could have to report as soon as 2025. Many are apprehensive about this regulatory shock and the associated costs. However, it's essential for all to be able to track their impact to build a more sustainable growth. At Greenly, we offer technological solutions that make this reporting affordable, simpler and creates value for companies. We do this by automating data collection and analysis as much as possible, in order to recommend precise actions. The good news is that the digitization work carried out on carbon emission analysis is advancing our analysis of other indicators: biodiversity, water, pollution, and circularity."
The share of carbon emissions saved in 2024 is also expected to experience significant growth, estimated at over 10%, taking into account companies that have conducted their carbon footprint assessment and are beginning to implement relevant strategic recommendations.
