In today’s rapidly evolving corporate sustainability landscape, leaders like Gunter Schichl are pushing the boundaries of environmental management. As sustainability managers strive to meet ambitious decarbonization goals, Gunter’s insights provide a blueprint for integrating intelligent sustainability software, automated sustainability reporting, and carbon footprint tracking into their strategies. This article explores Gunter's approach to overcoming the challenges of decarbonization, the critical role of data, and the importance of starting even when perfection is out of reach.

The Crucial Role of Data in Decarbonization

As companies around the globe work to decarbonize their operations, the accuracy and precision of the data they collect can make or break their efforts. Without the right data, businesses are flying blind, unable to effectively measure their impact or the progress they’re making. In a world increasingly defined by environmental accountability, robust data collection is no longer optional—it’s a necessity. Gunter Schichl emphasizes that precise and granular data is the cornerstone of effective decarbonization:

 "The most important aspect of steering decarbonization efforts is data, as surprising as it might sound. We need to transition from spend-based to consumption-based data, manage the granularity, and control the effort involved. Without accurate, granular, and timely data, it’s impossible to effectively measure the impact of our decarbonization initiatives. Currently, eighty percent of my effort is focused on getting the data right because it’s the biggest challenge we face."

The significance of robust data management is underscored by a recent survey conducted by ENGIE Impact, which found that only 3% of business leaders across 21 sectors and 23 countries reported having a single source of truth for their sustainability data. This highlights the considerable difficulties companies face in collecting and managing accurate data crucial for decarbonization efforts. Furthermore, while two-thirds of companies use digital tools to manage their operational emissions (Scope 1 and 2), only about one-third (35%) invest in technology to track Scope 3 emissions. This disparity underscores the necessity of comprehensive data collection across all emission scopes for effective decarbonization strategies, reinforcing Gunter's focus on moving from traditional spend-based approaches to more precise consumption-based models.

As Gunter points out:

"We are in the process of setting up the tooling to allow us to capture data more accurately and steer our decarbonization efforts. Footprint Intelligence is helping us establish a common model based on consumption, not spend-based." 

Navigating the Complexities of Carbon Measurement

Achieving consistency in carbon measurement is one of the toughest challenges in the realm of sustainability. Despite growing awareness, a recent survey revealed that only 10% of companies are comprehensively measuring their emissions across Scope 1, 2, and 3. Alarmingly, respondents estimate a 25% to 30% average error rate in their emissions measurements (CO2 AI by BCG Carbon Emissions Survey 2022).

These statistics underscore a significant problem: the widespread inconsistencies in how companies approach carbon measurement, particularly across different scopes and infrastructures. This lack of uniformity can lead to major discrepancies in reported data, which ultimately hinders the ability to make informed and effective sustainability decisions. As Gunter Schichl points out, the diversity of IT infrastructures further exacerbates these challenges:

"The complexity of carbon measurement arises from the different hosting models for IT infrastructure—whether on-premises, cloud, or SaaS and PaaS providers. We aim to create a comparable carbon model based on actual consumption, rather than spend, to ensure consistency. Without this, we’re comparing apples and oranges, making it difficult to make informed decisions."

These inconsistencies, as highlighted by Gunter, directly impact a company’s ability to accurately assess and reduce its carbon footprint. The challenge isn't merely about gathering data, but about ensuring that the data is precise, comparable, and actionable across all platforms and emission scopes. Gunter advocates for the adoption of consumption-based models, which offer greater accuracy and a clearer understanding of the real environmental impact. This precision is increasingly crucial as organizations face mounting pressure from stakeholders to report their carbon emissions transparently and to develop effective decarbonization strategies based on reliable data.

The Power of Starting Now and Leveraging Innovation

Despite the complexities, Gunter Schichl strongly advocates for immediate action, even if the perfect system is not yet in place. His advice is simple: just start, even if you’re not yet equipped with a consistent model or if you need to begin with spend-based data. The cultural shift required for decarbonization takes time, and it’s important to build momentum by establishing a base of supporters within the company. It's not about achieving perfection from the outset; it’s about integrating decarbonization efforts into the corporate strategy so that it becomes a long-term commitment rather than just a voluntary initiative.

This advice reflects a broader truth: sustainability is as much about organizational change as it is about technology and data. Building a decarbonization framework requires buy-in from all levels of the company, and that kind of cultural shift doesn’t happen overnight. Starting with imperfect data or incomplete tools isn’t a failure—it’s a necessary first step. By embedding sustainability into the core business model, companies can ensure that their decarbonization efforts are grounded in a foundation that evolves over time. This fosters a culture where sustainability goals are continually refined, adapting to emerging technologies and methodologies as they become available.

Gunter also emphasizes the significant role that smaller, more innovative players have in driving sustainability forward. He explains, “Don’t underestimate the small and innovative players. As you know, especially with CSRD, the big names also give a lot of surety for their purchasing. But no, I think smaller companies in this respect have the agility and the delivery, but also the quality of delivery that you need right now... I think we analyzed more than a dozen players, Footprint Intelligence came out victorious. So I think that's the best testimony I can give today.”

This highlights how agile sustainability platforms can make a meaningful impact, especially when larger, more traditional solutions may lack the flexibility required to meet the unique challenges of decarbonization.

This perspective is particularly relevant when considering the global economic role of SMEs (Small and Medium Enterprises). According to the World Bank, SMEs account for about 90% of businesses and more than 50% of employment worldwide. Not only are these enterprises the backbone of the global economy, but they are also essential players in the sustainability landscape. Their ability to quickly adopt innovative approaches and respond to market demands makes them vital contributors to global decarbonization efforts. By leveraging their inherent strengths, SMEs can spearhead the implementation of sustainable business solutions at a pace and efficiency that larger corporations may struggle to achieve.

Conclusion: Taking Action in Steering Decarbonization Efforts

Gunter Schichl’s insights provide a powerful roadmap for sustainability managers navigating the complex terrain of decarbonization. By prioritizing data accuracy, embracing the complexity of carbon measurement, and taking immediate action, even with imperfect tools, sustainability leaders can drive significant progress.

By establishing common, consumption-based carbon models and leveraging innovative solutions, businesses are better equipped to steer their decarbonization efforts effectively. Gunter’s approach reminds us that sustainability is not just about technological tools—it’s about creating a culture of sustainability embedded in the corporate strategy, supported by reliable data and innovative partners.

As Gunter emphasizes, "It’s crucial to start, even if the data isn’t perfect.” The journey toward decarbonization may be complex, but with the right tools and strategies, it's a journey that every company can—and must—embark on.

The views and opinions expressed in this blog are solely those of the author and do not reflect the official policy or position of any company.