Excel vs Carbon Accounting Software: Which is Better?

Carbon footprint calculation is a critical tool for companies striving to reduce greenhouse gas (GHG) emissions and respond to stakeholder information requests. Many companies start with Excel, but as stakeholder demands and calculation needs grow, Excel’s limitations quickly become apparent. Let’s examine the advantages and disadvantages of using Excel versus a dedicated carbon footprint calculation tool, such as Biocode, and discuss when transitioning to software makes sense.

Excel in Carbon Footprint Calculation

Advantages of Excel

• Flexibility: Enables customized solutions tailored to specific needs.
• Familiar Tools: Most professionals are proficient with Excel, making it an easy starting point.
• Cost-Effectiveness: Excel is often already available, avoiding additional software acquisition costs.

Challenges of Excel

• Errors: Human errors can occur in formulas, input data, and result interpretation.
• Lack of Automation: Time-consuming manual updates and report generation.
• Outdated Information: Updating Excel models and emission factors requires expertise and manual effort, as science and recommendations evolve.
• Data Retrieval and Documentation: Searching for emission factors can be surprisingly time-intensive, and proper documentation of sources and model years is essential for reliability.
• Scalability: Managing data becomes increasingly challenging as data volumes grow.

Biocode is a low-threshold tool for companies that are just starting their carbon footprinting projects, who value ease of use and don’t have that expertise and know-how in-house.

Linda Forss, Procurement Manager, Anton&Anton

Why Software is a More Efficient Solution

Advantages of Carbon Footprint Calculation Software

• Comprehensive Emission Factor Database: Always up-to-date and auditable emission factors enable fast and effortless data retrieval.
• Automated Calculation Updates: Software providers handle updates to calculation models as science and regulatory requirements evolve.
• Audit-Readiness: Software includes necessary documentation for audits.
• Enhanced Reporting: Built-in reports based on standards include details such as biogenic vs. fossil emissions, location- and market-based splits, and breakdowns by gas type.
• Repeatability: Standardized processes ensure reliable results and consistency year after year.

With Biocode, you don’t have to start from scratch. In the other tools we looked at, you have to create the databases yourself before you can really get started.

Sari Torpström, Quality Specialist, Pakkasmarja Oy

When Should You Transition to Software?

1. Increasing External Demands

Pressure from regulators, customers, and investors demands reliable and transparent calculations and reporting.

They say, “If you want to deliver products to us after X date, you need to take these actions and set these targets.”

Biocode Customer Interview

For companies lacking resources to hire consultants or in-house environmental assessment experts, software ensures calculation reliability.

📎 Furter reading: Choosing between a digital carbon footprint calculator & consulting project

2. Growing Complexity of Calculations

Advanced environmental impact assessments require accuracy and expertise. As calculation models and emission factors evolve, Excel models can quickly become outdated.

3. Enhanced Reporting Needs

Stakeholders expect detailed and standardized reporting formats. For example, Scope 3 emissions accounting for 15 categories and energy consumption splits (location- vs. market-based) are built into software solutions. Additionally, documenting emission factor sources, modeling years, and contributors is easier with software.

4. Better Data Security and Version Control

Software ensures data security and offers robust version control. It also supports restricted access and data anonymization, where needed—for instance, anonymizing primary production emissions data provided by farmers.

5. Systems Integration

Companies benefit from seamless data transfers between systems. Integration allows reuse of existing data, enhancing efficiency.

Conclusions

While Excel is a functional starting tool for carbon footprint calculation, its limitations become evident as requirements grow. Software solutions, such as Biocode’s carbon footprint calculator, provide scalable, efficient, and secure approaches that help companies meet stakeholder demands and manage complex calculations.

The question of “Excel vs. carbon accounting software” doesn’t have a one-size-fits-all answer. However, transitioning to carbon footprint software is an investment in credibility, efficiency, and growth.