Most companies trying to reduce their emissions face the same early problem: the data they have is the wrong kind.
Spend-based carbon accounting is a common starting point. It is fast to set up, and it uses data that almost every company already has — procurement spend by supplier. But as Tarik Moussa, Sustainability Advisor at Watershed, puts it:
“If all you have is the amount of money you have spent on a supplier, you’re not able to capture any nuance on the exact type of products you’ve bought from that supplier, which means any decisions you make to shift money towards greener products does not result in a reduction in your Scope 3 measurement.”
In other words: spend-based data is a reasonable foundation for reporting, but it is less well-suited to the targeted reduction decisions that make a difference.
The gap between measuring emissions and actually reducing them is the problem Watershed was built to address.
The Challenge: From High-level Accounting to Product-level Decisions
Watershed is a sustainability AI platform that helps enterprises measure and report their emissions data and, ultimately, reduce them. Its customers are large companies with complex supply chains, many of whom come to the platform with data that is incomplete, inconsistent, or locked in systems that were never designed to answer environmental questions.
The shift Watershed has made over recent years is from high-level, spend-based approaches toward activity-based, product-level emissions measurement. The challenge, as Moussa explains, is data quality and consistency:
“How do you get good enough data and good enough measurements that you can make business-critical decisions?”
“The goal is not to wait five years for better data before taking action,” Moussa continues. “We need to worry about perfect data. We need to focus on what decisions we can make on the data we have, what questions we need to ask to get better data, and then how to get to better decisions. The goal is ultimately to take action based on the data that we have today.
“Standardized databases like ecoinvent help companies get real insights and move forward immediately.”