For many businesses, carbon reporting has shifted from a “nice-to-have” to a legal, financial, and customer-driven necessity. Whether you're supplying to the public sector, responding to ESG requests from clients, or trying to future-proof your operations, you’ll need reliable data, repeatable processes, and clear audit trails.

And while spreadsheets can work at the very beginning, 2026 is the year when most businesses are making the jump to dedicated carbon reporting software. Why? Because regulations such as CSRD, supply-chain pressure from corporates, and procurement frameworks like the NHS Evergreen Sustainable Supplier Assessment (see our guide: What Is the NHS Evergreen Sustainable Supplier Assessment?) are pushing organisations to clean up their data and standardise reporting.

Below, you’ll find a breakdown of the best carbon reporting software tools for businesses in 2026, what they’re good at, where they fall short, and the type of company they’re best suited for.

1. Emerald Power — Best for SMEs & Growing Businesses

Ideal for: SMEs, mid-market firms, supply-chain-dependent businesses, companies preparing for CSRD-aligned reporting.

Emerald Power is built specifically to help businesses simplify carbon accounting without needing in-house sustainability expertise. The platform allows companies to collect activity data, calculate emissions, prepare ready-to-share sustainability reports, and meet client or procurement requirements.

Where it stands out:

Designed for SMEs lacking sustainability staff.

Automated data collection tools make it easy to gather information across energy use, travel, waste and more.

Includes a streamlined Scope 3 workflow based on spend or supplier-specific data.

Provides guided reporting templates and a straightforward interface.

Offers additional resources like How SMEs Can Get Started With Carbon Accounting and Calculating Your Scope 3 Emissions to support users as they grow.

Where it has limits:

Not a heavy enterprise system for global multinationals.

Focuses on operational simplicity rather than deep analytics.

Best for businesses that want:

A clear, uncomplicated route into carbon reporting.

Tools built for teams without sustainability expertise.

Quick wins and procurement-ready reporting.

2. Watershed — Best for Large Corporates & Enterprise-Level Reporting

Ideal for: Large companies, complex reporting environments, organisations needing compliance across multiple jurisdictions.

Watershed is one of the biggest names in enterprise carbon accounting and is widely used by global brands. It offers a fully integrated platform covering data ingestion, audit trails, emissions modelling, supplier engagement, scenario analysis and disclosure frameworks.

Where it stands out:

Enterprise-grade data ingestion from multiple sources.

Very strong audit and compliance capabilities.

Detailed emissions modelling and forecasting.

Designed for multinational complexity.

Where it has limits:

Higher price points compared to SME-focused tools.

More complex than smaller businesses typically need.

Best for businesses that want:

End-to-end ESG and carbon reporting at a corporate scale.

3. Normative — Best for Companies Needing Scientific Rigor

Ideal for: Medium to large businesses with complex Scope 3 footprints.

Normative positions itself as a science-driven carbon accounting engine. It has particularly strong methodologies and a powerful emissions estimation engine built on thousands of emission factors.

Where it stands out:

Very robust Scope 3 methodologies.

Strong data modelling for purchased goods and services.

Good for suppliers who need accurate reporting for clients.

Where it has limits:

Implementation takes time.

May be costly for smaller companies.

Best for businesses that want:

High-accuracy emissions estimates, especially in Scope 3.

4. Persefoni — Best for Businesses Needing a Full ESG Tech Stack

Ideal for: Companies preparing for ESG audits, financial disclosures, or regulatory filings.

Persefoni offers a full carbon and ESG management system, making it attractive for companies aiming for assurance-ready reporting. It’s built with a governance lens, so it's particularly strong for companies that may eventually be audited under CSRD.

Where it stands out:

Highly structured reporting workflows.

Assurance-ready design suited for Deloitte or KPMG-style reviews.

Strong governance and analytics capabilities.

Where it has limits:

The system can feel heavy for SMEs.

Longer onboarding than lighter-weight tools.

Best for businesses that want:

Enterprise-grade, highly structured carbon and ESG compliance.

5. CarbonChain — Best for Product-Level and Supply Chain Emissions

Ideal for: Manufacturing, logistics, construction, and industries with material-based footprints.

CarbonChain specialises in high-intensity supply chains and product-level emissions calculations. If you're in a sector where carbon intensity varies dramatically by supplier, this is a strong choice.

Where it stands out:

Deep granular analysis for material-intensive industries.

Strong product-level emissions tracking.

Great for businesses needing supply-chain transparency.

Where it has limits:

Not built as a broad SME reporting tool.

Best for specific industries rather than general use.

Best for businesses that want:

High-resolution supply-chain carbon insights.

How to Choose the Best Carbon Reporting Tool for Your Business

When selecting the right platform, consider:

1. Reporting needs

Are you reporting to clients? Investors? Public procurement?

If you need a simple starting point, see A Practical Guide: Creating Your First Sustainability Report.

2. Data complexity

Do you have multiple sites, many suppliers, or mostly spend-based data?

If Scope 3 is big for you, review A Practical Guide: Calculating Your Scope 3 Emissions.

3. Internal resources

No in-house sustainability expertise?

Start with a tool offering guidance, templates and support — like Emerald Power.

4. Future regulatory expectations

Are you going to face CSRD, NHS Evergreen, or supply-chain expectations?

Make sure your software supports those frameworks.

FAQs

1. What’s the difference between carbon accounting software and spreadsheets?

Spreadsheets work at the earliest stage, but software provides automation, auditability, accuracy, and repeatability — all essential once clients, regulators, or auditors request evidence. For more on this, see Carbon Accounting: Software vs Spreadsheets.

2. Do SMEs really need carbon reporting software?

Increasingly, yes. Supply-chain pressure, procurement requirements, and sustainability tenders often request credible emissions data. Software removes guesswork and speeds up reporting.

3. Which tool is best for businesses without sustainability expertise?

Platforms designed for SMEs — like Emerald Power — provide guided workflows, simple data collection, and reporting templates.

4. How much does carbon accounting software cost?

Pricing varies widely. SME tools may start at a few hundred euro per year, while enterprise systems can cost tens of thousands depending on features and scope.

5. Can carbon reporting software help reduce emissions, not just measure them?

Yes. Most platforms offer reduction planning, scenario analysis, and dashboards that highlight where your biggest opportunities lie.