Emerging Software Solutions for Climate Challenges
A look at how digital tools are being used to support emissions tracking, risk forecasting, and sustainability reporting.
While most discussions around climate innovation tend to focus on renewable energy infrastructure, carbon capture, or electric vehicles, a growing area of interest lies in software-driven climate solutions. In particular, platforms and tools built to track, manage, and reduce emissions are becoming increasingly relevant across industries.
This shift suggests that software may play a more significant role in addressing climate challenges than previously assumed.
📈 The Growth of Climate Software
Several startups and platforms have emerged over the last five years, offering enterprise-grade tools for emissions tracking, climate risk assessment, and sustainability reporting. Notable examples include:
Watershed – A platform for corporate carbon accounting and reduction planning
Sweep – Tools to monitor and report ESG and climate-related performance
Cervest – Climate risk forecasting based on geospatial and asset-level data
Pachama – Forest monitoring and carbon credit validation using satellite data and AI
These tools are typically targeted at large organizations seeking to comply with evolving ESG regulations or voluntarily manage their environmental impact.
🧮 Why Software Is Gaining Attention
Climate challenges are inherently complex, involving systems-level coordination across energy use, supply chains, transportation, and infrastructure. Software solutions offer several advantages in this context:
Data aggregation and visualization
Process automation (e.g., emissions tracking across supply chains)
Scenario modeling and forecasting
While software alone cannot reduce emissions, it can provide the tools necessary for measuring impact and making informed decisions—often a prerequisite for operational change.
🤖 AI and Optimization
AI applications are also being explored in climate-related use cases. These include:
Predictive maintenance for renewable energy assets
Grid optimization and load balancing
Modeling of supply chain emissions and logistics efficiency
Automated regulatory reporting
However, there are ongoing debates around the energy intensity of AI models themselves, raising questions about net environmental benefit depending on the specific use case and implementation.
⚠️ Open Questions for the Sector
As climate software matures, several challenges and open questions remain:
Standardization: Carbon accounting methods and ESG reporting frameworks vary widely. Interoperability and verification remain concerns.
Data availability: Many organizations lack access to high-quality, real-time emissions data.
Regulatory shifts: As legislation evolves (e.g., CSRD in Europe), software vendors will need to adapt rapidly.
Impact measurement: Quantifying the real-world impact of climate-focused software is still difficult in many contexts.
🧠 Final Considerations
Climate software is not a replacement for physical infrastructure or policy reform. However, it appears to be an increasingly important part of the broader climate tech ecosystem—especially as companies face growing pressure to track and report their environmental performance.
The intersection of digital tools and environmental data may continue to grow, particularly in industries with complex operational footprints.
What do you think about software’s role in climate action? Have you noticed these tools making an impact in your work or community? Feel free to reply to this newsletter or share your thoughts on social media.
📚 References
Business Insider. (2025, March 1). A cofounder shares how he pitched his startup and 'earned' his way to compete with Microsoft and Salesforce. Retrieved from https://www.businessinsider.com/watershed-taylor-francis-how-to-pitch-startup-salesforce-microsoft-compeitition-2025-2
Deloitte. (2024, March 19). Decarbonizing H₂O: Financing global water security with voluntary carbon markets. Retrieved from https://deloitte.wsj.com/cfo/decarbonizing-h2o-financing-global-water-security-with-voluntary-carbon-markets-811906ff
Generalist, The. (2023, May 14). Watershed: A climate pragmatist. Retrieved from https://www.generalist.com/p/watershed
Net Zero Compare. (2024, November 21). Watershed – Comprehensive climate action platform. Retrieved from https://netzerocompare.com/software/watershed
PR Newswire. (2025, January 28). Sweep named a top 3 ESG & sustainability reporting solution. Retrieved from https://www.prnewswire.com/news-releases/sweep-named-a-top-3-esg--sustainability-reporting-solution-major-independent-research-firm-302361853.html
Sustainability Magazine. (2024, July 6). Sweep leads global sustainability software rankings. Retrieved from https://sustainabilitymag.com/articles/sweep-leads-global-sustainability-software-rankings
Trellis Group. (2024, February 7). California startup Watershed raises $100 million for emissions-tracking software. Retrieved from https://trellis.net/article/california-startup-watershed-raises-100-million-emissions-tracking-software
Axios. (2023, April 11). Carbon emissions accounting player grows as data demands escalate. Retrieved from https://www.axios.com/2023/04/11/co2-accounting-watershed-climate-data
World Economic Forum. (2023, July 10). AI and climate: Unlocking AI’s potential for a sustainable future. Retrieved from https://www.weforum.org/agenda/2023/07/ai-climate-change-sustainability-environment/