Ironic that I would mention Autodesk in my post yesterday find ADSK all over the news this morning. The most important item is about a new carbon accounting method they call C-FACT. Here are the highlights from the press announcement:
Autodesk (ADSK), the design software giant, has decided to step into the breach. It has created its own carbon accounting methodology – the Corporate Finance Approach to Climate-Stabilizing Targets [C-FACT] – that considers carbon emissions (and increases in carbon emissions) adjusted against the “value” or change in value produced by the company.
What is value? Gross profit, or revenue generated minus costs, according to Emma Stewart, senior program lead of the Autodesk Sustainability Initiative.
The initial reaction is to see this as a scheme that favors software companies, which tend to have high gross profits and low carbon emissions. But where you begin is not the important part, she stated. The issue is how a company can improve its emissions from a baseline while accommodating growth and increases in profit. The system also accommodates short-term deviations, forecasting and cost-saving measures.
C-FACT grew out of a company-wide effort to reduce carbon emissions. Autodesk itself does not generate much in the way of carbon emissions directly. Still, the company’s output of greenhouse emissions increased from fiscal 2008 to 2009. The increase, though, also coincided with a growth surge.
How did it fare in 2009? The company generated 83,073 tons of greenhouse gases and reported $2.1 billion in gross profit in fiscal 2009, leaving it with 0.04 kilograms per dollar. Autodesk is now in the process of discussing C-FACT with various organizations and standards bodies.