Epicor unveils carbon cost tool for manufacturers’ reporting

Epicor has introduced a patent-pending carbon cost tracking solution for manufacturers by integrating it with its Kinetic enterprise resource planning platform.

The new Carbon Cost Rollup solution adapts standard costing systems to treat carbon dioxide equivalent (CO2e) emissions as a currency. It aims to provide manufacturing businesses with a method to account for carbon emissions with greater transparency and precision, supporting regulatory compliance and sustainability initiatives.

The Carbon Cost Rollup process is designed to operate from the core of manufacturing operations, beginning at the bill of materials stage, where it calculates the carbon cost for every component involved in production. As the manufacturing process advances through various tiers, the collective carbon footprint for the finished product is calculated, providing a clearer understanding of overall emissions at each stage.

This methodology is intended to simplify the complex calculations typically associated with carbon accounting. The process is also designed to work with existing cost accounting software, which the company says should minimise the need for extensive personnel retraining or significant changes to current workflows.

Kerrie Jordan, Group Vice President at Epicor, explained the motivation behind the development of the new solution. "Through feedback from our Customer Advisory Board members, it became clear there was a need for a simplified approach to environmental accountability and reporting in the manufacturing sector," she said.

She continued, "I am incredibly proud of our team's achievements in building a solution that addresses those needs and empowers organisations to mitigate climate change by prioritising areas for emissions reduction and addressing their carbon footprint with the same precision and rigour as their financial costs. This marks a significant step forward in sustainability tracking for manufacturers."

The new Carbon Cost Rollup tool is the latest development in Epicor's sustainability-focused offerings. It complements the company's previously announced integration with Climatiq, a carbon intelligence platform whose carbon footprint calculation API was incorporated across the Epicor portfolio during 2024. The objective of this collaboration is to enable businesses using Epicor's systems to progress toward sustainability goals without jeopardising profitability.

Paul Silva Da Cruz, Chief Financial Officer at DMN-WESTINGHOUSE, commented on the integration of carbon accounting features into Epicor software. "At Epicor Insights, we learned about advanced carbon calculations and reporting functionality. As Epicor can make that easier for us, we are looking at integrating that solution as well," he said.

The launch of Carbon Cost Rollup comes in response to increasing regulatory and market pressures on manufacturers to measure, report, and reduce their environmental impact. By tracking carbon emissions in a manner similar to financial expenditures, manufacturers are expected to be able to identify specific areas where emissions reductions can be prioritised and make more informed decisions regarding their operations and supply chains.

The adoption of standardised carbon accounting methods is projected to become increasingly significant in industry as businesses seek to meet reporting requirements and implement sustainability strategies. Epicor states that integrating such tools into familiar ERP platforms may facilitate wider adoption by reducing hurdles related to cost and complexity.