Watershed

Watershed is a leading enterprise climate platform that helps organizations measure, report, and reduce greenhouse gas (GHG) emissions in real time. Trusted by global corporations such as Walmart, Stripe, BlackRock, and Spotify, Watershed provides a full suite of tools for carbon accounting, ESG reporting, supply chain engagement, and climate action planning.

Founded in 2019 and headquartered in San Francisco, Watershed accelerates decarbonization through a data-driven, audit-ready approach. It combines granular emissions measurement across Scopes 1, 2, and 3 with integrated solutions for reporting under frameworks such as CDP, SBTi, CSRD, and SEC climate disclosure rules. The platform also connects companies to a vetted marketplace of carbon removal and offset projects.

Designed for sustainability teams, finance departments, and corporate leadership, Watershed transforms climate data into action, enabling organizations to meet both regulatory and voluntary climate goals with confidence.

Features:

1. Real-Time Carbon Accounting
   Automatically ingest and process emissions data across Scopes 1, 2, and 3 using company-specific activity data and emission factors.

2. Audit-Ready Reporting
   Generate reports aligned with regulatory and voluntary standards including CSRD, CDP, SBTi, TCFD, and the U.S. SEC climate disclosure requirements.

3. Emissions Breakdown by Business Unit
   View emissions by region, product, supplier, facility, or other custom attributes to target reduction strategies effectively.

4. Supplier Engagement Tools
   Collaborate with suppliers to collect high-quality emissions data and improve Scope 3 accuracy.

5. Climate Action Planning
   Model reduction pathways, set science-based targets, and analyze decarbonization levers for each part of the business.

6. Carbon Removal Marketplace
   Access a curated portfolio of high-quality carbon removal and offset projects verified by scientific and third-party standards.

7. Scenario Modeling and Forecasting
   Simulate how different operational or investment decisions affect emissions over time.

8. Secure Data Integrations
   Connect with ERP, procurement, utilities, HR, and other systems via APIs to streamline data collection.

9. Expert Advisory Services
   Watershed Climate Advisors support onboarding, strategy development, and regulatory compliance preparation.

How It Works:

1. Data Collection
   Watershed connects to your existing data systems (e.g. utility bills, ERP, HR, logistics) or ingests spreadsheet-based data to create a comprehensive emissions inventory.

2. Emissions Measurement
   Using up-to-date emissions factors and company-specific activity data, Watershed calculates Scope 1 (direct), Scope 2 (energy), and Scope 3 (value chain) emissions.

3. Automated Reporting
   Reports are generated in formats required by CDP, CSRD, SBTi, SEC, and other frameworks—eliminating manual reporting workflows.

4. Supplier Data Collection
   Engage suppliers with built-in tools to gather primary data and improve Scope 3 transparency.

5. Abatement Planning
   Set reduction targets, prioritize actions based on emissions impact, and monitor progress through real-time dashboards.

6. Carbon Credit Sourcing
   Access projects in carbon removal, reforestation, direct air capture, and soil carbon to offset residual emissions credibly.

7. Ongoing Monitoring and Benchmarking
   Continuously track emissions performance and compare progress across internal divisions or peer benchmarks.

Use Cases:

• Large Enterprises and Public Companies
  Prepare for mandatory climate disclosures under U.S. SEC, EU CSRD, and other global regulations.

• Finance and Investment Firms
  Assess portfolio emissions, support ESG investment strategies, and report to LPs and regulatory bodies.

• Technology and SaaS Companies
  Track cloud infrastructure emissions and improve reporting to enterprise customers.

• Retail and Consumer Brands
  Analyze product-level emissions and engage suppliers for lifecycle-based Scope 3 accounting.

• Supply Chain Managers
  Identify carbon hotspots and drive engagement with vendors to reduce upstream emissions.

• Sustainability Teams
  Centralize ESG data, streamline disclosures, and model climate transition scenarios.

Pricing:

Watershed uses a custom enterprise pricing model, which depends on:

• Organization size and complexity

• Number of facilities, products, or suppliers tracked

• Volume and types of data integrations

• Regulatory reporting requirements (e.g., CSRD, SEC)

• Advisory and implementation support needed

Strengths:

• Real-Time Insights: Unlike traditional carbon accounting tools, Watershed offers live dashboards and ongoing monitoring.

• Regulatory Readiness: Supports compliance with major disclosure frameworks including CSRD, CDP, and SEC rules.

• High-Quality Data Approach: Prioritizes activity-based, company-specific data for greater accuracy.

• Scope 3 Expertise: Robust tools for collecting and modeling value chain emissions.

• Built for Enterprises: Designed to scale with global organizations and complex operations.

• Integrated Marketplace: Direct access to top-tier carbon removal projects for offsetting.

• Advisory Support: Expert services available for strategy, decarbonization, and compliance planning.

Drawbacks:

• Enterprise-Focused: Not suitable for small businesses or startups due to pricing and scope.

• No Free Trial or Tier: All access is gated behind a sales and onboarding process.

• Requires Internal Data Readiness: Accurate results depend on high-quality internal systems and collaboration.

• No Open API Documentation: Integration capabilities exist but details are not publicly documented.

Comparison with Other Tools:

• Persefoni: Both platforms offer enterprise-grade carbon accounting. Persefoni leans more toward financial-grade auditability, while Watershed emphasizes live data, scenario modeling, and action planning.

• Terrascope: Terrascope offers AI-driven Scope 3 modeling and data confidence scoring. Watershed stands out with its real-time monitoring and regulatory alignment features.

• Normative: Strong emissions accounting engine, particularly in Europe. Watershed provides more enterprise integrations and advisory services.

• Sweep: Both support ESG data tracking; Watershed is more robust for climate compliance and strategic abatement modeling.

Customer Reviews and Testimonials:

Watershed is trusted by leading global organizations including:

• Walmart

• Stripe

• Spotify

• BlackRock

• DoorDash

• Airbnb

Customer praise highlights:

• Speed of Implementation

• Data Quality and Transparency

• Excellent Customer Success and Advisory Support

• Simplified ESG Reporting

Watershed has also been featured in The New York Times, Financial Times, Bloomberg, and TechCrunch as one of the most influential climate tech platforms.

Conclusion:

Watershed is a powerful carbon accounting and ESG platform tailored for enterprises seeking real-time insights, accurate emissions tracking, and credible climate action. With robust features for data integration, Scope 3 modeling, regulatory reporting, and carbon removal sourcing, Watershed helps businesses move from climate reporting to climate leadership.

As climate disclosure regulations tighten and investor expectations rise, Watershed offers the technology and expertise to help organizations navigate the transition with speed and integrity.