What is the basis for customers to continue using Persefoni's product on a SaaS basis?

Generally, the compliance standards we’re talking about require annual reporting. Will that be quarterly at some point in the future? It's possible. But we do think that even now, there are reasons you would engage with a carbon accounting process more frequently than just annually. 

Just compare carbon accounting to financial accounting. Anybody who has managed a balance sheet or an income statement knows that the more frequently you update it, the less overall time you have to spend on it.

If you wait till month-end to deal with all of your expenses, if you wait till quarter-end to do all of your cash to accrual reconciliation, if you wait till the year-end to deal with tax receipts, it all gets really complicated and confusing.

We always coach our customers at Persefoni that you should think about carbon accounting similarly. Put it on a monthly or quarterly-close basis. That way, you’re taking the data that was generated over that past month or quarter and you're building it into your carbon accounting process. You're flexing that muscle continuously, and you're not scrambling at year-end to bring it all back together.

The other thing is that as we start talking about carbon reduction, decarbonization, net zero commitments, and science-based targets, then you can't make your best strategic decisions if you're only considering your emissions on an annual basis. 

You have to look at it in closer to real time to make decisions around supply chain and procurement and shipping and business travel and strategic allocation of capital. 

That’s the only way that you can start to really see year-on-year reductions in carbon footprint. Once that becomes even more common, I think we'll see companies that are not operating in the software monthly or quarterly or annually; they'll be operating it on a daily basis because they're using it to inform their strategic decisions.