Watershed has been named a leader in the 2026 Green Quadrant: Enterprise Carbon Management Software report by Verdantix, an independent research firm.
Watershed earned market-leading scores across key capabilities, including data acquisition and quality control, carbon calculation methodologies, and net-zero strategy support.
What Verdantix is seeing in the market
In the report, Verdantix describes a market where capabilities “are rapidly converging, with many features becoming table stakes. At the same time, customer requirements are evolving, and AI-enabled capabilities and product-level carbon emissions management are emerging as key differentiators."
This aligns with what we have long heard from sustainability teams, finance leaders, and operators: carbon management software needs to do more than consolidate emissions into a single number. It needs to produce granular, auditable data that organizations can use to reduce emissions across their operations, supply chains, and products.
How Watershed is meeting this moment
“As organizations move beyond Scope 1 and 2 reporting toward operationalizing decarbonization across supply chains and products, the demands on carbon management software have fundamentally changed. Granular, auditable Scope 3 and product-level data is no longer a nice-to-have, it is a prerequisite for a credible climate strategy and is increasingly shaping procurement decisions” said Alessandra Leggieri, Senior Analyst at Verdantix. “The 2026 Green Quadrant highlights those vendors best positioned to help firms collect, manage and analyse carbon data across all scopes, with a particular focus on improving visibility into value chain emissions.”
Verdantix highlighted Watershed's strengths across the full enterprise carbon management lifecycle. Key capabilities include:
- Carbon calculation engine with 500,000+ annually updated emission factors, backed by third-party-audited methodologies
- A partnership with ERG and Stanford’s Doerr School to combine USEEIO and CEDA into a unified multi-region input-output model, improving scope 3 estimations
- 150+ automated data-quality guardrails to catch errors, gaps, and anomalies across scopes 1-3
- AI-powered Product Footprints that map products to materials and processes for activity-based scope 3.1, without waiting on supplier PCFs or LCAs
- Supply chain tools with customizable supplier surveys, engagement portals, and an ESG database of 20M+ firms, plus AI-powered supplier matching
"Carbon management is an operational challenge that touches every corner of global enterprises," said Taylor Francis, co-founder of Watershed. "We built Watershed to tame that complexity and turn sustainability into a business driver for our customers. We're proud to be recognized as an industry leader by Verdantix for our work, and we're grateful to the customers who have trusted Watershed's sustainability AI to power theirs."
Verdantix evaluated 21 vendors through live demos, detailed briefings, and a rigorous review of carbon management capabilities and customer outcomes. As carbon data becomes central to business strategy—not just compliance—the software behind it matters more than ever. Watershed is proud to be leading the charge.
Download the full report here.
