carbon accounting

Carbon Accounting (also known as Greenhouse Gas Accounting) is the process of measuring and tracking the amount of carbon dioxide (CO₂) and other greenhouse gas (GHG) emissions produced directly or indirectly by an organization, project, or activity.

It’s essential for managing climate impact and meeting environmental regulations or sustainability goals.

🌍 Purpose of Carbon Accounting

To understand the carbon footprint

To reduce emissions over time

To comply with national or international regulations

To report to stakeholders, investors, or sustainability bodies

To achieve certifications (e.g., carbon neutrality, net-zero)

🔎 Types of Emissions Measured

Carbon accounting tracks GHG emissions including:

Carbon dioxide (CO₂)

Methane (CH₄)

Nitrous oxide (N₂O)

Hydrofluorocarbons (HFCs)

Perfluorocarbons (PFCs)

Sulfur hexafluoride (SF₆)

Nitrogen trifluoride (NF₃)

🧮 Scopes of Carbon Accounting (Defined by the GHG Protocol)
Scope Description Examples
Scope 1 Direct emissions from owned or controlled sources Company vehicles, boilers, furnaces
Scope 2 Indirect emissions from purchased electricity, steam, heating, and cooling Office electricity usage
Scope 3 All other indirect emissions in the value chain Business travel, supply chain, waste, employee commuting
📊 Carbon Accounting Methods

Activity-based: Calculates emissions based on actual usage data (e.g., liters of fuel used × emission factor)

Spend-based: Estimates emissions based on the money spent on goods/services (e.g., $ spent × average emissions per dollar)

🛠️ Carbon Accounting Tools & Software

GHG Protocol tools

Carbon Trust tools

SimaPro

OpenLCA

Microsoft Sustainability Manager

Watershed, Persefoni, Normative (modern enterprise tools)

✅ Benefits of Carbon Accounting

Reduces environmental impact

Improves brand reputation

Enhances risk management

Supports regulatory compliance

Prepares for carbon pricing or trading systems

Informs sustainability strategies (e.g. Net Zero plans)