What is Carbon Accounting?

Carbon accounting is the process of measuring and tracking greenhouse gas emissions produced by a company, product, event, or organization. Think of it like financial accounting — but for emissions instead of money.

How does it work?

Organizations collect data on activities that generate emissions, such as:

• Electricity and energy use
• Transportation and shipping
• Manufacturing and operations
• Business travel
• Supply chain emissions

These emissions are typically categorized into:

• Scope 1: Direct emissions
• Scope 2: Purchased energy emissions
• Scope 3: Supply chain and indirect emissions

Carbon accounting helps companies understand where emissions come from so they can set reduction goals and report progress.

Is it “good”?

Carbon accounting is foundational for climate action because you can’t reduce what you don’t measure. That said, accuracy and transparency matter — especially when companies use emissions data in marketing or sustainability claims.

Common in:

• Corporate sustainability reporting
• Supply chain management
• Climate disclosures
• Product lifecycle assessments
• ESG reporting

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