Carbon Accounting

Carbon accounting is the systematic process of measuring, tracking, and reporting the greenhouse gas (GHG) emissions that an organization, product, or activity generates. It quantifies emissions from all relevant sources—such as energy use, industrial processes, transportation, and supply chains, xpressed in carbon dioxide equivalents (CO₂e) to account for the global warming potential of different gases. Carbon accounting typically follows international standards such as the Greenhouse Gas Protocol, which categorizes emissions into three scopes: direct (Scope 1), indirect from purchased energy (Scope 2), and other indirect value-chain emissions (Scope 3). The process provides the data foundation for setting reduction targets, monitoring progress toward net-zero goals, complying with regulations, and disclosing performance to investors and stakeholders. Effective carbon accounting supports transparency, comparability, and informed decision-making in climate strategy and sustainability reporting.