Carbon accounting quantifies the climate impact of an organization’s business. Carbon accounting is essential for businesses to understand their environmental impact, meet reporting requirements, and identify opportunities for carbon reduction. These capabilities lay the foundation for the various business benefits. Many businesses are already required to disclose their carbon emissions – and legislative requirements are continuously increasing. Regulations like the Corporate Sustainability Reporting Directive (CSRD) in the EU and Streamlined Energy and Carbon Reporting (SECR) in the UK mandate emissions reporting for businesses of various sizes and across various sectors. This makes comprehensive carbon accounting a compliance necessity for businesses.
However, there are benefits beyond just compliance for businesses to start their carbon accounting journey; like minimising risks, reducing inefficiency and building brand equity.