What is carbon accounting?

Carbon accounting, also known as "greenhouse gas accounting," involves systematic methodologies, measurement, and monitoring to assess and quantify the emissions of carbon dioxide equivalents (CO2e) by an entity or activity. It encompasses all greenhouse gases, including CO2, methane, nitrous oxide, and fluorinated gases, with non-carbon gases represented in terms of carbon equivalents

Is Carbon accounting for Industries only ?

Governments, businesses, and individuals use carbon accounting to calculate their greenhouse gas emissions. The collective greenhouse gas emissions of a person, nation, or company are referred to as their carbon footprint, typically depicted as an annual snapshot of continuous emissions

Why is carbon accounting important for businesses?

Carbon accounting plays a crucial role in assessing a business's environmental impact and serves as a vital indicator for investors, consumers, and employees when evaluating a company's non-financial performance. It enables businesses to understand their carbon footprint (including scope 1, 2, and 3 emissions), identify decarbonization opportunities, optimize ESG performance, and adapt to evolving rules and regulations

Why has carbon accounting grown in importance?

Carbon accounting has grown in importance due to increasing regulatory mandates for emissions disclosure. Businesses are compelled to understand and report their carbon emissions as regulations continue to evolve

How does carbon accounting relate to ESG reporting?

ESG reporting, a global business standard, measures a company's non-financial performance across environmental, social, and governance categories. Carbon accounting is a fundamental component of the "Environment" aspect of ESG

What is a carbon equivalent?

A carbon equivalent is a metric used to compare emissions from different greenhouse gases based on their Global Warming Potential (GWP), which measures the relative heat-trapping potency of gases. For instance, methane is 28 times more potent than CO2 over a 100-year period

What are scopes 1, 2, and 3 in carbon accounting?

Carbon emissions are categorised into three scopes: Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (indirect emissions in the value chain). Scope 3 is often the largest source of emissions for businesses

What are some methods of carbon accounting?

Various carbon accounting methods, such as, spend-based, supplier-specific, average-data, and hybrid methods, are available based on data availability and accuracy

What role does carbon accounting software play?

Carbon accounting software automates and streamlines carbon accounting processes, facilitating emissions tracking and reporting, particularly important for assessing emissions throughout supply chains

How can businesses implement carbon accounting with Planetwise?

Planetwise offers specialised carbon accounting tools following the GHG Protocol Corporate Standard. It empowers businesses to quantify emissions, set Paris Agreement-compliant net-zero targets, and drive decarbonization strategies across all scopes

How does carbon accounting relate to the Paris Climate Agreement?

Carbon accounting aids countries in measuring emissions reductions and aligning with commitments under the Paris Climate Agreement, although progress towards its goals remains a challenge

What role does the GHG Protocol play in carbon accounting?

The GHG Protocol's Corporate Standard ensures accurate carbon accounting through agreed-upon methodologies and principles, promoting transparency and accuracy

How does carbon accounting contribute to business success?

Carbon accounting is integral to a company's success, aiding in financial risk reduction, climate risk mitigation, compliance, and sustainability efforts

What role does carbon accounting play in emissions reduction?

Carbon accounting helps businesses identify the most effective levers for emissions reduction, a critical step in achieving global warming targets