Carbon accounting is the process of quantifying and tracking a company’s greenhouse gas (GHG) emissions. The goal of carbon accounting is to provide a comprehensive understanding of a company’s carbon footprint and to identify opportunities for reducing emissions.

Carbon accounting involves three main steps: measurement, reporting, and reduction. First, the company measures its GHG emissions from its operations, including direct emissions from its own facilities and indirect emissions from its supply chain, such as emissions from the production of purchased goods and services.

Next, the company reports its GHG emissions using standardized reporting frameworks, such as the the ISO 14064:2018 standard and Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. This reporting helps companies track their progress over time and identify areas where they can reduce emissions.

Finally, the company implements strategies to reduce its GHG emissions. This may involve reducing energy consumption, investing in renewable energy sources, improving supply chain management, or implementing carbon offset programs.