What is carbon accounting, and what benefits can it bring?

 

More and more people are demanding businesses to start taking responsibility for their environmental impact. One way to do that is to calculate the emissions of companies and create a carbon reduction plan to reduce them. Although some argue that carbon accounting isn’t an effective tool, we believe that it can bring many benefits to businesses looking to reduce their impact on the environment.

 

 

What is carbon accounting? 

 

Carbon accounting is the process of measuring the quantity of GHGs emitted by an entity. It allows companies to identify the source of their emissions and act more purposefully to reduce them. A corporate carbon report usually includes emission scopes 1, 2 and 3 – in other words direct and indirect emissions. 

Carbon accounting is usually done by following standardized frameworks, such as the GHG Protocol or Bilan Carbone. Using international standards allows easier comparisons between different entities.

 

 

What are the benefits of carbon accounting?

 

Carbon accounting can bring many benefits to your company. Other than responding to the pressing demands of customers that want more and more sustainable products and services, a carbon report can increase transparency, talent retention, efficiency of processes and competitive advantage.

 

#1: Taking targeted actions towards a resilient and sustainable business

Carrying out a carbon footprint assessment is the first step in establishing an effective low-carbon strategy. By measuring your company’s carbon footprint, you’ll be able to identify its main sources of emissions. Once this has been done, it will be easier to select the actions best suited to your needs, and to take action to reduce your greenhouse gas emissions, thanks to precise, measurable objectives. Finally, once the actions have been implemented, you’ll be able to demonstrate their effectiveness.

 

#2: Improve your brand identity, accountability and transparency

We’re all for sustainable businesses, but only when they’re truly doing something to reduce their environmental impact. By having carbon reports, you can show through data the impact of your actions. Ultimately, this will avoid greenwashing claims and improve your brand’s image.

 

#3: Being more financially profitable

Carbon accounting can help you identify inefficiencies in your company’s operations. For example, optimizing energy use can result in lower utility bills. Moreover, being more sustainable will allow you to improve your brand image and access the market of environmentally conscious customers. Last but not least, investors are increasingly considering environmental, social, and governance (ESG) factors when making investment decisions. Having a carbon report and a clear carbon reduction strategy can help you attract more funds.

 

 #4: Talent recruitment and retention

Finding the right person for a position is becoming increasingly hard. Taking action to be more sustainable will improve the image of your company and it will help you attract and retain talents.

 

#5: Compliance or anticipation of legislation

Finding the right person for a position is becoming increasingly hard. Taking action to be more sustainable will improve the image of your company and it will help you attract and retain talents.

 

Carbon accounting benefits

For some companies, carbon accounting is already mandatory. Following the tendencies of the EU, compiling a carbon report might become mandatory for all businesses in the future. By starting now, you will make sure to be ahead of the times when new legislation will appear.

 

 

 

How to get a corporate carbon report

 

The amount of data needed in order to calculate the carbon footprint of your company might be overwhelming. In order to create a compliant carbon report, we recommend that you consult an expert.