What is carbon accounting, and how does it contribute to a company's sustainability strategy?

Here at Greenr, we get a lot of questions about carbon accounting – everything from what it actually means to how it affects a company's sustainability strategy. In this blog, we will be answering some of our top questions around carbon accounting, including:?

• What are Carbon Accounting Tools?
• What are Carbon Accounting Methodologies?
• What are Carbon Accounting Standards?
• What are Carbon Reduction Programs?

Introduction to Carbon Accounting:

Carbon accounting, or "greenhouse gas accounting," is the measurement and monitoring used to quantify an entity's or activity's carbon dioxide equivalent (CO2e) emissions. It encompasses all greenhouse gases, like CO2, methane, nitrous oxide, and fluorinated gases, expressing them in terms of CO2 equivalents.

Carbon accounting serves as a vital tool for organisations to measure and understand their environmental impact. By measuring GHG emissions, businesses gain insights into the sources of their carbon footprint. This understanding enables the development and implementation of targeted strategies for emission reduction in line with national reduction target such as the UK’s Net Zero 2050 commitment.

What are Carbon Accounting Tools?

Carbon accounting tools are software applications that facilitate the collection, analysis, and reporting of greenhouse gas emissions data such as Greenr. Greenr’s AI-powered carbon accountancy platform integrates into a companies accountancy and expense software (Xero, Quickbooks, Sage) allowing them to track their carbon emissions on a clear, customisable dashboard with regular reports and a full emission breakdown.

What are Carbon Accounting Methodologies?

The main carbon accounting methodology is the Greenhouse Gas Protocol (GHG). The GHG categorises business emissions into different three scopes to provide a comprehensive understanding of a company's environmental impact. Scope 1 covers direct emissions from owned or controlled sources, Scope 2 includes indirect emissions from purchased electricity, and Scope 3 encompasses indirect emissions from the entire value chain. These methodologies enable companies to prioritise emission reduction efforts effectively.

What are Carbon Reduction Programs?

Carbon reduction programs are dedicated efforts aimed at lowering a company's greenhouse gas emissions. These initiatives involve implementing practical strategies, such as improving energy efficiency, adopting renewable energy sources, minimising waste, and incorporating sustainable practices in the supply chain. At Greenr, we empower employees to actively reduce their carbon footprint using our employee engagement app. Employees participate in informative carbon literacy workshops and are guided to calculate their individual carbon footprint on the app. They can then choose from a wide range of over 200 carbon reduction pledges available. All the data is aggregated and anonymised then seamlessly integrated into the Greenr dashboard for a comprehensive overview.

What are Carbon Accounting Standards?

Carbon accounting standards, like the Greenhouse Gas (GHG) Protocol and ISO 14064, provide a consistent way to measure and report emissions. Following these standards makes sustainability reporting more credible and transparent. The GHG Protocol, in particular, is the gold standard for tracking a company's greenhouse gas emissions worldwide. At Greenr, we follow both the GHG Protocol and ISO 14064 to ensure we meet the highest standards in our reporting.

Carbon accounting can be one of the most powerful parts of a company's sustainability strategy. By utilising tools such as Greenr’s carbon accounting platform, adhering to methodologies and standards and implementing carbon reduction programs, companies can effectively manage their carbon footprint and contribute to a Greenr future.