Carbon accounting - what it is and why it matters for your business

We get it — “carbon accounting” might sound like something best left to scientists, climate activists, or multinational corporations. But here’s the truth: if you’re running a business in 2025, carbon accounting is already relevant to you.

It’s not just about compliance. It’s about understanding your impact, making informed decisions, and staying ahead of shifting expectations from customers, suppliers, and regulators.

So, what exactly is carbon accounting? Let’s break it down.

What is carbon accounting?

At its core, carbon accounting is the process of measuring your business’s greenhouse gas (GHG) emissions. These include emissions from things you directly control, like the petrol your company car uses, and emissions from things you don’t directly see, like the electricity your office runs on or the materials your suppliers produce.

It all starts with establishing your baseline emissions. This is a snapshot of where your business stands right now, and it becomes the starting point for tracking improvements over time.

The three types of emissions you need to know

The GHG Protocol is the global gold standard for carbon accounting. It breaks emissions down into three categories, or “scopes”:

Scope 1: Direct emissions
These are emissions from sources you own or control, like company vehicles, gas appliances, or on-site fuel combustion.

Scope 2: Indirect emissions from energy
These come from electricity, heating, or cooling you purchase. Even though they happen off-site, they’re tied to your energy use and still count.

Scope 3: Value chain emissions
This is the big one. Scope 3 covers all the emissions linked to your business activity but outside your direct control — like your suppliers, business travel, product use, or even the commute of your team. For most businesses, Scope 3 emissions make up 80–90% of total emissions.

Understanding your scopes helps you see the full picture and identify where to start reducing emissions in ways that actually matter.

Why carbon accounting matters for your business

Aside from the bigger picture of climate responsibility (which we’re all part of), carbon accounting has very real business benefits:

• Future-proofing
  As regulations tighten and sustainability expectations rise, businesses that can report and reduce emissions will be more competitive and credible.
  
  
• Attracting customers and investors
  Today’s clients and stakeholders want to see action, not just talk. Being able to measure and report on your emissions shows that you’re serious.
  
  
• Finding efficiency gains
  Carbon data often shines a light on operational inefficiencies. It’s not just about emissions; it can lead to cost savings too.

You don’t need perfect data to get started

Let’s be honest, nobody has perfect data, especially at the beginning. The GHG Protocol recognises this and provides methods for estimating where necessary. The key is to start measuring, even if it’s not exact, and improve as you go.

Just like financial accounting, the real value of carbon accounting is in what you do with the information once you have it.

We can help you take the first step

If you’re new to carbon accounting or unsure where to begin, we’re here to help.

At Munro Benge, we help businesses make sense of their numbers both financially and environmentally. We’ll walk you through what to measure, how to report, and how it connects to your wider business strategy.

There are 7 days in a week, and someday isn’t one of them, so talk to us today.

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