Carbon accounting is no longer a nice-to-have, it’s the foundation of credible climate action. Whether you’re a growing business or a global enterprise, understanding your emissions is the first step to reducing them and building a more resilient organisation.
This guide breaks down what carbon accounting means, why it’s important, and how to do it well.
Carbon accounting is the process of measuring and recording the greenhouse gas emissions your organisation is responsible for, directly and indirectly. It turns everyday business activities into measurable data, expressed in CO₂e (carbon dioxide equivalent).
It covers three categories, known as Scopes 1, 2 and 3:
Together, these scopes give you a complete view of your organisation’s climate footprint.
You can’t manage what you don’t measure. Accurate carbon accounting helps you:
Decide which parts of your organisation and operations to include, this is called setting your organisational boundaries. Most companies start by following the Greenhouse Gas (GHG) Protocol, the global standard for carbon accounting.
Start to gather activity data such as energy bills, travel logs, and procurement records. If exact data isn’t available, use credible estimates or spend-based data. The key is to be transparent about your assumptions.
Convert activity data into emissions using emission factors. These are values that link a specific activity to a certain amount of CO₂e. Many are published by governments and international bodies. The fastest and most accurate way to do this is by using trusted carbon accounting software such as Flotilla’s smart tech platform.
Once you’ve measured your baseline, it’s time to start managing it. Use the Flotilla platform to easily set targets, identify reduction opportunities, and embed decarbonisation into your business strategy.
Having incomplete data. Some businesses don’t feel they can start the process due to incomplete data, but our advice is to start with what you have and improve each year. Consistency matters more than perfection.
Complexities around Scope 3. The key is to prioritise the most material categories first (which is often purchased goods, logistics, or business travel). At Flotilla, we de-mystify Scope 3 so you can focus on taking action.
Concerns around greenwashing. Some companies worry that starting their carbon accounting journey could create backlash. Our clients don’t have these concerns, as we ensure reporting methods are transparent and accurate, and we always prioritise genuine reduction before offsetting.
What’s the difference between carbon accounting and carbon footprinting? Carbon footprinting is often a snapshot. The total emissions for a product, service, or organisation. Carbon accounting is the ongoing process behind that number, used to measure, report, and manage emissions over time.
Do small businesses need to do carbon accounting?
Yes. Even small organisations can benefit from understanding their emissions. It helps identify savings, build credibility with partners, and prepare for future regulation.
How often should I update my carbon inventory?
Most organisations update their carbon inventory annually, aligning it with financial reporting cycles. Some track key metrics quarterly to monitor progress more closely.
Is your carbon accounting software easy to use?
Absolutely. Our Carbon accounting tool seamlessly automates data collection, calculations, and reporting, saving businesses time and improving accuracy. It also fully aligns with the GHG Protocol for added peace of mind.
How does carbon accounting fit into a net zero strategy?
Carbon accounting provides the data foundation for a credible net zero plan. You can’t set science-based targets or verify reductions without accurate measurement.
