Carbon accounting, or greenhouse gas accounting, helps companies measure the greenhouse gases (GHGs) they emit. It works like financial accounting, but instead of tracking money, it focuses on the company’s effect on the climate.
Learn more about Carbon Accounting
Greenhouse gas accounting helps businesses, governments, and people see and measure their effect on the environment. It looks at all the greenhouse gas emissions a company creates, whether directly or indirectly.
In certain countries, companies are required to report their greenhouse gas emissions annually, making CO2 accounting an essential part of their operations. Many businesses are also actively trying to lessen their environmental footprint. As of February 2023, firms and governments that account for 92% of the world’s GDP have expressed plans or commitments to achieve net zero by 2050.
Greenhouse gas accounting is named after carbon dioxide (CO2), which is the most prevalent greenhouse gas and the largest factor in global climate change. In many carbon accounting systems, emissions of other greenhouse gases (GHGs) are expressed as their carbon dioxide equivalent, known as CO2e.
Benefits of Greenhouse gas accounting
Greenhouse gas accounting helps a company understand its effect on the environment. This is helpful for meeting government rules, lowering climate effects, and boosting business efficiency.
Conclusion
CO2 accounting helps businesses, governments, and individuals understand their impact on the climate. Many companies must report their emissions to the government or regulators, and Greenhouse gas accounting is the standard method for this. While it can be difficult to do accurately, effective carbon accounting can also bring several financial advantages.