 Carbon accounting:

 Introduction :

• Carbon accounting is a special way

of tracking gases that can hurt the
environment.
• Carbon accounting and greenhouse
accounting is the process of
quantifying the amount of
greenhouse gases produced either
directly or indirectly from a
business organization’s activities.
• carbon accounting has been
conducted voluntarily.
 Scope of carbon accounting:

 Scope 1: Direct emissions

• Direct emission that are
owned or controlled by a
company
• Emission from sources that an
organization owns or controls
directly.
• Example: from burning fuel in
the company’s fleet or
vehicles.( if they are not
electrically powered).
 Scope of carbon accounting:

Indirect emission: Indirect emissions that are a consequence of a company's

activities but occur from sources not owned or controlled by it.

 Scope 2: Indirect emissions  Scope 3: Indirect emissions

• Emissions a company causes indirectly
that come from where the energy it
purchases and uses is produced.
• Example:The emissions caused by the
generation of electricity that's used in
the company's buildings.
• All emissions not covered in scope 1 or
2, created by a company's value chain.
• Example: When the company buys, uses
and disposes of products from
suppliers.
 Importance:

Below points will explain to you why carbon accounting is important and how the carbon
accounting process will keep helping growing companies.

• Cost Reduction: Identifying and reducing carbon emissions often leads to cost savings.
Energy-efficient practices, renewable energy adoption, and waste reduction can lower
operational expenses.
• Risk Management: Climate change poses risks to businesses and governments, from
supply chain disruptions to increased insurance costs due to extreme weather events.
Carbon accounting helps identify and manage these risks.
• Investor and Stakeholder Relations: Investors and stakeholders increasingly demand
transparency regarding a company's environmental impact. Carbon accounting provides
data for sustainability reporting, improving reputation and attracting responsible
investors.
• Long-Term Sustainability: Monitoring carbon emissions is essential for achieving
long-term sustainability goals, such as the Paris Agreement's aim to limit global
warming to well below 2 degrees Celsius.
 Challenges of carbon accounting:

 Data Accuracy: Gathering accurate data on emissions from various sources,

such as industrial processes, transportation, and agriculture, can be
challenging. Errors or incomplete data can lead to inaccurate carbon
accounting.

 Dynamic Nature of Emissions: Emissions can vary throughout the year and
over time due to factors like production levels, weather, and technology
changes. Keeping emissions data up to date is a challenge.

 Verification: Ensuring the accuracy of reported emissions often requires

third-party verification, which can be costly and time-consuming.
 Challenges of carbon accounting:

 Policy and Regulatory Changes: Frequent changes in carbon accounting

regulations and policies can make it difficult for organizations to stay
compliant and consistent in their reporting.

 Technological Advancements: As technology evolves, new methods for

emissions measurement and accounting emerge, making it challenging to
keep up with the latest tools and practices.
Thank you

Meet & Krunal