Carbon Accounting 101
A comprehensive introduction to measuring, tracking, and reporting greenhouse gas emissions using the GHG Protocol framework.
What is Carbon Accounting?
Carbon accounting (also called GHG accounting or carbon footprinting) is the process of measuring the total greenhouse gas emissions caused directly and indirectly by an organization, product, or activity.
"You can't manage what you can't measure."
— Peter Drucker
The GHG Protocol Framework
The GHG Protocol is the world's most widely used greenhouse gas accounting standard. It provides the framework for measuring and managing emissions across three scopes.
Scope 1
Direct emissions from owned or controlled sources (fuel combustion, company vehicles, process emissions)
Scope 2
Indirect emissions from purchased electricity, steam, heating, and cooling consumed by the company
Scope 3
All other indirect emissions in the value chain (suppliers, business travel, product use)
5 Steps to Carbon Accounting
Set Organizational Boundaries
Define which entities and operations are included using equity share, financial control, or operational control approach.
Set Operational Boundaries
Identify emission sources within each scope. Determine which Scope 3 categories are material.
Collect Activity Data
Gather data on fuel consumption, electricity use, travel, purchases, waste, etc. from invoices, meters, and systems.
Apply Emission Factors
Convert activity data to emissions using appropriate factors (region-specific for electricity, fuel-specific for combustion).
Report and Verify
Compile results, ensure completeness, and optionally get third-party verification for credibility.