What is Carbon Accounting?
The process of measuring, tracking, and reporting greenhouse gas emissions produced by an organisation. Carbon accounting helps businesses understand their carbon footprint, identify reduction opportunities, and meet regulatory requirements such as SECR and Scope 3 reporting.
Why it matters
Carbon accounting is becoming a baseline requirement for UK businesses. Large buyers and government procurement teams increasingly require carbon data from suppliers, meaning SMEs without a carbon report risk losing contracts. It also helps identify operational cost savings through energy and waste reduction.
Example
A 50-person marketing agency connects its Xero account to EcoHedge and automatically categorises 12 months of spend into emission categories. Within hours it has a Scope 1, 2, and 3 carbon report ready to share with a prospective public-sector client.
Related terms
Carbon Footprint
The total amount of greenhouse gases produced directly and indirectly by an individual, organisation, event, or product, expressed as carbon dioxide equivalent (CO₂e). A carbon footprint includes emissions from energy use, travel, supply chain, and waste.
GHG Protocol
The Greenhouse Gas Protocol is the world's most widely used international accounting standard for measuring and managing greenhouse gas emissions. It provides frameworks for corporate, value chain, and product emissions accounting.
Emission Factors
Coefficients that quantify the greenhouse gas emissions produced per unit of activity. Examples include kg CO₂e per kWh of electricity, per litre of fuel, or per pound spent. DESNZ publishes UK-specific emission factors annually.
Put your knowledge into practice
Start measuring your carbon footprint with EcoHedge. Connect your accounting software and get your first carbon report in hours.