Why all Businesses need Carbon Accounting

As the world steps up its climate commitments, companies everywhere whether public or private are being asked to take responsibility for their environmental footprint. Carbon accounting, the process of measuring and reporting greenhouse gas emissions, is no longer a "nice to have." It's becoming essential to doing credible, competitive and compliant business in the 21st century.

Whether it's regulatory compliance, attracting investors, or building a trusted brand, carbon accounting provides the data you need to act and lead on climate change. And that's where the real story begins, understanding your footprint is the first step toward owning your impact.

What Is Carbon Accounting?
Carbon accounting is the systematic measurement and reporting of greenhouse gas (GHG) emissions associated with an organization's operations. It helps companies understand where emissions are coming from across their value chain:

Scope 1: Direct emissions from owned or controlled sources (e.g., company vehicles, onsite fuel combustion)
Scope 2: Indirect emissions from purchased electricity, steam, heating, and cooling
Scope 3: All other indirect emissions, including supply chain, business travel, product use, and end-of-life disposal
Just like financial accounting reveals fiscal health, carbon accounting shines a light on environmental impact enabling smarter business decisions and long-term sustainability planning. It lays the foundation for every climate commitment a company can make.

Why It Matters for Public Limited Companies
For publicly listed companies, especially in India, carbon accounting is increasingly tied to regulatory compliance and investor confidence. The top 1,000 listed entities are already mandated to submit a Business Responsibility and Sustainability Report (BRSR), which requires structured ESG data, including emissions.

Case in Point:
Infosys achieved carbon neutrality in 2020, 30 years ahead of the timeline set by the Paris Agreement. The company has also established an internal carbon pricing system to raise awareness about the carbon footprint of each of its departments while incentivizing emissions reduction. Infosys' Journey to Carbon Neutrality | India | UNFCCC
Globally, investors are integrating environmental performance into their evaluation criteria. Failing to report emissions or set reduction targets can mean losing access to capital or worse, losing investor trust.

Benefits for public companies:
Stay compliant with regulations
Reduce climate-related financial risks
Attract sustainability-focused investors
Strengthen long-term shareholder value
For more information - https://sustainium.io/post/why-all-businesses-need-carbon-accounting

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This release was published on openPR.