What is Carbon Accounting and Why It Matters in 2025

Carbon accounting — once a niche exercise reserved for sustainability-driven organizations — has now become a mainstream business imperative in 2025. With new regulations like CSRD, IFRS S2, and rising expectations from investors and consumers, companies can no longer afford to ignore their carbon footprint.

In this blog post, we’ll break down what carbon accounting really means, why it's more relevant than ever in 2025, and how companies are turning to digital tools like Carbondeck to simplify the process and stay ahead.

What is Carbon Accounting?

Carbon accounting, also known as greenhouse gas (GHG) accounting, is the process of measuring and reporting an organization’s emissions across its operations and value chain. It helps businesses quantify their impact on the climate and serves as the foundation for net zero strategies, regulatory disclosures, and sustainability reporting.

Think of it as a financial audit — but for your company’s climate impact.

Why Carbon Accounting Matters in 2025

2025 is a critical turning point for carbon transparency:

• Regulations are tightening: The EU’s CSRD requires thousands of companies to disclose their climate impacts, including Scope 3 emissions.
• Investors are demanding more data: Climate-related financial disclosures are now mainstream thanks to frameworks like IFRS S2.
• Customers and partners care: B2B buyers, retailers, and end-consumers increasingly expect climate-conscious operations.

Without a carbon accounting system in place, your business risks:

• Non-compliance penalties
• Losing investor trust
• Falling behind industry competitors

Scope 1, 2, and 3 Emissions Explained

Understanding the three scopes of emissions is fundamental:

Scope 1: Direct emissions

From owned or controlled sources (e.g., company vehicles, factories).

Scope 2: Indirect emissions

From the purchase of electricity, heat, or steam.

Scope 3: Value chain emissions

All other indirect emissions, such as from suppliers, business travel, logistics, and product use.

Did you know? Scope 3 often accounts for up to 90% of a company’s total emissions — and is also the hardest to track without a digital tool.

Who Needs to Do Carbon Accounting?

It’s no longer just for sustainability teams. In 2025, carbon accounting is a business-wide responsibility. You need a system if you are:

• A company covered by CSRD, SEC, or IFRS requirements
• A supplier to major corporations or retailers
• An organization pursuing net zero or ESG goals
• A consultancy managing multiple client inventories

How Carbondeck Simplifies Carbon Accounting

Manual spreadsheets don’t cut it anymore — especially when tracking Scope 3 emissions across large or dynamic operations.

Carbondeck is a cloud-based platform that allows businesses to:

• Automatically track Scope 1, 2, and 3 emissions
• Upload or integrate data from various sources (ERP, utility bills, etc.)
• Use built-in emission factor libraries by sector and geography
• Generate reports aligned with GHG Protocol, CSRD, IFRS, and more
• Collaborate with internal teams or external consultants

🛠️ Bonus for consultants: Carbondeck Booster Plan lets you manage multiple client accounts, run comparative analysis, and build audit-ready reports in a single dashboard.