What Is Carbon Accounting?

Learn how carbon accounting helps organizations measure greenhouse gas emissions, understand carbon impact, and manage climate-related risk.

Emissions are no longer just an environmental metric. They are increasingly connected to cost, risk, performance, and long-term enterprise value. Carbon accounting, also known as greenhouse gas accounting, is the structured process organizations use to measure, track, and report the emissions tied to their business activities.

In this video, we explain what carbon accounting is, why it matters, and how organizations can use it to make emissions data visible across operations. You’ll learn how globally recognized standards such as the Greenhouse Gas Protocol categorize emissions into Scope 1, Scope 2, and Scope 3, from direct operations and purchased energy to the full value chain.

As regulations such as the Corporate Sustainability Reporting Directive and the Carbon Border Adjustment Mechanism reshape business requirements, organizations need more accurate, audit-ready emissions data. Manual data collection, siloed spreadsheets, and generic industry averages can create risk because they may not reflect actual operations or meet the expectations of regulators, investors, and customers.

SAP Sustainability solutions help organizations build a stronger foundation by embedding carbon data into core ERP processes and connecting emissions insights with financial and operational workflows. With real-time transactional data, businesses can calculate and analyze product carbon footprints at scale and manage carbon data with the same structure, controls, and discipline as financial data.

Treat carbon with the same rigor as cash, understand its true cost, and build a more resilient enterprise.

Explore carbon accounting:
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Chapters
00:05 – Why emissions now affect business performance
00:23 – What carbon accounting means
00:42 – Scope 1, Scope 2, and Scope 3 emissions
01:08 – Regulations and financial implications
01:30 – The risk of disconnected emissions data
02:00 – Integrating carbon into business processes
02:18 – Product carbon footprints at scale
02:34 – Treating carbon with the same rigor as cash

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About SAP:
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