Key Takeaways
Carbon accounting is the process of measuring an organisation’s greenhouse gas (GHG) emissions, most commonly reported as Carbon Dioxide equivalent.
It provides a baseline for tracking reductions and demonstrating progress toward sustainability targets.
Essential for compliance, procurement, and brand credibility - especially under UK and EU regulations.
What is Carbon Accounting?
Carbon accounting is the process of measuring and managing an organisation’s greenhouse gas (GHG) emissions, expressed as carbon dioxide equivalents (CO₂-eq). It creates a clear picture of where emissions come from, sets a baseline for progress, and tracks reductions over time. In business, carbon accounting turns sustainability into measurable performance, helping companies make informed decisions and report with confidence.
Carbon Accounting for SME’s
For small and medium-sized businesses, carbon accounting is often the first practical step toward sustainability. It helps meet client and supply-chain expectations, prepare for reporting requirements such as SECR and ESOS, and strengthen credibility in tenders and partnerships.
The Streamlined Energy and Carbon Reporting (SECR) framework requires qualifying UK companies to disclose their energy use and associated greenhouse gas emissions in annual reports, encouraging transparency and accountability.
Similarly, the Energy Savings Opportunity Scheme (ESOS) mandates regular energy audits for large undertakings to identify cost-effective energy efficiency measures.
Even when not legally required, many growing SMEs voluntarily adopt carbon accounting to stay ahead of these frameworks, demonstrate their responsibility to stakeholders, and future-proof their operations against tightening sustainability regulations.
Common Use Cases for Carbon Accounting
Construction and Architecture: Strengthening Project Bids
Firms in the built environment use carbon accounting to measure emissions across offices and projects, helping them meet procurement requirements such as Public Procurement Notice (PPN) 06/21. Introduced by the UK Government, PPN 06/21 requires suppliers bidding for major public contracts to publish a Carbon Reduction Plan that outlines their emissions and actions to reduce them.
For many small and mid-sized firms, adopting carbon accounting is the first step toward meeting these expectations and improving their performance in sustainability-scored tenders. Often leading them to win larger tenders as developers preferentially allocate projects to sustainable organisations.
Insurance: Unifying Reporting and Compliance
Insurance companies often manage multiple offices, requiring consistent emissions tracking to ensure compliance with SECR and ESOS while enabling seamless integration during growth or acquisitions. Carbon accounting provides a clear, auditable structure for this data.
Media and PR: Meeting Client Sustainability Expectations
Media and communications agencies increasingly report emissions to meet client or supply-chain standards. Carbon accounting helps them provide transparent data, maintain strong environmental credentials, and strengthen long-term relationships with enterprise clients.
Carbon Accounting with Alectro
Alectro helps businesses make carbon accounting simple. The platform automates data collection, calculates emissions across all scopes, and turns complex reporting into clear, actionable insights.
