Carbon accounting is the process of measuring and tracking greenhouse gas emissions in CO2 equivalent units. It has become a core business function as investors, regulators, and customers demand climate transparency. In 2024, over 24,800 companies disclosed environmental data through CDP, representing more than two-thirds of global market capitalization. Companies use carbon accounting to assess climate risk, set reduction targets, and find efficiency opportunities. The process covers six key greenhouse gases and converts them into a standard metric. This guide explains why carbon accounting matters, how it works, and how new technologies like AI are transforming emissions tracking for businesses worldwide.
