Why Carbon Accounting Matters: Climate Change Facts That Will Shock You
Climate change has emerged as one of the most pressing challenges facing our planet today. As the impact becomes increasingly severe, businesses are recognizing the urgent need to take action to reduce their carbon emissions. Carbon accounting has become a crucial practice in allowing businesses to measure, manage, and mitigate their greenhouse gas (GHG) emissions. In this blog, we will explore the concept of carbon accounting, highlight its importance for businesses, and present alarming climate change facts that will inspire immediate action.
Carbon accounting is the systematic process of calculating and tracking GHG emissions produced by an organization. It involves gathering data on emissions from various activities and sources, including energy consumption, transportation, waste disposal, and production processes. By quantifying their carbon footprint, businesses gain valuable insights into their environmental impact and can develop effective strategies to reduce emissions.
Environmental Responsibility: Adopting carbon accounting practices demonstrates a business’s commitment to environmental responsibility and sustainability. By measuring their carbon footprint, businesses can identify opportunities for emission reductions and contribute to global climate efforts. And getting businesses to act on the climate crisis can be the real gamer we need so much.
Regulatory Compliance: Governments and regulatory bodies worldwide are increasingly requiring businesses to report their carbon emissions. Carbon accounting ensures that businesses remain compliant with environmental regulations and avoid potential fines or reputational risks.
Enhanced Reputation: Embracing carbon accounting and implementing emission reduction measures can enhance a business’s reputation among customers, investors, and stakeholders. Environmentally-conscious consumers are more likely to support and engage with businesses that prioritize sustainability.
Earth Overshoot Day, the date when humanity’s demand for ecological
resources and services in a given year exceeds what Earth can regenerate
in that year, fell on August 2nd 2023. This means that we are using up our
planet’s resources faster than they can be replenished.
The hottest day ever recorded on Earth happened four days in a row in
July 2023, with global temperatures reaching 17.18 degrees Celsius (62.92
degrees Fahrenheit) on Tuesday, July 4th, and then again on Wednesday,
Thursday, and Friday.
Biodiversity loss is at its worst, with a significant loss in
biodiversity found in all regions. Latin America & the Caribbean have
sustained a loss of 94% since 19752.
Global temperatures have already risen by 1.1°C since pre-industrial
times due to GHG emissions, leading to more frequent and intense
heatwaves, storms, and extreme weather events.
Sea levels have risen by approximately 8 inches since the late 19th
century, and the rate of rise is accelerating, posing a significant threat
to coastal communities and infrastructure¹⁵.
The Arctic sea ice extent has declined rapidly, with an average annual
decrease of 13.1% per decade since 1979, impacting Arctic ecosystems and
By 2050, climate change could lead to an annual loss of $1.2 trillion for
businesses in sectors such as agriculture, real estate, and
Extreme weather events caused by climate change could cost the global
economy $983 billion annually by 2050.
Climate change and its related impacts could displace 700 million people
worldwide by 2030, affecting labour markets and supply chains.
In the pursuit of sustainability, going carbon neutral or net zero, businesses are turning to GHG accounting software to streamline and reap the benefits of carbon accounting efforts. These software solutions offer a range of benefits:
Automated Data Collection: GHG accounting software automates the process of data collection from various sources, such as energy consumption, transportation, and production processes. This automation ensures that businesses have access to real-time, accurate, and comprehensive emission calculations.
Efficient Reporting: The carbon accounting software generates detailed emission reports, simplifying the complexity of the process. These comprehensive reports provide businesses with valuable insights, allowing them to make informed decisions and track their progress towards emission reduction goals.
Goal Setting and Tracking: GHG accounting software enables businesses to set emission reduction targets and monitor their progress over time. This goal-oriented approach fosters continuous improvement and helps organizations stay on track towards their sustainability objectives.
Data Security and Accuracy: GHG accounting software often comes equipped with data security measures to protect sensitive information. Additionally, the software’s automated processes reduce the risk of human errors, ensuring the accuracy and reliability of emission calculations.
Scalability: As businesses grow and evolve, their carbon accounting needs may change. GHG accounting software typically offers scalability, allowing businesses to adapt the software to suit their evolving requirements.
In conclusion, carbon accounting is a fundamental practice for businesses to combat climate change and promote sustainability.
The alarming climate change facts underscore the urgency of action. By integrating GHG accounting software like Snowkap into their operations, businesses can efficiently manage carbon accounting efforts, make informed decisions, and contribute significantly to the fight against climate change.
As we collectively strive for a more sustainable future, Snowkap’s innovative GHG accounting software empowers businesses to play their part and drive positive environmental change.
What is an example of carbon accounting?
An example of carbon accounting is when a company measures the amount of greenhouse gases (GHGs) it produces, both directly and indirectly. This can be done through various methods such as spend-based and activity-based methods. Spend-based methods take the financial value of a purchased good or service and multiply it by an “emission factor,” which estimates the volume of emissions produced per dollar. Activity-based methods measure how many units of a particular product a company has purchased and multiply this by an emissions factor. You can consider onboarding a carbon tracking software to help you in the process.
What is the formula for carbon accounting?
There isn’t a single formula for carbon accounting, but rather various methodologies that aim to quantify the emissions produced by an organization. These methodologies can include spend-based and activity-based methods, as mentioned above.
What is the difference between GHG and carbon accounting?
Carbon accounting refers only to carbon dioxide emissions, while GHG accounting refers to all greenhouse gases. Carbon dioxide is the most common greenhouse gas and the biggest single contributor to global climate change. In most carbon accounting systems, emissions of all GHGs are measured by carbon dioxide equivalent, or CO2e.
What is the difference between carbon accounting and LCA?
The difference between an LCA (Life Cycle Assessment) and a Carbon Footprint relates to the impact categories studied. A Carbon Footprint is focused on one environmental impact category: greenhouse gas emissions (CO2). Meanwhile, an LCA can take more impact categories into account, such as land use, water use, and ocean acidification. A carbon management software like Snow-OP can come in handy.
What is the difference between carbon accounting and carbon audit?
Carbon accounting refers to the process of measuring the amount of greenhouse gas emissions a company is responsible for producing, whereas carbon assessment is more complex. Carbon assessment is the evaluation of numerical data of the greenhouse gas emissions provided by carbon accounting. A carbon audit is an independent assessment of an organization’s greenhouse gas emissions that verifies the accuracy of its reported data. Given the scary facts about climate change, it’s essential to act — and now.