Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

EIT Food and DevelopMinded issue carbon accounting guide for businesses

© Shutterstock / FreedomzPost Thumbnail

EIT Food and DevelopMinded have published a report to provide companies with guidance on getting started with carbon accounting. 

  • A new report is positioning itself as an impartial guide in helping companies with carbon accounting.
  • Carbon accounting is the process by which organisations calculate their greenhouse gas emissions and their climate impact.
  • Businesses of all sizes are under increasing pressure to decarbonise, but some do not have the tools to measure and therefore address their carbon footprint.

Food innovation community EIT Food and strategic advisory firm DevelopMinded have published Making Sense of Carbon Accounting on Decarbonisation Day at COP27. The report is intended to guide companies in taking the first steps with carbon accounting.

What is carbon accounting?

In order to limit the climate impact of an entity, it is necessary to measure it. Carbon accounting involves quantifying the Scope 1, 2 and 3 greenhouse gas emissions generated by a business.

Scope 1 and 2 emissions are relatively easy to calculate, as they are produced by the direct activities of an organisation and the source of the electricity it consumes, respectively. Scope 3 emissions, conversely, are generated by all indirect sources in the value chain and can account for up to 90% of a company’s carbon emissions. As such, they can be more challenging to measure and require a collaborative approach between the emitter, its partners and stakeholders.

Many organisations, especially small and medium enterprises (SMEs), may lack the tools, capacity or funds to fully analyse their carbon footprint. A 2022 survey from the SME-Climate Hub found that SMEs are willing to address their climate impact, but 68% of 194 respondents felt they did not have enough resources to take effective action.

The market for carbon accounting solutions is expanding amid increasing demand. For example, in October 2022, enterprise software company Sage (LSE:SGE) acquired Spherics, a carbon accounting platform for SMEs, while carbon management solutions provider Carbon Direct raised $60 million in August 2022.

EIT Food and DevelopMinded offer impartial advice

The report compares 17 providers including Greenly, PlanA, FigBytes and Emitwise, summarising the most important features of each solution, how it works and for which type of company it is suitable. DevelopMinded plans to update the report every year.

EIT Food and DevelopMinded said that companies can use their guide to identify what solution works best for them, and then set up demo meetings with the best matches via the links provided in the report’s Summaries section. The authors stressed that there are no financial ties between DevelopMinded and the solution providers.

Lennaert Jonkers, founder of DevelopMinded, said: “Companies need to start focusing on ensuring long-term business viability. They will need to transform business practices to operate within the planetary boundaries and carbon accounting is an integral part of sustainability transformation efforts.” 

Keeping up with an ever-changing landscape

Carbon accounting is due to become an increasing priority for organisations as regulation, reporting frameworks and solutions are forecast to change drastically in years to come. The world cannot continue with business-as-usual and companies must address their climate impact to future-proof themselves.

Regulation is becoming more stringent as jurisdictions worldwide focus on corporate sustainability. For example, large emitters in the US and the EU are required to report on their footprint, and it is expected that these rules will extend to smaller companies.

Businesses are also facing pressure from consumers and B2B partners amid an increasing market for sustainable products, while purpose-driven employees, especially among the younger generations, push for change internally. Shareholders and investors are also demanding sustainability credentials to understand the long term viability of their investees.

In the words of Shima Barakat, director of the entrepreneurship for sustainability programme at the University of Cambridge: “As COP27 kicks off, the world is acutely aware of the need for action and implementation, and not for more rhetoric. Our actions are only as good as our people and our tools. We know that we have good people, but it’s crucial that we also have the tools to help us measure and implement continuous improvement strategies and plans.”

More from SG Voice

Latest Posts