Definition
Carbon accounting, or greenhouse gas accounting, is the process of quantifying the amount of greenhouse gases (GHGs) produced directly and indirectly by a business or organization's activities within a defined boundary.\
Importance
Addressing GHG emissions is crucial for businesses as it helps identify opportunities to improve profitability, reduce risks, and gain competitive advantages. As climate change impacts become more frequent and prominent, governments are expected to implement new policies and market-based incentives to significantly reduce emissions. These new drivers will guide economic growth towards a low-carbon trajectory. Businesses must start planning for this transition now to ensure their investments align with future regulatory and market conditions.