Carbon accounting needs to be as pervasive as financial accounting

Any company doing significant business in the EU will need to comply with the European Sustainability Reporting Standards (ESRS), which the European Commission is expected to adopt by 30th June 2023. This comes in parallel to the Corporate Sustainability Reporting Directive (CSRD) which is already in place, as well as other sector-specific regulations and expectations.

Most carbon regulations are underpinned by the Greenhouse Gas Protocol (GHG Protocol) and require businesses to report on Scope 1, Scope 2 and Scope 3 emissions:

Scope 1 emissions refer to direct emissions from owned or controlled sources (for example, emissions from company-owned vehicles, machinery, computers etc.)
Scope 2 emissions are indirect emissions from the generation of purchased energy (for example, electricity and gas usage in an office building or workers’ home offices)
Scope 3 emissions are all indirect emissions which are not included in scope 2 (for example, investments, purchased goods and services or leased assets)

The actual reporting of emissions is what is most challenging for businesses. Read More 

Read more:
https://www.accountingweb.co.uk/community/blogs/alexis-normand/carbon-accounting-needs-to-be-as-pervasive-as-financial-accounting