Carbon accounting is the process by which organisations account for and report on their greenhouse gas emissions.
As an internal metric, carbon allows companies to assess carbon efficiency and exposure to climate change risks (including regulatory risk). Measurement is also the first step in the process of implementing a broader strategy to address carbon-related opportunities, risks and costs.
Organisations can calculate carbon emissions themselves e.g. using software and templates, but outside support is generally needed to do this robustly, efficiently, with meaningful data, and to provide stakeholders with confidence that the figures are accurate. For large organisations volume of data can be significant. Therefore it is necessary to implement IT systems which allow for an efficient and cost-effective solution.
Carbon emission figures and disclosures inform investor and analyst assessment of a company’s exposure to climate change and energy related risks. They also help indicate to other stakeholders such as customers, consumers and NGOs, the scale of a company’s impact on the environment and its seriousness in addressing this.
Previously, considering climate change issues was the preserve of a few groups of concerned investors but it has now grown into a market consensus and the appetite for information appears to be growing. Carbon accounting is now part of the annual reporting cycle for most large companies. Carbon reporting is also carried out for marketing purposes, particularly to communicate emission reduction initiatives or to compare carbon footprints against other products and services.
The new mandatory reporting requirements come into force for quoted companies with year ends on or after 30 September 2013. The following documents provide guidance on the new GHG legislation:
- Directors Briefing – A summary of the GHG reporting requirements
- ICAEW webinar – Verco-ICAEW webinar recording looking at the state of readiness for mandatory GHG reporting or to see the slides click here
- Implications for company valuation – Report for investors and analysts looking at the potential longer term implications
How we support you
Verco can perform an in-depth review of your current reporting requirements and help with the identification and implementation of appropriate reporting systems.
Specifically we provide support in:
- Calculating and preparing annual carbon accounts for the annual compliance or voluntary reporting cycle;
- Advising on the set-up of efficient and robust data management and accounting systems, including the selection of appropriate software;
- Provision of data collection, carbon calculators and reporting templates, and software;
- Access to emissions factors for calculation and benchmarks for internal and external comparison and targeting;
- Integrating carbon effectively with cost reduction and supply chain improvement.
About Verco’s carbon accounting services
Verco’s carbon accountants provide advice on, and report to, internationally accepted protocols and standards, including the following:
- GHG Protocol Corporate Standard;
- Product Life Cycle Accounting and Reporting Standard;
- Corporate Value Chain (Scope 3) Accounting and Reporting Standard;
- ISO 14064-1; and
- PAS 2050:2011
We also provide advice in line with relevant national GHG reporting guidelines, such as Defra/DECC in the UK, and specific industry sector guidance. Our clients include leading Global 500 and FTSE 100 companies.
Verco is an accredited consultancy partner of the Carbon Disclosure Project (CDP) and operates the Edinburgh Centre for Carbon Management (ECCM). ECCM was established in 1993 and is recognised for its contribution to the scientific rigour in greenhouse gas emission-assessment methodologies.
Verco is a registered ISO 9001 and ISO 14001 company