Emily Clarke

What is Carbon Reporting?

The world is becoming increasingly more aware of the climate crisis, and companies are starting to take steps to reduce their impact on the environment. Many organizations have goals to go carbon-neutral in the coming years. To get there, businesses need a way to understand how their operations impact the environment.

That's where carbon reporting comes in. Also known as carbon accounting, this unique practice calculates and monitors how much carbon a company emits.

The Basics of Carbon Reporting

There are two different ways to approach carbon reporting.

The first is to look at an organization's direct and indirect emissions. It doesn't matter whether a business focuses on delivering natural gas to entire communities or manufactures products for sale. Industrial operations result in greenhouse gas emissions. Physical carbon reporting is a method to measure just how much emissions a company is responsible for releasing. Typically, businesses use carbon reporting software to monitor and manage this figure.

The goal is to reduce emissions as much as possible. That takes time, but careful carbon reporting helps measure progress and provides transparency for ESG mitigation.

The second reporting category is financial carbon accounting. It applies an economical market value to emissions produced and absorbed.

Why Does Carbon Reporting Matter?

In the past, this type of reporting was more of a luxury to have on hand. Companies didn't do much with it. However, things are very different now, and carbon reporting is quickly becoming an industry standard.

Stakeholders, government entities, and customers all want more corporate accountability. They want transparency, and failing to provide emission figures can lead to extreme reputational damage.

Reporting is also crucial to making a shift towards greener operations. Understanding carbon emissions can help businesses monitor changes, pinpoint different areas of operations that require attention, and take steps to improve. It's a way to quantify what used to be a relatively subjective measurement. Instead of relying on best guesses, companies can use carbon reporting software to gain actionable insights and make informed decisions that make a difference.

Carbon reporting is an essential part of running a modern business. The push for corporate accountability will only get stronger, and carbon accounting ensures that you are taking steps in the right direction.

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Emily Clarke is providing info about a single platform for your oil and gas software solutions. You can find her thoughts at AI-powered energy software blog.