Carbon Accounting

Carbon accounting technology enables organizations to measure, track, and report their greenhouse gas emissions across Scope 1 (direct emissions), Scope 2 (energy-related indirect emissions), and Scope 3 (value chain emissions). The sector has grown rapidly as mandatory reporting requirements (EU CSRD, SEC climate rules) convert voluntary sustainability practices into compliance obligations. Scope 3 emissions, which typically represent 70-90% of a company's total carbon footprint, are the most challenging to measure because they span the entire supply chain. Companies like Watershed, Persefoni, and Greenly provide platforms that calculate emissions from activity data (utility bills, travel records, procurement spend, logistics data), while competitors like Normative and Plan A serve the European market. The sector's growth trajectory mirrors the early days of financial accounting software: what was once optional disclosure is becoming mandatory compliance.