Net zero strategy and carbon accounting

Carbon accounting is the process of measuring and reporting the greenhouse gas emissions generated by an organisation, product, or project.

For organisations, this includes emissions from activities across their value chain, covering sources such as energy use, transport, procurement, and supply chains.

For greenhouse gas accounting and reporting, emissions are categorised into three scopes: Scope 1, Scope 2, and Scope 3. 

Robust carbon accounting allows organisations to establish a baseline emissions footprint, identify emissions hotspots and prioritise reduction opportunities. It is the foundation for developing a credible net zero strategy, enabling organisations to set targets and implement actions that reduce emissions over time.

Carbon reporting is the process of documenting and communicating an organisation’s greenhouse gas emissions and progress toward emissions reduction targets.

Carbon reporting typically includes emissions data across Scopes 1, 2 and 3, alongside analysis of major emissions drivers and recommended reduction actions. Many organisations produce annual emissions reports and dashboards to help leadership teams track progress and inform decision-making.

Effective carbon reporting also supports transparency for stakeholders and helps organisations monitor progress against their net zero commitments.

Scope 3 reporting measures emissions that occur across an organisation’s wider value chain from sources that are not owned or controlled by the reporting organisation, such as purchased goods and services, supply chain activities and other indirect emissions.

These emissions are often the largest component of an organisation’s total footprint. Measuring them requires collecting and analysing data across procurement, suppliers and operational activities.

Robust Scope 3 reporting helps organisations identify emissions hotspots and engage suppliers in decarbonisation efforts, enabling meaningful progress toward net zero.

A net zero strategy outlines how an organisation will reduce greenhouse gas emissions over time to reach net zero.

A typical strategy includes:

• • Establishing a baseline emissions inventory across Scopes 1–3
  • Identifying emissions hotspots through data analysis
  • Setting reduction targets and action plans
  • Implementing practical measures to reduce emissions
  • Monitoring and evaluating progress through ongoing reporting

This structured approach ensures that emissions reductions are embedded into organisational planning and decision-making rather than treated as a standalone initiative.

Carbon accountancy and net zero consulting supports organisations through the stages required to achieve net zero.

This often includes:

• Carbon accounting and emissions measurement
• Hotspot analysis and emissions insights
• Development of reduction targets and action plans
• Implementation planning for decarbonisation actions
• Ongoing measurement and reporting

Consulting support is often most valuable in the early stages of the net zero journey, helping organisations establish strategy, governance and priorities before embedding ongoing systems for measurement and reporting.

The time required to complete a carbon accounting assessment depends on the complexity of the organisation and the availability of emissions data.

For larger organisations, establishing a baseline emissions inventory can involve several stages, including scoping and mobilisation, data collection and emissions calculations, followed by analysis and reporting. These stages may take several months to complete in order to build a defensible emissions inventory across Scopes 1–3.

Carbon accounting is also iterative: the first year often takes the longest as teams locate data, fill gaps, and agree on assumptions. In subsequent cycles, organisations typically improve data availability and quality (for example, by standardising data requests, strengthening supplier engagement and increasing use of primary data), which can reduce the time required and increase confidence in the results. 

Carbon accounting provides the emissions data needed for climate-related disclosures within ESG reporting.

By measuring emissions across an organisation’s operations and value chain, carbon accounting enables organisations to report on environmental performance, track progress toward emissions reduction targets and provide credible evidence of sustainability commitments.

For many organisations, carbon accounting and reporting form a key component of broader ESG reporting services and sustainability reporting programmes.

Most organisations move through several stages as they develop their net zero programme.

These typically include:

1. Scoping and mobilisation – defining boundaries, ambition levels and governance

2. Baseline measurement – establishing emissions inventories across Scopes 1–3

3. Hotspot analysis – identifying the largest emissions sources

4. Decarbonisation strategy development – building a pathway to reduction targets

5. Implementation planning – integrating actions into operations and procurement

6. Measurement and reporting – tracking progress and improving data quality over time

7. Capability building – embedding skills internally and engaging suppliers

This process allows organisations to move from initial measurement toward long-term emissions reduction.

Scope 3 reporting is often complex because it requires emissions data from across an organisation’s supply chain and procurement activities.

Challenges can include:

• Limited supplier emissions data

• Large volumes of procurement data

• Complex value chains

• The need for estimation methods where primary data is unavailable

Despite these challenges, measuring Scope 3 emissions is essential for organisations seeking to understand their full carbon footprint and identify meaningful opportunities to reduce emissions across their value chain.

Organisations typically begin their net zero journey by establishing a baseline carbon footprint across their operations and value chain.

Once emissions have been measured, organisations can set reduction targets, develop action plans and begin implementing measures to reduce emissions. Monitoring and reporting progress over time ensures that organisations stay on track toward their net zero goals.