Tackling climate change is no longer just a concern for large corporations. SMEs represent over 99% of companies in the EU and are responsible for approximately 60% of corporate emissions. They also generate half of the EU’s GDP and employment. Without SMEs, the green transition simply isn’t possible. But what does carbon accounting actually mean—and how can it help your business grow sustainably?
Emissions fall into three categories
The internationally recognized GHG Protocol is the most widely used carbon accounting standard. It divides emissions into three scopes:
- Scope 1: Direct emissions from owned sources – such as fuel used in vehicles or heating buildings
- Scope 2: Indirect emissions from purchased energy, like electricity or district heating
- Scope 3: All other indirect emissions across the value chain – such as logistics, business travel, or purchased goods
Emissions are typically measured in CO₂e (carbon dioxide equivalent), which includes other greenhouse gases.
How are emissions calculated?
You don’t need to be a climate scientist to get started. Just use reliable emission factors and choose a method appropriate for your data.
- Scope 1: Based on actual fuel use (e.g. 5,000 liters of diesel × 2.12 kg CO₂e/l = 10.6 t CO₂e)
- Scope 2: Based on electricity or heating use – calculated by location or market method
- Scope 3: Often starts with a spend-based approach – using invoice amounts × emission factors
What is emissions intensity?
Emissions intensity shows how much carbon is emitted in relation to your business size — such as per euro of revenue, per product unit or per employee. This metric helps you benchmark against others and track your own progress. When intensity improves, you know you’re moving toward a more sustainable and efficient operation.
Why carbon accounting is worth it?
- Large companies require emissions data from suppliers for CSRD reporting
- Investors and banks assess climate risk in lending and investment decisions
- Public tenders increasingly include sustainability criteria
Carbon accounting also helps SMEs themselves to identify emission hotspots, improve efficiency, and communicate transparently—without the risk of greenwashing.
Carbon accounting is not just compliance – it’s a competitive advantage
Understanding and managing your emissions can help:
- Grow your business sustainably
- Build stronger customer relationships
- Stand out as a responsible supplier
