Carbon footprint contract
Introduction
Carbon accounting or Greenhouse gas accounting refers to the processes used to measure the amount of carbon dioxide equivalent an organization emits. It is used by states, corporations and individuals to create the commodity of carbon credits that are traded in carbon markets (or to establish the demand "Demand (economy)" for carbon credits). Examples of products based on forms of carbon accounting can be found in national inventories, corporate environmental reports, and carbon footprint calculators.
Carbon accounting is compared to sustainability measurement"), as an instance of ecological modernization discourses and policies. Carbon accounting is expected to provide a factual basis "Fact (philosophy)") for carbon-related decision making. However, social scientific studies are not sure that it allows for good decisions,[1] pointing out practical problems in the implementation of abstract accounting schemes, due to the socially constructed nature of carbon conversion factors.[2] While the natural sciences claim to know and measure carbon, it is often easier for organizations to employ forms of carbon accounting to represent carbon. The reliability of carbon emissions accounts can easily be questioned.[3] Therefore, it is difficult to know exactly how well carbon accounting represents the carbon emitted.
Greenhouse gas accounting
Greenhouse gas accounting describes how to inventory and audit the greenhouse gases that are produced. A corporate or organizational greenhouse gas emissions assessment measures the organization's carbon footprint by quantifying the total amount of greenhouse gases it produces, either directly or indirectly. The information provides the basis for understanding and managing the impacts of climate change and can be used as a business tool.
Drivers of corporate greenhouse gas accounting include mandatory greenhouse gas reporting, investment due diligence, communication with shareholders and stakeholders, staff engagement, green messaging, and bidding requirements for commercial and government contracts. Accounting for greenhouse gas emissions is increasingly considered a standard requirement for companies. For example, in June 2012, the UK Coalition government announced the introduction of mandatory carbon reporting, requiring around 1,100 of the UK's largest listed companies to report their greenhouse gas emissions each year. Deputy Prime Minister Nick Clegg confirmed that emissions reporting rules came into force from April 2013.