As a Carbon footprint consultant, more businesses are using carbon accounting to address the issue of measuring, reporting, and reducing their carbon emissions—both those directly produced by business activities and indirect greenhouse gas emissions within their value chain—as a result of pressure from both internal and external sources. Measuring and quantifying a company's direct and indirect carbon emissions was impossible just a few decades ago. Thanks to robust carbon accounting software, businesses are now in a prime position to own and manage the environmental effects of their operations. Carbon accounting has always been done voluntarily. However, only some businesses have conducted a thorough self-analysis without the looming prospect of non-compliance sanctions. The EU and SEC have prioritized carbon accounting and disclosures as a result. The tide is shifting thanks to laws like the SEC's proposed climate risk disclosure rule, the EU's Sustainable Finance Disclosure Regulation (SFDR), and the Corporate Sustainability Reporting Directive (CSRD).
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