{"id":13452,"date":"2022-12-01T07:00:00","date_gmt":"2022-12-01T07:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=13452"},"modified":"2025-07-14T12:54:34","modified_gmt":"2025-07-14T11:54:34","slug":"carbon-accounting-biggest-questions-answered","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/carbon-accounting-biggest-questions-answered\/","title":{"rendered":"What is carbon accounting? 6 of your biggest questions answered"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/technology-innovation\/\" class=\"entry-header__link\">Technology &amp; Innovation<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is carbon accounting? 6 of your biggest questions answered\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2022-12-01T07:00:00+00:00\">1 December, 2022<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is carbon accounting? 6 of your biggest questions answered\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/carbon-accounting-biggest-questions-answered\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/duncanoswald\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/11\/Duncan-Oswald.jpg\" class=\"entry-author__image\" alt=\"Duncan Oswald\" \/>\t\t\t\t<span class=\"entry-author__name\">Duncan Oswald<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n<p>The eagle-eyed among you will have noticed that Sage bought carbon accounting software company Spherics back in October 2022.<\/p>\n\n\n\n<p>On 1 December 2022, Spherics officially rebranded to <strong><a href=\"http:\/\/www.earth.sage.com\/\">Sage Earth<\/a>.<\/strong><\/p>\n\n\n\n<p>So there\u2019s no better time to dig a little deeper into carbon accounting and how it can help small and medium-sized businesses (SMBs) reach their climate goals\u2014and that\u2019s what we\u2019ll do in this article.<\/p>\n\n\n\n<p>Here\u2019s what we cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#so\">1. So, what is carbon accounting?<\/a><\/li>\n\n\n\n<li><a href=\"#what\">2. What does carbon accounting allow you to do?<\/a><\/li>\n\n\n\n<li><a href=\"#why\">3. Why is carbon accounting software useful for SMBs?<\/a><\/li>\n\n\n\n<li><a href=\"#are\">4. Are there other ways to measure your carbon footprint?<\/a><\/li>\n\n\n\n<li><a href=\"#is\">5. Is there any legislation forcing SMBs to adopt carbon accounting?<\/a><\/li>\n\n\n\n<li><a href=\"#where\">6. Where does Sage Earth fit in to all of this?<\/a><\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"video-container-wrap -mode-full\"><div class=\"video-container\"><video\n\t\t\t\tclass=\"sage-video video-js vjs-default-skin \"\n\t\t\t\twidth=\"640\"\n\t\t\t\theight=\"360\"\n\t\t\t\tdata-setup='{ \"controls\": true, \"aspectRatio\" : \"16:9\", \"poster\": \"https:\/\/img.youtube.com\/vi\/egL9VHtc-4A\/maxresdefault.jpg\", \"techOrder\": [\"youtube\"], \"enablejsapi\": 1, \"origin\": \"https:\/\/www.sage.com\", \"sources\": [{ \"type\": \"video\/youtube\", \"src\": \"https:\/\/www.youtube.com\/watch?v=egL9VHtc-4A\"}], \"youtube\": { \"ytControls\": 0, \"cc_load_policy\": 3, \"modestbranding\": 1, \"hl\": \"en_GB\", \"playsinline\": 1 } }'\n\t\t\t\tcrossorigin=\"\"><\/video><\/div><\/div>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"so\">1. So, what is carbon accounting?<\/h2>\n\n\n\n<p>Carbon accounting is a type of carbon footprint measurement that is predominantly based on existing accounting data.<\/p>\n\n\n\n<p>The process that sits behind carbon accounting is known as spend-based methodology and is recognised by the <a href=\"https:\/\/www.earth.sage.com\/blog\/whitepaper-an-overview-of-the-20-ghg-emissions-protocol-sub-categories\/\">Greenhouse Gas Protocol<\/a>.<\/p>\n\n\n\n<p>In a nutshell, spend-based methodology involves taking the financial value of a product or service and multiplying it by an emission factor. <\/p>\n\n\n\n<p>The final number gives you an estimate of the emissions produced by that product or service.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what\">2. What does carbon accounting allow you to do?<\/h2>\n\n\n\n<p>Carbon accounting allows you to measure the amount of greenhouse gas (GHG) your business is emitting into the atmosphere.<\/p>\n\n\n\n<p>Not only that\u2014it helps you set goals based on the resulting data to reduce your business\u2019s environmental impact. <\/p>\n\n\n\n<p>Remember: if you can measure it, you can master it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"why\">3. <strong>Why is carbon accounting software useful for SMBs?<\/strong><\/h2>\n\n\n\n<p>All businesses have accounting data\u2014it is reconciled, audited and offers a very good reflection of your full business activity. <\/p>\n\n\n\n<p>So, using it as the foundation for a carbon footprint saves you from having to find that data elsewhere.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"are\">4. Are there other ways to measure your carbon footprint?<\/h2>\n\n\n\n<p>Yes. Carbon accounting uses a predominantly spend-based model, but there are other ways to calculate your emissions.<\/p>\n\n\n\n<p>Activity-based methodology is another popular one, although that tends to be far more manual. Sage Earth actually uses a hybrid model, but we try to automate as much as possible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"is\">5. Is there any legislation forcing SMBs to adopt carbon accounting?<\/h2>\n\n\n\n<p>Right now, there isn\u2019t any formal legislation requiring SMBs to report their carbon emissions. <\/p>\n\n\n\n<p>Experts at Sage Earth do expect that to change in the coming years as legislation for enterprise businesses expands downward to smaller businesses.<br><br>SMBs are more likely to see carbon accounting being mandated by their larger enterprise customers, who already have to report their emissions (which include those of their suppliers).<\/p>\n\n\n\n<p>Hundreds of larger businesses have already started to request carbon data from their SMB suppliers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"where\">6. Where does Sage Earth fit in to all of this?<\/h2>\n\n\n\n<p>Today, UK <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/sage-accounting\/\">Sage Business Cloud Accounting<\/a> users can use Sage Earth to automate their carbon accounting needs.<\/p>\n\n\n\n<p>And from early 2023, Sage 50 will also be integrated. <\/p>\n\n\n\n<p>Sage Earth integrates with your Sage accounting software, pulls out key data, maps that data to conversion factors and generates a carbon footprint for your business.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Learn about Sage Earth<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">Discover how Sage Earth can help your business achieve net zero emissions in your operations and supply chain.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/sage-earth\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-13454\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Find out more<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1220287664-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1220287664-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The recently acquired Sage Earth team explains what carbon accounting is, and what it means for small and medium-sized businesses.  <\/p>\n","protected":false},"author":1603,"featured_media":11595,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":true,"post_featured_image_hide":false,"footnotes":""},"categories":[11],"tags":[233],"business_type":[4,3],"lilypad":[],"context":[],"industry":[],"persona":[71,73,74,75],"imagine_tag":[96,109],"coauthors":[394],"class_list":["post-13452","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology-innovation","tag-sustainability","business_type-small-business","business_type-medium-sized-business"],"sage_meta":{"region":"en-gb","author_name":"Duncan Oswald","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-808410210.jpg","imagine_tags":{"96":"Medium businesses","109":"Small 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