London, UK – 30th September 2025 — Sage (FTSE: SGE), the leader in accounting, financial, HR and payroll technology for small and mid-sized businesses, today announced that Carbon Accounting functionality, powered by Sage Earth, is now available to all Sage Accounting and Sage for Accountants customers in the UK. This new capability enables SMBs and their accountants to meet growing supply chain reporting requirements with the same ease and accuracy as their financial data.
With supply chains responsible for up to 95% of corporate emissions, large companies are turning to their suppliers for accurate data. This means small businesses are increasingly being asked to provide carbon reporting as part of contracts and tenders. However, according to Unlocking Sustainable Finance for SMEs, a report by Sage and the International Chamber of Commerce (ICC) launched at COP29, only 9% of SMEs currently have formal processes in place to measure and report sustainability data. A third cite lack of knowledge as a barrier, while nearly half point to finance as the biggest challenge.
Sage Earth Carbon Accounting addresses this challenge by enabling small businesses to measure, manage and report their emissions in the same platform they already use for accounting. Using AI to capture and categorise data from everyday financial transactions, the solution simplifies reporting and gives SMBs clear, trusted insights into their carbon footprint.
“As a small business, we’re increasingly being asked by larger customers to provide carbon data as part of contracts,” said Lisa Settle, Director, Ryland Communications. “Having Sage Earth Carbon Accounting supports our ambition to reach Net Zero, while also giving us the tools to respond to customer requests. That combination can make the difference between staying in or dropping out of a supply chain.”
Helping accountants guide clients on carbon reporting
Accountants are often the first place small businesses turn for advice. With Sage Earth Carbon Accounting now available in Sage for Accountants, firms can now support clients on carbon reporting in the same platform they already use for financial services.
This means accountants have the data needed to prepare the credible reports SMBs may need for tenders, customer supply chain requests, and green funding applications. It will also enable accountants to offer clear guidance on efficiency and sustainability - extending their role from financial advisers to trusted partners on both financial and environmental reporting.
“Carbon reporting is becoming a bigger part of the conversations we’re having with clients,” said Rebecca Trudgett, Founder, Switchfoot Accounting. “Sage Earth Carbon Accounting will allow us to deliver that advice with confidence, alongside the financial services we already provide. It will help us expand our role and support clients in ways we couldn’t before.”
Building a stronger Net Zero ecosystem
This launch forms part of Sage’s wider work to make carbon reporting more reliable and accessible for small businesses. Sage is supporting industry initiatives such as Project Perseus to improve access to UK energy data and has co-developed the UK Voluntary SME Carbon Reporting Standard with the Broadway Initiative and Business for Net Zero (B4NZ).
Sage has also helped establish Carbon Commons and the Carbon Accounting Alliance to promote consistent and transparent reporting. Earlier this year, Sage launched the Carbon Accounting API. This gives banks, fintechs and other platforms access to Sage’s carbon engine, extending decarbonisation across wider SMB networks.
“At Sage, we know small businesses are critical to tackling climate change, but too often they lack the tools and support to get started,” said George Sandilands, VP, Sage Earth. “Through Sage Earth, we’re building not only practical solutions like Sage Earth Carbon Accounting, but also the standards, partnerships and infrastructure that give SMBs the confidence to take meaningful action and demonstrate progress.”
To find out more about Sage Earth and Sage Earth Carbon Accounting visit here: https://www.sage.com/en-gb/sage-business-cloud/sage-earth/
About Sage
Sage exists to knock down barriers so everyone can thrive, starting with the millions of Small and Mid Sized Businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis.
Product Highlights
Sage Earth Carbon Accounting has been designed to make sustainability simple and actionable for small businesses and their accountants. Key features include:
