Carbon accounting involves tracking, measuring, and reporting greenhouse gas emissions. Under the new Australian Accounting Standards, carbon emissions are becoming a reportable financial risk and disclosure item. Many organisations are now required to include carbon data alongside traditional financial reporting.

The Australian accounting standards introduce a staggered approach, of the following; two standards must be met.

While many SMEs are not yet mandated, carbon reporting is increasingly required as part of large company tenders and supplier onboarding.