Carbon Emissions Tracking and Reporting
Published
October 22, 2026
Last updated
October 22, 2026
Definition
Carbon emissions tracking and reporting is the ongoing measurement of an organization's greenhouse gas (GHG) emissions and their disclosure to regulators and investors. Most companies follow the GHG Protocol, developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). It groups emissions into 3 scopes:
- Scope 1 covers direct emissions from sources a company owns or controls
- Scope 2 covers purchased electricity and heat
- Scope 3 covers the value chain across 15 categories
Tracking means setting a baseline year, identifying emission sources, collecting activity data, and applying emission factors to calculate the company's carbon footprint. Companies then publish the results each year as a carbon disclosure. Under the EU Corporate Sustainability Reporting Directive (CSRD), companies reporting under ESRS E1 must disclose emissions following GHG Protocol methodology.
Scope 3 is usually the largest share of emissions and the hardest to measure, because it depends on supplier and customer data. For finance and sustainability teams, tying emissions to the drivers used in budgets and forecasts lets you plan reduction targets alongside cost and revenue.
Frequently Asked Questions
How is carbon emissions tracking and reporting different from a carbon footprint?
A carbon footprint is the total emissions figure for a company, product, or activity. Carbon emissions tracking and reporting is the ongoing process of measuring that figure over time and disclosing it in a standard format.
Which emission scopes do companies have to report?
The GHG Protocol Corporate Standard requires Scope 1 and Scope 2 reporting, while Scope 3 is optional but strongly recommended. Regulations can require all 3 scopes.
How are carbon emissions calculated?
Companies multiply activity data, such as liters of fuel burned or kilowatt-hours of electricity purchased, by the emission factor for that activity. They then compare annual totals against a baseline year to track progress.
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