What is carbon accounting – and does your company need to do it?

What is carbon accounting?

Carbon accounting shows how big your company's climate impact is. You calculate your greenhouse gas emissions and convert them into carbon dioxide equivalents (CO₂e). This is a way to compare different greenhouse gases, such as carbon dioxide and methane, using the same measure.

Climate reporting is the next step: sharing the results with others, for example customers, banks or in your annual report. Without a calculation, there is nothing to base a report on – and no clear picture of where you need to cut emissions.

Scope 1, 2 and 3 – in plain English

Most companies calculate according to the GHG Protocol (Greenhouse Gas Protocol), which divides greenhouse gas emissions into three scopes [1].

Scope 1 covers your own direct emissions, for example from company cars. Scope 2 covers emissions from the energy you buy – electricity, heating and cooling. Scope 3 covers all other climate impact in your value chain: purchased goods and materials, transport and business travel.

Scope 3 is usually the largest. For most companies, it accounts for more than 80 percent of total emissions [2]. It is also where getting good data takes the most time, since the emissions happen at other companies.

Skip the maths. GoClimate calculates your emissions according to the GHG Protocol, based on your invoices and receipts. 

There are several types of climate calculations

Which method to use depends on what you want to know – different calculations answer different questions. Here are the three most common.

Carbon footprint for an organisation

This is the most common type. It shows the emissions from your entire business over a year and is used as the basis for climate reporting and targets. Emissions are calculated according to the GHG Protocol.

LCA for a product

An LCA, or life cycle assessment, shows the climate impact of a product over its whole life – from raw materials and manufacturing to use and disposal. The method follows ISO 14040 and 14044 [3].

An LCA is often used to compare products or materials with each other. It can also show which step in production has the largest climate impact. A tip: do an LCA once you already have a handle on your organisation's total emissions.

Climate declaration for buildings

In Sweden, a climate declaration is required for new buildings where the building permit application was submitted on or after 1 January 2022 [4]. It states the building's climate impact in kilograms of CO₂e per square metre [5].

Some buildings are exempt, for example buildings with a temporary permit for a maximum of two years [4]. More requirements are on the way: by 2030 at the latest, EU member states must set limit values for how much climate impact new buildings may have [6]. Sweden must submit its plan for this to the EU by 1 January 2027 [7].

Why should you calculate your emissions?

Carbon accounting has become business-critical – and for some, a legal requirement. The largest companies must report their emissions under CSRD [13][14], and new buildings require a climate declaration [4].

Most small and medium-sized companies have no legal obligation to report, but there are good reasons to calculate your emissions anyway.

Create a sustainability report under the voluntary EU standard VS with GoClimate. 

Customers are asking

Large organisations that report must keep track of emissions across their value chain. That is why they ask their suppliers for information – and that supplier could be you.

Banks and investors want to know

Banks are increasingly looking at climate risk. The voluntary standard VS even has a separate module for the information banks and investors typically ask for [8].

Anna Blomstergren at Handelsbanken explains how access to reliable sustainability data is changing business relationships across Sweden.

Public tenders require it

More and more public organisations factor climate impact into their tenders. If you have your numbers ready, you are in a stronger position.

You see where your emissions come from

When you know which purchases and suppliers cause the most emissions, you also know where it pays to start cutting. The numbers become a tool for better decisions.

What do you need for a good calculation?

There are several ways to gather data, and the better the data, the more reliable the calculation. Here are three levels.

Spend-based calculations

These use what you have paid for goods and services. It is quick and gives a good overview. The downside is that the calculation does not reflect which materials and products you actually buy.

Activity-based calculations

These use quantities, for example kilowatt hours, litres of fuel or kilometres driven. It takes more time, but gives you a more accurate picture of your emissions and climate impact. GoClimate mainly works with this type of data.

Supplier data

The most accurate level is figures straight from your suppliers, for example an LCA for their products. Most companies start with a mix of levels and improve their calculation year by year. Even smaller organisations can get far by combining several sources.

What is an emission factor?

An emission factor shows how much emissions a certain activity causes, for example per kilowatt hour of electricity, per litre of diesel or per krona spent. It is usually given in kilograms of CO₂e per unit [9].

The other part of the calculation is activity data. This is the quantity of what you have done or bought during a period, for example litres of fuel, kilowatt hours of electricity or kilometres driven [9]. You can often find activity data on invoices, electricity bills and travel records.

The calculation itself is simple: activity data multiplied by the emission factor gives you your emissions [9]. If you have filled up with 1,000 litres of diesel, you multiply 1,000 by the emission factor for diesel.

In Sweden, the Swedish Environmental Protection Agency (Naturvårdsverket) publishes average emission factors for fuels every year [10]. These only cover emissions at the point of combustion, not the full life cycle [10]. That is why it is important to know which factor you are using and what it covers.

Spend-based factors are based on averages for a whole industry. They are an easy way to find your biggest emission sources, but they do not capture differences between individual suppliers [11]. Curious to learn more? Read our guide to emission factors.

What is CSRD?

CSRD is the EU's set of rules for sustainability reporting. It requires certain companies to report how they affect the climate, the environment and people, according to the EU standard ESRS. When emissions are calculated in the climate section, ESRS E1, the GHG Protocol is used – the same method most companies use for their carbon accounting [1].

In Sweden, the rules were added to the Annual Accounts Act on 1 July 2024 [12]. The first to report were large listed companies with more than 500 employees, which published their first reports in 2025 [13].

Who is covered today?

Originally, far more companies were going to be covered. In Sweden, the threshold was 250 employees [15]. But after the EU's simplification package, the Omnibus, CSRD only applies to companies with both more than 1,000 employees and more than EUR 450 million in turnover [13][14].

This means that around 90 percent of companies no longer have a legal requirement [16]. Listed small and medium-sized companies are also exempt [13]. Large companies that are still covered but do not already report will do so for the first time for the 2027 financial year [13]. But even if smaller companies avoid the legal requirement, they do not avoid the questions. Large companies must report emissions across their entire value chain, so they ask their suppliers for climate data [1][14].

What applies in Sweden?

The changes have been decided at EU level, but each country must bring them into national law by 19 March 2027 [17]. In Sweden, the government inquiry SOU 2026:27 proposes that the new rules apply from 1 January 2027, with a turnover threshold of SEK 4.9 billion [12]. The Riksdag (Swedish parliament) will decide on the proposal, so keep an eye on what happens.

What is the Omnibus?

The Omnibus is the EU's package to simplify sustainability rules. It is no longer just a proposal: the directive entered into force on 18 March 2026 [14].

The value chain cap protects smaller companies

If you have no more than 1,000 employees, you can say no when a large customer asks for more information for its sustainability report than the VS standard contains [14]. The cap applies from financial years starting 1 January 2027 [18].

But the cap only covers requests related to the customer's sustainability reporting. In a tender or for other business reasons, customers can still ask for more [19][20]. You can say no, but that puts you at a disadvantage against competitors who can answer – and you risk losing the deal. That is why it pays to have your climate data ready today.

From VSME to VS

VSME was the standard EFRAG developed for small and medium-sized companies. On 3 July 2026, the European Commission turned it into law under the name Voluntary Standard, or VS [8]. It entered into force on 24 September 2026 [18].

VS is voluntary and can be used by any company not covered by CSRD [18]. It also sets the limit for what large customers may ask for.

Basic module and comprehensive module

VS has two parts. The basic module is the minimum level. The comprehensive module builds on it with more information that banks, investors and large customers often want [8][21].

EFRAG has also published guidance for the standard [21]. It shows which information should be included and how your GHG Protocol carbon accounting fits in.

Make your VS report hassle-free. GoClimate gives you climate data that fits straight into VS.

The climate targets remain

Fewer legal requirements do not mean lower ambitions. The EU aims to be climate neutral by 2050 and now has a binding target of cutting net greenhouse gas emissions by 90 percent by 2040, compared with 1990 [22].

The targets apply to the EU as a whole, not to individual companies. But they shape the requirements and rules that eventually affect everyone – including you, even if you are not required to report by law.

How to do your first carbon footprint

Even if you avoid the legal requirements, you are often affected anyway, through your customers. Large companies must report climate impact across their entire value chain, so they will ask their suppliers for data [1]. These five steps will get you prepared.

1. Find out what applies to you

First, check whether you are covered by CSRD. If not, VS is probably the right standard for you. Also find out what your customers and your bank usually ask for. It is important to know which standard to use before you start, as it determines how emissions are calculated and which climate impact you need to report.

2. Collect data

Most of what you need is already in your bookkeeping and can be used directly to calculate emissions – for example energy, travel, transport and purchases. If you report under VS, information about your workforce is also included [21].

Connect your bookkeeping and get answers right away. GoClimate collects data from your invoices and receipts automatically.

3. Set up simple routines

Decide who is responsible and how often you follow up. The numbers can then be used in quotes, tenders and sustainability reports. It is important to calculate the same way every year, so that each new calculation can be compared with the last.

 With GoClimate, you get updated numbers every month.

4. Talk to your biggest customers

Ask what they need, both for their sustainability report and in upcoming tenders. That way you do not have to guess and can respond quickly. It saves time for both sides.

5. Train your team

It is important that more than one person understands the basics of carbon accounting and sustainability reporting. That makes the work less vulnerable and makes it easier to carry out changes that reduce your climate impact.

Summary

Fewer companies are required to report by law today, but the demand for climate data remains. It comes from customers, banks and tenders.

With VS, there is now a clear standard to lean on. The most important thing is to get started: begin with your carbon footprint, and you will have the foundation in place when customers get in touch. And the sooner you start calculating, the sooner you can cut your climate impact.

Let GoClimate do the maths

GoClimate is a tool that automatically calculates your company's emissions according to the GHG Protocol, based on invoices and receipts. You can see which suppliers account for the most emissions, set targets in line with SBTi and track them month by month.

With scope overviews, industry benchmarks and concrete suggestions for action, you get help understanding where to start – and data that works for both VS and CSRD. Want to know more? Get in touch and we will tell you more.

Book a demo or try GoClimate today. 

On our page about the Omnibus and VS, you can find more information about the new rules.

If you have any questions, you are welcome to contact us.