🌿Carbon Accounting in Supply Chains: Why It Matters More Than Ever

Climate change is a real and undeniable threat to our entire civilization. The effects are already visible - rising temperatures, extreme weather events, melting glaciers, and biodiversity loss. If we do not act now, these changes will become catastrophic.

Reducing CO₂ emissions is no longer optional - it is urgent. We all need to do our part. This urgency is reflected in the United Nations Sustainable Development Goal (SDG) number 13: “Take urgent action to combat climate change and its impacts.” For businesses, this means integrating carbon reduction strategies into every level of operation, starting with the supply chain.

What Is Carbon Accounting in Supply Chains?

Carbon accounting is the process of measuring, analyzing, and reporting the greenhouse gas emissions generated by every step of a product’s journey - from raw material extraction to manufacturing, transportation, storage, and delivery to the end customer.

This includes:

  • Scope 1 emissions — direct emissions from owned or controlled sources.
  • Scope 2 emissions — indirect emissions from purchased energy.
  • Scope 3 emissions — indirect emissions across the entire supply chain, including suppliers, logistics, and product use.

Scope 3 emissions are often the largest and most complex part of a company’s carbon footprint - and the most critical to address for meaningful climate action.

Orixe’s CO₂ Calculator: A Step Toward Positive Change

At Orixe, our vision is to help businesses become more sustainable. As part of our collaboration with OsloMet and Gründergarasjen, we have developed a CO₂ calculator for businesses - because we know it is the right step to join the movement of positive change.

Our CO₂ calculator empowers businesses to measure, monitor, and reduce emissions across their supply chains. It provides clear insights into where emissions occur and making sustainability measurable and achievable.  

Why Carbon Accounting Matters in Supply Chains

Renewable Energy
  1. Compliance with Regulations:
    Global regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) and the EU Deforestation Regulation (EUDR) require transparent reporting of environmental impact. Carbon accounting enables companies to meet these requirements with confidence.
  1. Reducing Environmental Impact:
    Measuring emissions allows companies to identify “hotspots” in the supply chain and take targeted actions to reduce them - from optimizing transport routes to switching to renewable energy.
  1. Building Trust and Competitive Advantage:
    Consumers and B2B buyers increasingly demand proof of sustainability. Transparent carbon reporting strengthens brand reputation and provides a competitive edge.
  1. Managing Risks and Costs:
    Climate related risks - from resource scarcity to regulatory penalties are rising. Carbon accounting allows companies to foresee and mitigate these risks while improving operational efficiency.

The Future of Carbon Accounting

Technology is transforming carbon accounting from a manual reporting process into an automated, data-driven practice.
Platforms like Orixe integrate carbon accounting into supply chain management, enabling:

  • Real-time insights through yearly data updates
  • Data-driven sustainability strategies
  • Seamless reporting for compliance
  • Integration with traceability and audit systems

As regulations tighten and sustainability becomes a market differentiator, carbon accounting will no longer be optional. It will be a core part of how supply chains operate.

Conclusion

Carbon accounting is the foundation for a sustainable supply chain. It gives businesses the insight they need to measure impact, meet regulatory requirements, reduce emissions, and gain trust.

For exporters and manufacturers aiming to compete in global markets, investing in carbon accounting is a step toward resilience, transparency, and sustainability - and a way to answer the call of UN SDG 13: to take urgent action to combat climate change and its impacts.

+94 74 341 7035
orixe@orixe.lk
Orixe Technologies (Pvt) Ltd,
Orion City,
No. 752, Dr. Danister De Silva Mawatha,
Colombo 0900

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