Carbon Accounting is a process that facilitates measuring the amounts of carbon dioxide emitted by an enterprise. That enterprise could be individual, corporate, state or a nation. It is an emerging field of business economics. Carbon Accounting includes the measurement, calculation, monitoring, reporting and auditing of green house gas emissions at organizational, process, product or supply chain level. Carbon along with other green house gases plays a significant role in regulating earth’s temperature. These green house gases are also responsible for rising sea levels, extreme and more variable weather along with changes in the availability of fresh water, changing growing seasons and other agricultural impacts. This paper discusses the greenhouse gas emission accounting and the methods and tools of carbon accounting. It also discusses the steps to be taken by the companies to improve social and environmental performance.

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Keywords: Carbon Accounting, Industrial Organization, Sustainable Development, Green House.