The Muamalat Newsletter Vol. 2 2024

FEM eNewsletter | December 2024 72 greenhouse gas emissions resulting from human activities (Di Vaio et al., 2024; Garveya et al., 2018). Cordova et al. (2021) assert that this methodology is essential for comprehending the carbon footprints of organisations, governments, and individuals, enabling the identification of emission sources and the implementation of measures to mitigate their environmental impact. Carbon accounting is crucial for fostering sustainable practices and ensuring adherence to regulations in the context of climate change. It aids in establishing and monitoring progress towards emission reduction objectives while also pinpointing opportunities to enhance energy efficiency and reduce expenses. Ultimately, carbon accounting empowers stakeholders to make informed decisions that foster a more sustainable and resilient future. Understanding Carbon Accounting Previous literature has demonstrated that carbon accounting assists firms, governments, and individuals in comprehending and analysing their environmental impacts. It evaluates a company’s total greenhouse gas emissions, encompassing both direct and indirect sources (Di Vaio et al., 2024; Garveya et al., 2018). In many nations, companies are required to annually disclose their greenhouse gas emissions, rendering carbon accounting an essential business activity. Numerous enterprises are diligently striving to mitigate their ecological footprint. Furthermore, carbon accounting derives its name from carbon dioxide(CO2),thepredominantgreenhousegas and the principal contributor to global climate change. Most carbon accounting systems quantify emissions of other greenhouse gases as their carbon dioxide equivalent, or CO2e. How to Measure Emissions Scope 1 Emissions - Referred to as “direct” emissions, these encompass all emissions produced by the company as a direct consequence of its operations. This encompasses emissions from industrial facilities or chemical operations, as well as energy generated on-site through the combustion of fossil fuels. Scope 2 Emissions -Encompass “indirect” emissions resulting from the generation of energy, steam, heating, and cooling that Source: https://www. brightest.io/ scope-1-2-3- emissions