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Carbon accounting 101: What is it and why you should do it

In recent years, or even just the last few days, you’ll no doubt have heard companies making big claims to be ‘carbon neutral’, ‘climate positive’ or to become ‘net-zero’ by a certain date. Noble, no doubt, but all a bit arbitrary unless backed by solid evidence. To add foundations to your ambitions, you need carbon accounting…

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The term ‘carbon accounting’ summarises the process of getting said evidence. In other words, quantifying, tracking and reporting the amount of greenhouse gas emissions released into the atmosphere as a result of your business activity. 
In our <a href="https://ecologi.com/articles/blog/charting-the-path-to-net-zero-for-businesses" target="_blank" rel="noopener">Charting the path to net-zero for businesses blog</a> we showed that calculating emissions is a key stage in getting to net-zero. Carbon accounting forms the foundations of these calculations. It helps you understand your starting point,  find the emissions hotspots in your value chain, and pinpoint the biggest opportunities for reduction.

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Carbon footprint assessments can happen at a product or organisational level. At a product level, Product Life Cycle Assessments (or LCAs) evaluate the environmental impact of a product through its entire life cycle, including extraction and processing of raw materials, manufacturing, distribution, product usage, and finally end-of-life.
But for the purpose of this blog, we’ll be exploring organisational carbon footprinting. This means assessing the greenhouse gas emissions of a business’s operating activity through the entire value chain, including upstream suppliers and downstream processes like remote working, product use, disposal and pensions.

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What isn’t measured can’t be managed: The carbon accounting process 

A) The carbon audit 
Conducting a carbon audit lets you allocate responsibility for emissions to the relevant areas of your company and value chain. This will inform decisions on how operations can be decarbonised, and help you to set the right science-based targets. 
B) Target setting 
Target setting determines the level of ambition for your reduction strategy. It opens the door for  carbon accounting to forecast scenarios and strategies to meet these targets. It also allows you to spot the strategies that may appear more sustainable but could actually increase greenhouse gas emissions. For example, swapping to a material with a lower carbon footprint in raw materials, but with increased shipping emissions. *It’s worth noting that this assumes a narrow GHG emissions lens and there may be other environmental credentials unaccounted for in this process but which should be considered. 
C) Emissions reporting 
Carbon accounting isn’t a one-off job. An emissions inventory needs to be taken and reported annually during your journey to net-zero. This is how you’ll measure your performance and impact over time.. 
Emissions reporting is increasingly becoming an industry-standard requirement for many businesses.‍ Under regulations such as the SECR, larger and publicly-listed companies are required to disclose GHG emissions in their directors’ reports. Many investors are also mandating it as a requirement in order to assess liability and risk. High emissions within a difficult to decarbonise scope 3 value chain is considered a liability by some investors. 
By measuring and reporting your footprint, you also acquire supporting evidence for your environmental claims, and reduce the risk of greenwashing accusations. 
To learn more about Carbon Accounting, you can <a href="https://info.ecologi.com/webinar-carbon-accounting-101" target="_blank" rel="noopener">watch Ecologi&#8217;s Carbon Accounting 101 webinar here</a>.
You can measure your footprint and get started on your net-zero journey with <a href="https://ecologi.com/business/zero" target="_blank" rel="noopener">Ecologi Zero</a>, our free carbon footprinting tool for small and medium-sized enterprises.

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Hopescrolling: The good news timeline

It’s not all bad. While there’s a lot of negative news about the climate, let’s not forget the good stuff. Find climate wins, reasons to be hopeful and plenty of positivity in our good news timeline.

The good news timeline

Ready to make a difference for our planet? Get in touch, and let’s chat about how we can help you on your climate journey. 

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Ecologi acquires Net Zero Now

In a landmark move set to reshape corporate climate action, we’re excited to announce that Ecologi, the UK&#8217;s most trusted climate action platform, has acquired <a href="https://netzeronow.org/" target="_blank" rel="noopener">Net Zero Now</a>, the sector-specific carbon measurement and reduction platform for businesses.
The combined entity operating under the Ecologi brand will create a single solution for industry climate leadership towards net zero. The integration combines sector-specific carbon measurement and reduction with world class verified climate projects that supports businesses wherever they are on their net zero journey.

<h2>The game-changing impact of this acquisition</h2>
The strategic acquisition solves two fundamental challenges in corporate climate action: businesses have been forced to choose between fragmented solutions and generic ‘one size fits all’ approaches that ignore crucial sector-specific needs. By combining Net Zero Now&#8217;s sector-specific protocol expertise with Ecologi&#8217;s platform funding top-tier climate projects, we&#8217;re creating a tailored and complete solution helping businesses lead their industries towards net zero.

Reduce emissions.
<ul>
<li style="font-weight: 400;" aria-level="1">Measure Scope 1, 2 &amp; 3 emissions with sector-specific industry GHG protocols</li>
<li style="font-weight: 400;" aria-level="1">Set short term and long term reduction target emissions aligned to SBTi</li>
<li style="font-weight: 400;" aria-level="1">Tailored reduction plans for sector-specific emissions pathways</li>
</ul>
Restore our planet.
<ul>
<li style="font-weight: 400;" aria-level="1">Compensate for unavoidable emissions as you reduce them through 
funding verified, high-quality carbon avoidance and removal credits</li>
<li style="font-weight: 400;" aria-level="1">Contribute to global climate goals by funding climate Impact Funds for 
beyond value chain mitigation and/or as part of your products &amp; services</li>
</ul>
Report on progress.
<ul>
<li style="font-weight: 400;" aria-level="1">Corporate sustainability standards e.g. CSRD, SECR, SBTi, CDP, B Corp</li>
<li style="font-weight: 400;" aria-level="1">Sector specific standards e.g. Accountancy, Hospitality, Public Sector</li>
<li style="font-weight: 400;" aria-level="1">Custom climate impact reports and embeddable dashboards</li>
<li style="font-weight: 400;" aria-level="1">Communications toolkit for board and stakeholder engagement</li>
</ul>

Climate leadership starts here

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Neil Ross Russell, Managing Director of Net Zero Now, said:
<blockquote>Businesses want to take climate action, but they want to know they’re doing it right and what’s right for a restaurant business is not the same as what’s right for an accounting firm.  They need industry-specific guidance and clear pathways to climate leadership. By joining forces with Ecologi, we&#8217;re creating a platform that allows us to provide credible, simple and affordable, sector-specific, end-to-end climate solutions for businesses in our existing sectors and collaborate with industry partners on new sector-led solutions.</blockquote>

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The acquisition aligns with Ecologi&#8217;s mission to accelerate business climate action and grow our 24,000 strong customer base. Established sector protocols including hospitality and professional services will be the initial focus with plans to expand across additional industries throughout 2025.
With organisations under increasingly complex stakeholder and industry compliance demands for environmental accountability, this end-to-end solution also ensures streamlined reporting, monitoring progress, supply chain transparency, and voluntary disclosures. This transforms business leaders into climate leaders with the confidence to tackle their climate commitments head-on, communicating and meeting critical regulatory requirements like SECR, CSRD and SBTi.

<h2>More about Net Zero Now</h2>
Founded in 2021, Net Zero Now has developed a proprietary sector-led approach, which combines climate expertise alongside the sector knowledge and experience of relevant industry bodies, industry influencers and larger businesses to reach a consensus around what Net Zero means in practice for businesses in each sector. To date, the company has measured and validated 1.8 MtCO2e lifetime emissions supporting more than 50+ leading brands including Coca Cola Europacific Partners, L&#8217;Orèal, Heineken, Pernod Ricard, Subway, Hard Rock Cafe, Adnams, Edgbaston and James Cowper Kreston.

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Case studies

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4 hospitality companies leading the way on climate action

Sustainability is no longer a nice-to-have in the hospitality industry — it&#8217;s a business necessity. With increasing regulatory pressure, shifting customer expectations, and the growing impact of climate change, hospitality businesses are finding that taking action isn&#8217;t just about responsibility—it&#8217;s about resilience. This is particularly evident as 70% of Brits are now actively trying to live a more sustainable lifestyle (Nutritics, 2024), and 44% say sustainability is important in their choice of venue to visit (Morning Advertiser, 2023). From tackling food waste to cutting carbon emissions, the sector is facing both challenges and opportunities to drive meaningful change.
At the heart of this transformation is the food system. The hospitality industry relies on farming—a sector responsible for nearly 20% of global greenhouse gas emissions and one that is increasingly vulnerable to climate disruption. Rising temperatures, unpredictable weather, and supply chain instability are already affecting food availability and costs, making sustainability not just an ethical priority but a commercial imperative. This is reflected in consumer behavior, with 47% of consumers wanting more information about carbon footprints on menus, and 41% saying this information would influence their order (CGA Strategy, 2023).
Fortunately, forward-thinking hospitality businesses are stepping up, driven by clear market demand—34% of UK pub and restaurant goers are prepared to spend more in venues with strong sustainability credentials, increasing to 47% for Gen Z and Millennials (Sustainability Beat, 2023). This generational shift is significant, with consumers aged 18-34 being nearly twice as likely to pay more for sustainability than those aged 55+ (WaterAid, 2023).
As the food and beverage industry awakens to its environmental responsibilities, and with climate change threatening to fundamentally disrupt global food security, restaurants and food service enterprises are stepping up to take meaningful climate action. These pioneering businesses are demonstrating how sustainability can enhance business performance while making a positive environmental impact, even as they navigate the unique challenges of being both a contributor to and victim of climate change.
Read about four hospitality companies that are championing climate action, and explore how they are turning environmental challenges into business opportunities.
Whether it&#8217;s engaging employees, measuring carbon footprints, or developing new sustainable service offerings, these venues are setting the standard for a greener future in hospitality.
<ol>
<li>Hawksmoor: Leading Sustainability in Fine Dining</li>
<li>Freemans Event Partners: Pioneering Sustainable Event Catering</li>
<li>Lisini Pub Co: Family Legacy Meets Sustainable Innovation</li>
<li>The Assemblies: Pioneering Sustainable Hospitality in Bristol</li>
</ol>

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<h2>Hawksmoor: leading sustainability in fine dining</h2>
Key Improvements:
<ul>
<li> Achieved B Corp certification in September 2022</li>
<li>Comprehensive review of operational sustainability across all locations</li>
<li>Implementation of energy reduction initiatives</li>
<li>Enhanced waste management systems</li>
<li>Water conservation measures</li>
<li>Integration of sustainability into staff training programs</li>
</ul>
Hawksmoor&#8217;s journey exemplifies how restaurant groups can lead in sustainability within the hospitality sector. Their comprehensive approach includes setting ambitious net-zero targets for 2030 while focusing on immediate operational improvements. The restaurant group&#8217;s commitment is evidenced by their systematic review of day-to-day operations across their locations in London, Manchester, Edinburgh, and New York. What sets them apart is their holistic approach to sustainability: examining energy usage, waste management, and water consumption while maintaining their reputation for quality dining. Their structured approach to employee engagement includes a two-day intensive induction program that emphasises sustainability, making it a core part of their culture.
Ellie Besley-Gould, Head of Purpose at Hawksmoor, said:
<blockquote>We&#8217;ve been heavily involved with the Sustainable Restaurant Association since about 12 years ago&#8230; It&#8217;s a really important area for us to be stepping up the work in, looking at how we can inspire change.</blockquote>

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<h2>Freemans Event Partners: pioneering sustainable event catering</h2>
Key Improvements:
<ul>
<li>Achieved 38.4% reduction in emissions compared to projections</li>
<li>Implemented innovative &#8220;Zero Zone&#8221; testing area</li>
<li>Introduced shuttle buggies for reduced transport emissions</li>
<li>Deployed hybrid power generators</li>
<li>Established carbon menu labelling</li>
<li>Enhanced waste management through compostable solutions</li>
</ul>
Freemans Event Partners&#8217; journey demonstrates how large-scale event catering can embrace sustainability without compromising service quality. Their innovative approach at the British Grand Prix showcases their commitment to reducing environmental impact in high-pressure environments. The company&#8217;s dedication is evidenced by exceeding their initial 5% emissions reduction target and implementing a groundbreaking &#8220;Zero Zone&#8221; area for testing new sustainability initiatives. What sets them apart is their data-driven approach to sustainability: measuring and analysing emissions across all aspects of their operation, from food stalls to logistics and waste management.
Richard West, Sustainability Manager at Freemans Event Partners, said:
<blockquote>Through partnering we&#8217;ve realised that collaboration is key to making lasting and impactful environmental changes in the events catering industry. The process has been much more straightforward than we thought it would be and we look forward to setting even bigger reductions targets as we go forward.</blockquote>

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<h2>Lisini Pub Co: family legacy meets sustainable innovation</h2>
Key Improvements:
<ul>
<li>Reduced scope 1 and 2 emissions by 48% through renewable electricity</li>
<li>Won the Flor de Cana Rum Sustainability Award</li>
<li>Achieved lowest electricity demand in 10 years</li>
<li>Implemented LED lighting and sensor systems</li>
<li>Launched biodiversity project at Dalziel Park</li>
<li>Developed sustainable kitchen practices and menu innovation</li>
<li>Created venue-specific green teams</li>
</ul>
Lisini Pub Co&#8217;s journey demonstrates how family-owned hospitality businesses can transform their environmental impact while preserving their heritage. Their comprehensive approach combines traditional Scottish hospitality with modern sustainability practices across their venues, including the historic Angels hotel in Uddingston. What sets them apart is their innovative approach to sustainability: implementing competitive green teams across venues, achieving dramatic emissions reductions, and maintaining their commitment to quality service. Their structured approach includes both operational improvements and employee engagement, making sustainability a core part of their 45-year family legacy.
Siobhan Edwards, Director Lisini Pub Group, said:
<blockquote>It&#8217;s not until we&#8217;ve been working in the last year that we&#8217;ve really truly understood our carbon footprint. It&#8217;s the right thing to do, it&#8217;s the right thing for our customers, for our planet, for the environment, and actually it saves us money at the same time.</blockquote>

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<h2>The Assemblies: Pioneering Sustainable Hospitality in Bristol</h2>
Key Improvements:
<ul>
<li>Established 100-mile radius local sourcing policy</li>
<li>Implemented full venue LED lighting systems</li>
<li>Introduced reusable cups for music events</li>
<li>Developed nose-to-tail food waste reduction policy</li>
<li>Created vegetarian menu options to reduce emissions</li>
<li>Enhanced supplier partnerships for sustainability</li>
<li>Achieved an impressive 3-star rating in the Food Made Good Standard, scoring 92% overall and 91% specifically in environmental practices</li>
</ul>
The Assemblies&#8217; journey showcases how urban hospitality venues can lead in sustainability while building strong community connections. Since their inception in 2009, they&#8217;ve demonstrated that local sourcing and environmental responsibility can coexist with business success. What sets them apart is their data-driven approach to sustainability: analysing carbon ratings, implementing local sourcing policies, and creating innovative menu solutions. Their comprehensive strategy includes everything from sound system upgrades to waste reduction initiatives, making sustainability integral to their operation.
Anna Blightman, Brand Marketing Manager, said:
<blockquote>Something that our partnership has allowed us to do, is lay all the data out on the table so that we can actually look at it, and stand to analyse it and understand where we can make changes. If we don&#8217;t start now, when will we start?</blockquote>

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As these leading hospitality companies show, meaningful climate action can drive significant business benefits—from stronger customer and employee engagement to enhanced brand reputation and risk mitigation. By taking a thoughtful, transparent, and impactful approach, businesses can pave the way for a sustainable future.
Ready to take the lead in climate action? Book in a 30 minute discovery call with our Hospitality sector experts and find out more about partnering with Ecologi to measure your emissions, set reduction goals and fund high-quality climate action on the road to net-zero.

Carbon accounting 101: What is it and why you should do it

What is carbon accounting?

Organisational vs product footprinting

What isn’t measured can’t be managed: The carbon accounting process

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Hopescrolling: The good news timeline

Ecologi acquires Net Zero Now

4 hospitality companies leading the way on climate action

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