Carbon GPT Debunks 5 Common Carbon Accounting Myths

Sustainability is becoming increasingly important, yet many businesses still hold onto misconceptions about their ability to make a real impact. From thinking their efforts won’t matter to believing the process is too complicated, these myths can prevent progress. By addressing five common sustainability myths, it becomes clear how businesses can make a meaningful difference in reducing their environmental footprint.

1) Small companies can’t make a difference

Many small business owners believe their efforts won’t make an impact compared to the massive emissions from large corporations in countries like China or the USA. While large industries hold significant responsibility, small and medium-sized enterprises (SMEs) play an important role too. SMEs often contribute to larger companies' emissions as part of their supply chains.

In New Zealand, where SMEs make up over 90% of businesses, their collective impact is critical to achieving the country's Net Zero 2050 goal. Every contribution, no matter how small, helps in the fight against climate change.

2) It’s not mandatory, so it’s not a priority

Many commodity traders think they aren't responsible for the emissions from their products or their customers' choices, and worry that tracking emissions could harm their reputation. However, by not measuring the full carbon impact of their products, traders miss important risks.

Emissions can vary significantly, and without understanding these differences, they may overlook potential environmental costs that could run into billions of dollars. With carbon regulations expanding globally, being transparent about emissions is crucial for managing these risks and complying with future rules.

Carbon accounting also helps companies avoid greenwashing and navigate carbon pricing, while positioning them to meet the growing consumer demand for sustainable practices. With 32% of consumers seeking sustainable brands and large corporations focusing on sustainability, companies that ignore this trend risk falling behind.

3) It's a complicated process

Many businesses struggle with carbon accounting, especially when it comes to Scope 3 emissions, which can make up to 90% of a company's carbon footprint. This is due to the lack of reliable data from suppliers, who often don't measure or share their emissions. However, businesses can use methods like the GHG Protocol and CDP’s supplier disclosure tools to estimate emissions, even when primary data is missing.

Specialized software and machine learning are also helping to fill in these data gaps. While carbon accounting may seem like an investment, it’s crucial for businesses to start now, especially with the new ISSB Sustainability Disclosure Standards requiring companies to report Scope 3 emissions.

Carbon accounting for smaller businesses is simpler than it seems. By quantifying business activities and applying the right emissions factors—many already published by organizations like New Zealand’s Ministry for the Environment—businesses can easily calculate their emissions. If your accounting records are up-to-date, you already have the information needed for emissions tracking.

4) It’s time consuming

This misconception stems from outdated practices. Modern tools like Carbon GPT, integrated with accounting software such as Xero or MYOB, make the process quick and simple. In fact, carbon emissions for a business can now be measured in as little as fifteen minutes. These tools use AI to automatically match accounting data with over 220 emissions factors, requiring minimal human input and saving significant time and effort.

5) It costs too much to start

Calculating carbon emissions doesn’t have to break the bank. If your accounting data is already managed through tools like Xero or even a basic Excel sheet, the only added expense is a software subscription. For instance, Carbon GPT offers a free plan with basic features, and paid plans start at just RM100 per month, providing ongoing tracking of emissions.

Integrating Carbon GPT into your process further enhances the accuracy and efficiency of emissions tracking. This investment not only supports emissions reduction but also forms the backbone of a long-term sustainability strategy—making it both affordable and valuable.

How Carbon GPT Can Help

Carbon GPT simplifies the process of measuring and reducing emissions by automating data collection, calculating emissions, and generating easy-to-understand reports. With its user-friendly platform, businesses can quickly assess their environmental impact, set reduction goals, and track progress over time.

By using AI to streamline emissions tracking, Carbon GPT helps companies make informed, sustainable decisions without the need for complex calculations or lengthy processes. This makes it an accessible tool for businesses of all sizes aiming to contribute to a more sustainable future.

Conclusion

Incorporating carbon tracking into your business operations doesn't have to be difficult, expensive, or time-consuming. With tools like Carbon GPT, businesses can easily track and manage their emissions using existing data, making the process more efficient and accurate.

Whether you're just starting or looking to expand your sustainability efforts, these solutions provide scalable options that help businesses of all sizes reduce their environmental impact and stay ahead of regulatory demands. Ultimately, investing in carbon emissions tracking is not just about compliance—it’s a crucial step towards building a sustainable future and a long-term strategy for success.