Carbon accounting challenges & how AI can solve them

The carbon accounting conversation no one is having

Carbon accounting is often framed as a numbers game, to track emissions, report them, and move on. But anyone who has actually tried to do it knows the real story: it’s complicated, messy, and often overwhelming. While the industry talks about compliance and regulations, there’s a whole other layer of challenges that most companies struggle with behind the scenes.

At eco-shaper, we’ve worked with companies of all sizes, and the same hidden challenges pop up time and time again. Let’s explore what’s really holding businesses back from efficient, impactful carbon reporting and what can be done about it.

1. Data collection is a nightmare

One of the biggest complaints from sustainability teams is that they feel like a burden, constantly chasing down colleagues for energy bills, travel data, and supplier emissions reports. In fact, in large companies, teams of five or more can spend an entire year just collecting the necessary data.

Why it’s a problem:

• Employees in different departments don’t prioritise sustainability data collection.
• Suppliers may be hesitant to share their carbon footprint numbers or lack the tools to measure them.
• Without a centralised, automated system, data tracking is inconsistent and unreliable.

Solution:

Companies that integrate carbon reporting into their core business operations rather than treating it as an isolated function see better engagement. Automating data collection through digital tools also drastically reduces the workload.

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2. Regulations change faster than companies can adapt

Europe has had mandated carbon reporting laws for years, while Australia is just starting to introduce its own legislation. The UK’s SECR (Streamlined Energy and Carbon Reporting) framework has forced mid-sized businesses to start reporting because large corporations need their data for compliance. This ripple effect is happening everywhere.

Why it’s a problem:

• Companies struggle to keep up with evolving global regulations.
• Different industries face different reporting requirements, making compliance confusing.
• Many businesses only react to regulatory pressure instead of preparing proactively.

Solution:

Staying ahead means treating sustainability reporting as an ongoing strategy rather than a once-a-year compliance task. Businesses need to integrate regulatory tracking into their workflow, ensuring they’re always ready for the next change.

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3. Scope 3 emissions: The impossible task?

Scope 3 emissions, those caused by a company’s supply chain and product use are by far the hardest to track. Some businesses choose to ignore them altogether because they seem impossible to measure accurately.

Why it’s a problem:

• Scope 3 makes up the bulk of most companies’ carbon footprints, yet remains largely unaccounted for.
• Tracking requires deep engagement with suppliers and customers.
• Many organisations don’t have the right tools to collect or verify this data.

Solution:

Companies that succeed in Scope 3 tracking make it easy for their suppliers and employees to contribute data. Some platforms provide individual logins for suppliers, employees, and stakeholders—ensuring their data feeds directly into the corporate reporting system with minimal manual effort.

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4. AI & automation can be a double-edged sword

AI-powered carbon tracking tools can analyze emissions faster than any human team, but they come with a major caveat: their own energy consumption. The rise of AI-driven sustainability solutions is exciting, but it’s important to ensure that technology itself isn’t creating a larger carbon footprint.

Why it’s a problem:

• AI models require massive data centers, consuming significant amounts of energy.
• Frequent automated scans of carbon footprints can increase digital emissions.
• Businesses often overlook the carbon cost of software solutions.

Solution:

Sustainability-focused AI should be designed with efficiency in mind. For example, instead of constantly scanning an organization’s carbon footprint, some platforms only generate reports at key intervals, minimizing unnecessary energy consumption.

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5. The hidden cost of doing nothing

Many businesses still see carbon reporting as an annoying obligation rather than a valuable tool. But those that ignore sustainability trends are taking a financial risk. Consider this:

• Large companies are now requiring sustainability data from their suppliers—meaning businesses that don’t measure their footprint could lose contracts.
• Investors are increasingly prioritizing ESG (Environmental, Social, and Governance) criteria when funding companies.
• Consumers are demanding transparency, and brands with weak sustainability initiatives are falling behind.

Solution:

Instead of viewing carbon accounting as a compliance headache, businesses should see it as an opportunity to build trust, attract investment, and future-proof their operations. Companies that prioritise sustainability are already seeing financial benefits in brand reputation, cost savings, and investor confidence.

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Making carbon accounting work for your business

At the end of the day, carbon accounting shouldn’t feel like an impossible task. The companies that get it right are the ones that invest in the right tools, automate processes where possible, and treat sustainability as a core part of their business, not just a box to check.

For businesses looking for a smarter way to approach carbon tracking, solutions exist that simplify the entire process, ensuring compliance, accuracy, and efficiency.

It’s time to stop seeing carbon accounting as a burden and start using it as a tool for real, impactful change.