By Thomas Mardahl, CEO & Founder, Rejoose
As the global economy accelerates toward net zero, carbon accounting is no longer a peripheral sustainability concern; it is becoming a core financial discipline. For finance leaders, this shift presents both a challenge and a strategic opportunity: to embed carbon data into the heart of financial decision-making.
Historically, sustainability reporting sat within compliance or ESG teams. But with the introduction of regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) and the emergence of global standards under the International Sustainability Standards Board (ISSB), carbon data is now subject to the same scrutiny as financial metrics. This evolution is not ideological, it is structural. Carbon, like capital, must be tracked, audited, and disclosed.
Finance departments are uniquely positioned to lead this transformation. The principles of financial reporting; traceability, auditability, and consistency; are now being applied to carbon. Emissions are categorised (Scope 1, 2, and 3), disclosures are mandated, and assurance is increasingly expected. In this context, the CFO’s office is becoming the natural home for carbon data governance.
From ESG to enterprise-wide accountability
As carbon reporting becomes more complex and decision-grade, organisations are reassigning responsibility. ESG teams remain vital, especially on strategy and governance, but the operational rigor required for carbon data, from internal controls to audit readiness, aligns more closely with finance.
This mirrors how finance already operates: while the CFO doesn’t “own” all spending, they are accountable for how it is reported and managed. The same logic now applies to emissions. Carbon data, like financial data, touches every part of the business, and must be treated with the same discipline.
Precision over estimation
Scope 3 emissions, particularly from purchased goods and services, represent the largest and most difficult part of a company’s footprint. Traditionally estimated using spend-based models, these figures are increasingly seen as insufficient. Regulators and stakeholders now expect more precision.
The shift is toward activity-based carbon accounting, using actual product-level data and lifecycle assessments (LCA) from suppliers. This approach enhances data integrity and auditability, and mirrors finance’s own evolution from spreadsheets to structured, integrated systems.
Speaking the language of finance
New metrics are emerging that align carbon with financial logic. Concepts like Yearly Carbon Cost (YCC) and Total Carbon Cost (TCC) allow emissions to be evaluated alongside cost of ownership, ROI, or depreciation. This enables carbon data to inform capital planning, procurement, and performance measurement.
The methodology is familiar: understand what is consumed, trace its origin, measure its impact, and report it consistently. By applying financial thinking to carbon, organisations can make more informed, strategic decisions.
Finance as a catalyst for net zero
As carbon reporting becomes mandatory, finance is being asked to provide more than oversight. It must deliver structure, system integration, and assurance. Sustainability will always be cross-functional, but carbon accounting, like financial accounting, requires the rigour and governance that finance excels at.
Finance leaders are not expected to be environmental experts. But they are experts in how organisations track, report, and improve performance. That expertise is now critical to achieving sustainability outcomes.
A dual-ledger future
The convergence of financial and carbon accounting is accelerating. With the CRSD setting the pace and global standards following suit, it’s becoming realistic to imagine businesses operating with dual ledgers: one in euros or pounds, the other in kilograms of CO₂e, each with monthly targets, annual goals, and performance reviews.
In today’s sustainability-focused economy, carbon accounting is not just a compliance exercise. It is a strategic imperative. By treating carbon with the same discipline as financials, finance teams can drive regulatory alignment, support environmental goals, and create long-term value for shareholders and society alike.
As businesses prioritise sustainability, the CFO’s role is no longer just evolving – it’s becoming central to shaping a greener future.
