Carbon accounting for professional & legal services

Carbon accounting is a way for businesses to calculate and report their greenhouse gas emissions. 

It’s an essential tool for meeting sustainability reporting legislation – but it can also have benefits far beyond compliance for professional and legal services firms.

Your clients, employees, and investors are increasingly demanding transparency and action on environmental issues. In fact, 33% of professional services industry executives see sustainability as the top priority to improve revenue growth.

By implementing robust carbon accounting practices, your firm can:

• Meet client expectations and win new business
  
• Comply with expanding regulations
  
• Attract and retain top talent
  
• Reduce operational costs
  
• Mitigate climate-related risks

Here’s how carbon accounting supports these goals and drives business success.

ESG impacts: Carbon accounting as a cornerstone of sustainability

Environmental, Social, and Governance (ESG) considerations have become central to business strategy, and carbon accounting plays a vital role in the “E” of ESG. 

The emissions inventory calculated using carbon accounting provides the data needed to comply with environmental regulations, like CSRD in the EU and SECR in the UK. These regulations are expanding rapidly, with CSRD reporting starting in 2025 and SECR already requiring many UK businesses to report their emissions annually. Your firm must not only prepare for its own compliance – but also anticipate the growing demand from clients who will need expert guidance in navigating these complex reporting landscapes.

Beyond compliance, carbon accounting is crucial for addressing the broader environmental impacts of your firm. For professional services firms, a significant portion of emissions often occur in scope 3 categories like “Purchased goods and services,” “Business travel,” and “Employee commuting.” By accurately calculating and reporting these emissions, your firm can identify key areas for reduction and develop targeted strategies to minimize its environmental footprint.

Carbon accounting also plays a critical role in social responsibility and governance aspects of ESG. By transparently reporting your carbon footprint, you demonstrate your commitment to social responsibility.

From a governance perspective, implementing robust carbon accounting practices enhances transparency, accountability, and risk management. This strengthens your firm’s overall ESG performance, improving your standing with investors and stakeholders who increasingly prioritize sustainability in their decision-making processes.

Beyond ESG: The business case for carbon accounting

Carbon accounting’s benefits extend far beyond regulatory requirements and ESG metrics. You can use it to drive real business value across the key business areas detailed below:

Cost reduction

Carbon accounting identifies emissions hotspots in your operations, allowing you to target energy-intensive activities and reduce associated costs.

For example, a firm that has a large proportion of emissions in scope 3 “business travel” could reduce emissions by implementing video conferencing technology and updating policies to prioritize train travel over flying. This approach could significantly decrease both travel expenses and carbon footprint.

Risk mitigation

By understanding your carbon footprint, you can better anticipate and mitigate climate-related risks. This includes physical risks to your operations and transition risks as the economy shifts towards low-carbon alternatives.

For instance, a firm might use carbon accounting to identify energy-intensive processes in its operations. This insight could prompt the firm to invest in energy-efficient technologies or renewable energy sources, reducing its exposure to potential future carbon pricing mechanisms or energy price volatility.

Enhanced reputation and client acquisition

A robust carbon accounting program demonstrates your firm’s commitment to sustainability, enhancing your reputation and helping you win new clients. In an increasingly competitive market, this differentiation can be a key factor in securing new business.

For example, a firm that implements comprehensive carbon accounting could showcase its sustainability efforts in client proposals. This could lead to winning contracts with organizations that prioritize – or mandate – signing contracts with environmentally responsible partners.

Talent attraction and retention

Young professionals are increasingly seeking employers who prioritize sustainability. 50% of Gen Zs and 46% of millennials say they and their colleagues are pressuring businesses to take action on climate change. 

By showcasing your carbon reduction efforts, you can attract top talent and improve employee retention.

Operational efficiency

Carbon accounting often reveals inefficiencies in your operations. By addressing these, you can streamline processes and reduce waste, leading to improved overall efficiency.

For instance, a firm might use carbon accounting data to identify excessive energy consumption in its offices. By implementing smart building technologies and encouraging energy-saving behaviors, the firm could reduce its energy costs while also improving its carbon footprint.

Empower your firm with carbon accounting

Carbon accounting is an essential tool for professional and legal services firms looking to navigate the challenges and opportunities of a sustainability-focused business landscape.

By providing comprehensive emissions data, actionable insights, and support for reduction initiatives, carbon accounting empowers firms to meet their sustainability goals while driving business growth. 

As regulations tighten and stakeholder expectations evolve, implementing robust carbon accounting practices is not just an environmental imperative – it’s a strategic necessity for firms aiming to lead in their field.