Most e-commerce founders assume their biggest environmental impact is the packaging. It’s not. For most online retailers, the real emissions sit in supplier activity, shipping methods, returns, and even your cloud software. That’s why carbon accounting matters: not just for compliance, but for clarity.
Pressure is building from all sides. Platforms like Amazon are embedding sustainability into supplier criteria. Investors are asking climate questions in due diligence. Customers, especially younger ones, are looking for proof, and vague claims won’t cut it.
And now, governments are tightening requirements too. In the UK, SECR is already mandatory for many companies. Across the EU, the CSRD is expanding reporting obligations. Even beyond these, countries are stepping up individually — Spain, for example, just introduced new sustainability rules this week aimed at improving corporate climate transparency.
Carbon accounting gives you real data on where emissions come from, how to reduce them, and how to report them credibly. It turns sustainability from a vague idea into a measurable business process: one that protects growth, builds trust, and keeps your brand ahead of regulation.
Elver’s carbon accounting solution is designed for ecommerce. It is accountant-led, integrated with financial systems, and tailored for reporting requirements.
What is Carbon Accounting?
Carbon accounting is the process of quantifying greenhouse gas emissions from all relevant business activities. It provides the data that underpins sustainability reports and informs decisions on reductions and offsets.
- Carbon accounting means measuring emissions in a systematic, verifiable way.
- Carbon reporting means disclosing the measured emissions publicly or to regulators under accepted standards.
- Carbon offsetting means investing in emissions-reduction projects elsewhere to counterbalance unavoidable emissions.
Reporting actual measured data is far more effective than vague “green” claims. Real data holds brands accountable, builds credibility and supports long-term sustainability strategies.
Why Ecommerce Brands Can’t Ignore Carbon Accounting
Retail and Platform Requirements
Major platforms and retailers increasingly require supplier sustainability credentials. Brands that cannot supply emissions data risk losing placement opportunities, missing out on sustainability programmes or being deprioritised.
Customer Expectations for Transparency
Consumers, especially younger demographics, expect brands to back up eco claims with evidence. They reward businesses that publish credible sustainability data and distance themselves from those perceived as greenwashing.
Investor and Lender Demands
Investors and financial institutions include climate risk in their assessments. Carbon reporting has become part of due diligence. Brands without clear emissions data may struggle to secure funding or favourable terms.
Regulatory Compliance Pressure
In the UK, regulations such as SECR already apply to medium and large companies. In the EU, the CSRD expands sustainability reporting obligations. Although many small ecommerce brands are not yet affected, requirements are shifting. Preparing early reduces future disruption.
Operational and Cost Advantages
Measuring emissions often uncovers inefficiencies such as excessive packaging, poor shipping routes and high return rates. Addressing these issues lowers emissions and reduces operating costs at the same time.
The Three Scopes of Emissions in Ecommerce
Most e-commerce brands don’t operate factories, drive trucks, or burn fuel on-site — so at first glance, it’s easy to assume your carbon footprint is minimal. The largest and most overlooked emissions often come from services you don’t directly control: delivery networks, packaging suppliers, cloud platforms, and returns.
Carbon accounting solves this by classifying emissions into three scopes. This structure helps you focus your efforts where they’ll actually make a difference.
Scope 1 – Direct Emissions
These are emissions from sources a business owns or controls directly, such as fuel used in company vehicles or on-site heating systems. For many ecommerce brands, scope 1 is small. But if a company runs its own delivery fleet or uses fuel in warehouses, it must be included.
Scope 2 – Indirect Energy Use
Scope 2 covers emissions from purchased electricity, heating and cooling in offices and warehouses. Businesses often have utility bills for this data. Where precise records are missing, standard estimates based on floor area and energy type can be applied.
Scope 3 – The Ecommerce Footprint
Scope 3 is the broadest and usually the largest portion of emissions for an ecommerce brand. It includes emissions from:
- Shipping and delivery partners
- Returns and reverse logistics
- Packaging materials and disposal
- Supplier operations upstream
- Cloud services, data centres and digital infrastructure
- Employee commuting and business travel
Because scope 3 involves many external parties, it is complex but essential to capture for a full emissions picture.
How Carbon Accounting Works in Practice
Carbon accounting for ecommerce must be rigorous yet practical. Here is a step-by-step guide:
- Identify emission sources
Map every aspect of your business with emissions potential, such as logistics, packaging, returns, energy, supplier operations and digital services. - Collect data
Gather invoices, utility bills, shipping records and energy statements. For digital infrastructure, collect usage statistics or billing data. - Classify by scope
Assign each data point to Scope 1, 2 or 3. That structure ensures clarity in subsequent calculations. - Calculate emissions
Use approved emission factors to convert activity data (kilowatt-hours, kilometres, tonnes of material) into CO₂e (carbon dioxide equivalent). - Review and validate
Cross-check the results against industry benchmarks and internal expectations. Independent validation or audit can add credibility. - Report results
Prepare reports tailored to stakeholders such as regulators, investors, customers or platforms. - Analyse and act
Use the results to identify high-emission areas and plan reduction initiatives such as alternative packaging, efficient shipping or supplier engagement.
By embedding this process into ongoing operations, carbon accounting becomes part of strategic planning rather than a one-off task.
Benefits of Carbon Accounting and Sustainability Reporting Beyond Compliance
For years, carbon reporting was seen as a box-ticking exercise, something for enterprise ESG teams or public companies trying to avoid bad press. But for growing e-commerce brands, it’s becoming something else entirely: a competitive tool.
The data you gather through carbon accounting doesn’t just satisfy regulators. It reveals inefficiencies, strengthens your position with platforms and partners, and earns credibility with customers who are increasingly sceptical of vague eco claims. Done properly, it becomes less about obligation and more about opportunity.
Building Brand Trust and Loyalty
Publishing verified emissions data demonstrates commitment. It moves sustainability from vague claims to measurable action, something customers can actually trust.
In the UK, the CMA’s Green Claims Code 1 now requires environmental claims to be clear, truthful, and backed by evidence. Recent enforcement actions (including ASOS, Boohoo, and George) show that unsubstantiated claims carry legal and reputational risk.
Polling2 also shows that while customers care about sustainability, many are sceptical of jargon and confused by vague messaging. Clear, well-presented numbers cut through that noise, making your brand’s efforts easier to understand and harder to dismiss.
Visibility and Commercial Uplift
Sustainability credentials can improve visibility and conversion on platforms that promote eco-labelled products. For example, brands accepted into Amazon’s Climate Pledge Friendly programme have seen measurable sales increases after adoption — not because of guaranteed placement, but through stronger presentation and discoverability.
These programmes don’t offer shortcuts, but they do reward credibility. Verified carbon reporting makes it easier to qualify for them.
Marketing and Storytelling Opportunities
Verified carbon numbers allow brands to share progress in marketing campaigns, product labels and PR with authenticity.
Foundation for Credible Offsetting and Reduction
Accurate measurement creates a baseline. Reductions and offsets then become meaningful and defensible.
Unlocking Cost Savings and Efficiency
Carbon audits often reveal avoidable inefficiencies, from oversized packaging and poor cartonisation to redundant shipping routes and outdated materials. Reducing these not only cuts emissions but can also improve margins.
While specific outcomes vary by product and fulfilment setup, the mechanism is well-documented3: optimising packaging and freight leads to measurable cost and carbon savings. In the UK and EU, studies also show4 that adjusting last-mile delivery models — like using pickup points or negotiating greener SLAs with carriers — can reduce both environmental impact and logistics spend.
Carbon accounting helps identify where these opportunities exist, using data you already hold across logistics, fulfilment, and returns.
Stronger Alignment With Consumer Trends
Consumer preference is shifting towards climate-friendly products and practices. Brands that integrate sustainability reporting remain aligned with these long-term trends.
Common Challenges in Carbon Accounting and How to Overcome Them
Implementing carbon accounting is not always straightforward. Here are common challenges and practical solutions:
- Imperfect supplier data
Many suppliers do not have emissions records. Businesses can use industry averages, smart estimates or phased surveys to fill gaps while encouraging suppliers to improve transparency. - Limited in-house expertise or resources
Ecommerce teams are often focused on sales and fulfilment. Specialist accountants or consultants can handle carbon reporting accurately without straining internal capacity. - Complexity of Scope 3 emissions
Scope 3 involves shipping, packaging, returns and more. Breaking it into manageable categories and prioritising the largest contributors makes the process achievable. - Cost concerns
Smaller businesses may worry about expenses, but a staged approach, focusing first on the biggest emission sources, makes reporting affordable.
Elver helps ecommerce brands overcome these obstacles by integrating carbon accounting with financial data, making the process accurate, cost-effective and practical.
Elver’s Carbon Accounting Process for Ecommerce Brands
Elver E-Commerce Accountants provide a streamlined, ecommerce-specific approach to carbon accounting and reporting. We combine accounting expertise with knowledge of online retail operations.
- Data review and planning
Our team at Elver reviews financial, logistics and operational records to identify emission sources. - Emission modelling
Using recognised conversion factors, we calculate emissions across all scopes, adjusting for estimates where necessary. - Report creation
Elver carbon accounting team prepares sustainability reports aligned with UK and EU standards, tailored for your stakeholders. - Compliance and readiness support
Elver ensures reports meet regulatory, investor or marketplace requirements, while advising on reductions and offsets. - Ongoing improvement
Elver provides ongoing tracking, refinement of data and advice on emission reduction strategies.
What’s the Future of Carbon Accounting for Ecommerce Businesses?
In every industry, there’s a moment when something shifts from optional to expected. For e-commerce, carbon reporting is approaching that shift, not just for enterprise brands, but for any business that sells through regulated platforms or operates across borders.
In the UK, mandatory sustainability reporting is already in place for many medium and large companies under the Streamlined Energy and Carbon Reporting (SECR) framework. And these requirements aren’t staying at the enterprise level; they’re moving down the chain.
What this means for e-commerce brands:
- If you sell through or supply to a larger business, you’ll be expected to share emissions data, even if you’re not directly regulated.
- If you plan to raise investment, climate-related disclosures are becoming part of investor due diligence.
- And if you rely on platforms like Amazon or Shopify, sustainability metrics will increasingly affect visibility, promotion, and eligibility for certain programs.
Early adopters aren’t just avoiding future friction, they’re also gaining leverage. Brands that can produce real emissions data are in a stronger position to win partnerships, secure funding, and build long-term credibility. Yes, it’s a trend. But like remote work or digital payments, it’s becoming infrastructure and it’s shaping how platforms rank you, how investors assess you, and how customers choose you.
FAQs About Carbon Accounting and Carbon Reporting
How much does carbon accounting cost for an ecommerce business?
Costs vary depending on the number of employees, complexity and the level of verification needed. Elver offers scalable packages suited to different business models.
Do I need special software for carbon accounting, or can my accountant handle it?
In many cases, no specialist software is required. Elver integrates emissions measurement with your existing financial data and recommends tools only where automation adds value.
Can carbon accounting help me qualify for sustainability badges on Amazon or Shopify?
Yes. Verified emissions reports support eligibility for sustainability badges and programmes on these platforms.
How often should ecommerce brands update their carbon reports?
Most businesses update annually in line with fiscal cycles. Fast-growing companies or those under investor review may choose semi-annual or quarterly updates.
What happens if my suppliers do not share their emissions data?
Benchmarks and industry averages can be used initially. At the same time, requesting data from suppliers encourages them to improve transparency over time.
Sources:
- Green claims code: making environmental claims
- Public and business attitudes to the environment and climate change, Great Britain: 2024
- Georgakoudis, E.D et al., Appl. Sci. 2025, 15(15), 8289; https://doi.org/10.3390/app15158289
- R. Niemeijer, P. Buijs https://doi.org/10.1016/j.rser.2023.113630