ZeroCarbon Enterprise Logo

How Startups Can Track Carbon Emissions, and When to Offset

How a startup can measure its first carbon footprint in a month, what usually matters most, and where carbon offsets fit without misleading anyone.

Akshit Tiwari

Akshit Tiwari

3 min read

Key takeaways

  • A startup can produce a credible first footprint in about a month from data it already has: electricity bills, travel bookings and supplier invoices.
  • For most office-based startups, purchased goods and services, business travel and electricity are the largest items.
  • Measure first, reduce second, offset last. Under the GHG Protocol, offsets are reported separately and never subtracted from your Scope 1, 2 or 3 totals.
  • If you buy credits, buy few and good ones, say what they are, and do not call the company carbon neutral on the strength of them alone.

Investors, enterprise customers and large buyers increasingly ask startups for a carbon number, often on a supplier questionnaire. The good news is that a young company's footprint is simpler than a factory's, and most of the data already sits in your accounts. Here is a way to do it properly the first time.

Step 1: Draw the boundary

Decide which operations count. Most companies use operational control: everything you run day to day, including a rented office or coworking desks. Write the choice down; it decides what goes in every later year.

Step 2: Find the items that matter

ScopeSourceWhere the data is
Scope 1Diesel for a backup generator, company vehiclesFuel invoices, stock register
Scope 2Electricity for the office or your share of a coworking spaceElectricity bills, or the kWh the operator allocates to you
Scope 3, category 1Purchased goods and services: cloud, software, agencies, laptopsAccounts payable, invoices
Scope 3, category 6Business travel: flights, trains, hotels, taxisTravel bookings, expense claims
Scope 3, category 7Employee commuting and working from homeA short staff survey
Where a typical office-based startup's emissions come from, by GHG Protocol scope.

Scope 1 and 2 are often small for a startup. Scope 3 is usually the bulk, and purchased services the biggest part of it.

Step 3: Turn activity into CO2e

  • Electricity: kWh multiplied by the national grid factor for the year: 0.675 kg CO2e per kWh in India for FY 2025-26 (CEA). See the CEA factor guide.
  • Fuel: litres multiplied by the fuel's factor, about 2.688 kg CO2e per litre of diesel in India.
  • Flights: distance per traveller multiplied by a factor for short, medium or long haul.
  • Purchased services: where you only know the spend, use a spend-based factor per rupee, and replace it with supplier data over time. Spend-based and activity-based methods explains the trade-off.

You can run each of these in the free calculator or the keyless emissions API, and every result shows the factor and its source.

Step 4: Reduce before you offset

Start with the largest items you control: a cleaner electricity contract or renewable certificates for the office, a travel policy that prefers trains for short trips, and asking your biggest suppliers for their own emissions data. Each cut shows up in next year's inventory; an offset does not.

Step 5: Where offsets fit

  • Report them separately. Under the GHG Protocol, purchased credits are not subtracted from your Scope 1, 2 or 3 totals. Show the gross inventory, then the credits beside it.
  • They do not count toward science-based targets. The Science Based Targets initiative's net-zero standard does not let credits count as reductions; they are for addressing emissions beyond your value chain or neutralising what is left at the end.
  • Buy quality. Look for credits that meet the Integrity Council for the Voluntary Carbon Market's Core Carbon Principles, with the project, vintage and registry stated.
  • Claim carefully. "We measured our footprint and are cutting it, and we also fund these projects" is defensible. "Carbon neutral" on credits alone invites challenge.

ZeroCarbon keeps the inventory, the evidence behind each figure and the factor used, so the number you give an investor or a buyer can be traced back to a bill.

Frequently asked questions

How can a startup track its carbon emissions?+

Set an operational boundary, list the sources (electricity, fuel, travel, purchased services, commuting), collect twelve months of bills, bookings and invoices, multiply each by a published emission factor, and review the largest items.

Should startups buy carbon offsets?+

Only after measuring and cutting what they can. Offsets are reported separately from the inventory, do not count toward science-based targets, and should meet recognised quality criteria such as the ICVCM Core Carbon Principles.

What is the biggest source of emissions for a software startup?+

Usually Scope 3 purchased goods and services, such as cloud, software and agencies, followed by business travel. Office electricity is often smaller.

Sources

  1. 1.GHG Protocol Corporate Accounting and Reporting Standard · GHG Protocol
  2. 2.Corporate Value Chain (Scope 3) Standard · GHG Protocol
  3. 3.Corporate Net-Zero Standard · Science Based Targets initiative
  4. 4.The Core Carbon Principles · Integrity Council for the Voluntary Carbon Market

This article is general information, not legal or tax advice. Regulations change; check the primary source before acting.

All posts

// ZEROCARBON

Emissions data you can defend, prepared by agents, approved by you.

Pre-register