Carbon accounting: regulations, opportunities and challenges

The pressure on companies to contribute to the fight against climate change is constantly growing. Investors, consumers and authorities are increasingly focusing on sustainability, environmental responsibility and regulatory requirements. For Swiss companies in particular, carbon accounting is becoming increasingly mandatory — whether at company level (corporate carbon footprint, CCF) or product level (product carbon footprint, PCF).

With national and international regulations such as the CSRD, the EU taxonomy and the carbon border adjustment mechanism (CBAM), companies must precisely record and report carbon emissions. At the same time, there are opportunities to secure competitive advantages through transparency and strategic emissions reductions.

Carbon accounting as a requirement for Swiss companies

Switzerland is closely interlinked with European markets, which means that not only national but also EU-wide regulations have a direct influence on Swiss companies.

Key regulations include:

• Non-financial reporting requirements (Art. 964a-c OR):Large companies must disclose ESG indicators, in particular CO₂ emissions.
• Mandatory Climate Information Regulation (TCFD):Companies are required to publish climate risks and emissions.
• Unfair Competition Act (UWG, greenwashing regulation):From 2025, companies must scientifically substantiate all climate statements.
• Corporate Sustainability Reporting Directive (CSRD):Switzerland is gradually adopting EU reporting requirements, which further increases the requirements for companies.

EU regulations with a direct impact on Switzerland

The European Green Deal and the net-zero strategy up to 2050 are creating further regulations that also affect Swiss companies:

• Corporate Sustainability Reporting Directive (CSRD): Requires comprehensive sustainability reporting for companies with business relationships in the EU.
• EU taxonomy: Classifies sustainable economic activities and influences investment decisions.
• Carbon Border Adjustment Mechanism (CBAM): From 2026, Swiss exporters must prove their carbon emissions and obtain certificates to avoid punitive tariffs.

Corporate Carbon Footprint (CCF): Carbon accounting at company level

Company-related carbon accounting records all emissions along the value chain and forms the basis for targeted reduction measures and transparent reporting. Emissions are divided into three categories:

Scope 1: Direct emissions that come from the company's own sources, such as from production plants, heating systems or the company's own vehicle fleet.

Scope 2: Indirect emissions resulting from the purchase of purchased energy, such as electricity or district heating. The level of these emissions depends heavily on the energy source used.

Scope 3: Other indirect emissions along the value chain, for example from suppliers, business trips, the use of sold products or their disposal. These often account for the largest share of the emissions and are particularly challenging to calculate.

A Coropoate Carbon Footprint requires precise data collection across all three scopes. Companies that address this at an early stage can comply with regulatory requirements, utilize efficiency potential and implement their climate goals in a targeted manner.

Challenges on conducting a CCF

• Data availability: A lot of relevant information is not collected centrally or difficult to access.
• Standardization: Different regulations make comparability and consistency of reporting difficult.
• Integration into business strategy: Emission reduction must be incorporated into everyday business life in an economically viable way.

Best practices for efficient implementation

• Use of standardized emission factors and digital analysis tools: The use of uniform emission factors and the use of specialized software solutions make it easier to calculate and compare emission data.
• Automated data collection for consistent reporting: Digital systems enable carbon emissions to be efficiently recorded, analyzed and converted into standardized reports, improving data quality and consistency.
• Close exchange with suppliers to improve data quality: Accurate carbon accounting requires reliable emissions data along the entire supply chain. Cooperation with suppliers is essential to increase data quality and create transparency.
• Focus on emission-intensive processes to maximize savings potential: Companies should specifically identify and prioritize the largest sources of emissions in order to implement the most effective reduction measures and achieve the greatest impact.

Product Carbon Footprint (PCF): Carbon accounting at product level

In addition to CCFs, PCFs are also becoming increasingly important. The Product Carbon Footprint (PCF) assesses the emissions of a product over the entire life cycle. A distinction is made between:

• Cradle to Gate: Carbon emissions from raw material extraction to the factory gate.
• Cradle-to-grave: Consideration of emissions over the entire life of the product up to disposal.

Challenges when calculating PCFs

• Supply chain complexity: Emissions must be attributed to individual production steps, which is complicated by global supply chains.
• Definition of system limits: Different methods such as Cradle-to-Gate or Cradle-to-Grave lead to varying results.
• Timeliness of data: Production processes change regularly, so PCF calculations must be continuously updated.

Best practices for efficient implementation

• Granular data collection throughout the entire life cycle: Ensuring accurate collection of data for every phase of the product life cycle — from raw material procurement to production and use to disposal. Use primary data (material weights, energy consumption) instead of rough estimates to improve accuracy.
• Hybrid calculation methods to close data gaps: Combining activity-based (real consumption data) and spend-based (finance-based estimates) methods to add missing data and improve the accuracy of the PCF calculation.
• Transparency and continuous improvement: Defining and making comprehensible assumptions, system limits and calculation models. Update PCF data at regular intervals to account for changes in supply chains, production, and usage.

EU requirements for Carbon accounting on products

• Ecodesign Regulation (2024): Extension of existing regulations to almost all product categories, with a focus on sustainability and longevity.
• Digital product passport (DPP): Collection and provision of emissions data for consumers and business partners.
• CBAM (Carbon border adjustment mechanism): Companies must disclose emissions for exported products to the EU.

PCF accounting in Switzerland: Stay competitive now

In Switzerland, there are currently no mandatory regulations for carbon accounting at product level. Yet there is growing pressure on companies to comply with EU requirements. For export-oriented companies in particular, the disclosure of PCF data is becoming increasingly important in order to avoid trade barriers and to position themselves competitively in the long term. Companies that already voluntarily make their PCF data transparent benefit from regulatory protection and can secure a clear market advantage through verifiable sustainability measures.