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Carbon accounting: A business imperative for the Net Zero era

With carbon reporting becoming increasingly important in the UAE, measuring greenhouse gas emissions is fast becoming a business necessity rather than a compliance exercise

  • PUBLISHED: Thu 9 Jul 2026, 1:53 PM

Every time a company vehicle hits the road, an office building switches on its air conditioning, or a warehouse powers its operations, greenhouse gases are released into the atmosphere. Multiply that across thousands of businesses operating every day, and the scale of emissions becomes immense. Yet for decades, much of it remained unmeasured and largely invisible.

Today, that is beginning to change.

As the UAE advances towards its Net Zero 2050 Strategic Initiative, carbon accounting is emerging as one of the most important aspects of corporate responsibility. While businesses increasingly recognise their environmental impact, only a relatively small proportion have taken meaningful steps to measure and disclose their emissions in a structured and transparent way.

Measuring what matters

A carbon footprint measures the total greenhouse gas emissions generated by an organisation's activities, expressed as carbon dioxide equivalent (CO₂e). It includes both direct emissions from an organisation's own operations and indirect emissions associated with the electricity, heating and cooling it consumes. With over 20 per cent of global greenhouse gas emissions linked to industrial activity, businesses have a vital role to play in the transition to a low-carbon economy.

Despite growing awareness, carbon reporting remains relatively uncommon among private companies, with only a small minority publicly disclosing their greenhouse gas emissions. For many organisations, measuring emissions is still perceived as complex, resource intensive or simply a compliance exercise rather than a strategic business priority.

Beyond compliance

That perception is rapidly changing. Under the recently implemented UAE's Federal Decree Law No. 11, organisations that generate greenhouse gas emissions are required to measure, report and work towards reducing them, making carbon accounting an increasingly important part of doing business in the country.

Beyond regulatory compliance, carbon reporting provides valuable business insights. Measuring emissions enables organisations to identify operational inefficiencies, reduce energy costs, strengthen risk management and make better long-term investment decisions. Much like stepping onto a weighing scale before starting a fitness journey, businesses need a clear baseline before they can set meaningful reduction targets. Without measurement, climate action remains little more than an aspiration.

Turning data into action

As the UAE builds a more climate-conscious economy, carbon accounting is becoming a defining characteristic of responsible business. Some organisations are already integrating carbon accounting into their broader sustainability strategies. Galadari Brothers measures and reports its Scope 1 and Scope 2 greenhouse gas emissions in accordance with the Greenhouse Gas Protocol, while continuously monitoring energy consumption and emissions across its operations. These insights help the company better understand its environmental impact, identify opportunities to improve efficiency and support informed decision making.

As more organisations strengthen their sustainability efforts, robust carbon measurement provides the foundation for setting meaningful reduction targets, tracking progress over time and driving continuous improvement. It is an important step in translating climate commitments into measurable action.