Carbon Accounting & GHG Inventory Services

By CA V. Viswanathan — FCA, ACS, CFE, IBBI Registered Valuer (IBBI/RV/03/2019/12333). Updated for FY 2025-26.

A greenhouse gas (GHG) inventory is the foundation of every credible climate disclosure. Whether you are reporting under BRSR Core, preparing for the EU Carbon Border Adjustment Mechanism (CBAM), targeting science-based climate goals (SBTi), or responding to a customer's Scope 3 questionnaire, you need a defensible GHG inventory built to ISO 14064-1:2018 or the GHG Protocol Corporate Standard. Virtual Auditor builds GHG inventories for Indian companies across manufacturing, IT/ITES, financial services, and infrastructure sectors.

Scope 1, 2, 3 — Categorisation and Calculation Basis

Scope 1 covers direct emissions from sources owned or controlled by the company: fuel combustion in boilers, vehicles, generators; process emissions; fugitive emissions from refrigerants. Calculated using activity data (litres of diesel, kg of refrigerant lost) multiplied by published emission factors (IPCC 2006 Guidelines, India GHG Programme). Scope 2 covers indirect emissions from purchased electricity, heat, steam. Calculated using either location-based factors (state-grid emission factor from CEA's annual CO2 baseline database) or market-based factors (supplier-specific factors where renewable PPAs apply). Scope 3 covers 15 categories of value-chain emissions — purchased goods, capital goods, fuel and energy, upstream transportation, waste, business travel, employee commuting, upstream leased assets, downstream transportation, processing of sold products, use of sold products, end-of-life treatment, downstream leased assets, franchises, investments. Most Indian companies materially under-report Scope 3 because of weak data architecture.

Why CBAM Now Matters for Indian Exporters

The EU's Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase from 1 January 2026. Indian exporters of cement, iron and steel, aluminium, fertilisers, hydrogen and electricity to the EU must now report embedded emissions per tonne and pay carbon levies based on the EU ETS price. Default values are no longer accepted from 2027. Companies must build product-level Life Cycle Assessment (LCA) calculations from primary data, verified by an accredited verifier. For an Indian steel exporter shipping 100,000 tonnes/year to the EU, CBAM liability could reach ₹150-300 crore annually. Building a verified GHG inventory is no longer a CSR exercise — it is a tariff-mitigation imperative.

ISO 14064-1 vs GHG Protocol — Which to Choose

GHG Protocol Corporate Standard is the most widely used framework globally and is what BRSR, CDP, SBTi, and IFRS S2 are based on. ISO 14064-1:2018 is the formal international standard, and certification by an accredited body provides third-party verification credibility. For most Indian companies, the practical answer is to apply both: GHG Protocol for the calculation methodology, ISO 14064-1 for the verification regime. Our standard inventory engagement produces an inventory that satisfies both standards simultaneously without rework.

Setting Science-Based Targets (SBTi)

The Science-Based Targets initiative (SBTi) provides a framework for setting emission-reduction targets aligned with limiting global warming to 1.5°C above pre-industrial levels. Targets must cover Scope 1+2 (mandatory) and Scope 3 (where Scope 3 exceeds 40% of total emissions). Validation by SBTi takes 6-9 months and requires a baseline GHG inventory, target-setting, and a transition plan. Over 250 Indian companies have committed; only ~70 have validated targets. SBTi-validated targets are increasingly required by global customers (Microsoft, Google, Apple) and major Indian buyers.

Common Calculation Errors We Find

(1) Using stale CEA emission factors — the factor for FY 2023-24 is 0.716 tCO2/MWh, materially different from earlier years; (2) Excluding refrigerant fugitive emissions (R-22, HFC-134a) which can be significant for IT companies with extensive cooling infrastructure; (3) Reporting diesel-genset emissions only at peak hours instead of full operating hours; (4) Mixing units (some sites in litres, others in kg, some in BTU) without conversion audit; (5) Double-counting Scope 2 when Scope 3 Category 3 (fuel and energy related activities) is reported. Our verification methodology systematically tests for these errors.

Engagement Models

(a) One-time baseline inventory — single financial year, ₹5-15 lakhs depending on number of sites and Scope 3 coverage; (b) Annual inventory and verification — recurring engagement with year-on-year comparability, ₹8-20 lakhs/year; (c) Product-level LCA for CBAM — per product line, ₹3-8 lakhs; (d) SBTi target-setting and validation support — ₹10-25 lakhs over 9-12 months. Pricing depends on number of facilities, geographic spread, data system maturity, and assurance level required.

How Virtual Auditor Delivers This

Virtual Auditor's CA-CS-IBBI Valuer team handles carbon accounting & ghg inventory services as an integrated engagement — no hand-offs between firms, single point of accountability, fixed-fee transparency. CA V. Viswanathan (FCA, ACS, CFE, IBBI RV) personally reviews every engagement deliverable. Offices in Chennai, Bangalore, and Mumbai serve clients across India. Free 30-minute scoping consultation available — no obligation.

Get Started — Free Consultation

Call +91 99622 60333 or email support@virtualauditor.in to schedule a free 30-minute consultation with CA V. Viswanathan. No obligation. We will give you a clear scope, timeline, and fixed-fee quote within 24 hours of the call.