Navigating Carbon Accounting in Manufacturing From Compliance to Decarbonisation

ABSTRACT Carbon accounting is increasingly mandated in manufacturing; however, its implementation remains fragmented between corporate reporting and product‐level assessments, limiting its effectiveness for decarbonisation. This study analyses the regulatory landscape in the United Kingdom and the European Union, identifying a structural misalignment among reporting requirements, methodological choices and operational decision‐making. To address this issue, a decision‐oriented carbon accounting framework is proposed to enable consistent, decision‐relevant application across manufacturing systems. The framework connects reporting drivers, system boundaries and data availability to methodological selection through a structured decision architecture. It introduces data specificity as a guiding principle to facilitate the progression from spend‐based screening to hybrid and activity‐based life‐cycle approaches across Scopes 1, 2 and 3. Through a unified structure, the framework integrates corporate‐ and product‐level accounting, coherent under overlapping regulatory regimes. Scenario‐based applications illustrate that aligning methodological complexity with data availability enhances comparability, hotspot identification and supply chain engagement. These improvements support targeted interventions in production systems and the development of credible carbon reduction strategies. The framework repositions carbon accounting from a compliance‐driven activity to a core capability for cleaner production, enabling actionable emissions reduction measures and supporting industrial decarbonisation pathways.