This paper examines the effectiveness of carbon accounting as a strategic tool for reducing corporate carbon footprints. Carbon accounting, which involves quantifying and managing greenhouse gas (GHG) emissions, has gained traction as corporations face increasing regulatory pressures and stakeholder demands for sustainable practices. Through a review of empirical studies and corporate case analyses, this paper assesses how carbon accounting influences environmental strategies, decision-making, and overall emissions reduction in various sectors. Findings indicate that carbon accounting is most effective when integrated into broader environmental management systems, supported by transparent reporting practices, and paired with corporate commitments to emissions reduction targets. Additionally, carbon accounting enhances corporate accountability by enabling better tracking of Scope 1, 2, and 3 emissions, fostering more precise identification of emissions hotspots. However, challenges remain, particularly in accurately capturing indirect emissions (Scope 3) and establishing standardized methodologies across industries. This study underscores the role of carbon accounting as an essential component in corporate sustainability efforts, while also identifying areas for further improvement, including the need for standardization, improved data quality, and integration with emerging digital tools like blockchain. The findings contribute to understanding carbon accounting’s impact on sustainability practices, supporting companies in achieving more measurable and transparent carbon reduction outcomes.