# Carbon audit vs energy audit vs ESG audit: which one does my company need?

Canonical: https://senseible.earth/answers/carbon-audit-vs-energy-audit-vs-esg-audit

An energy audit finds where you waste energy and money, and is mandatory for BEE designated consumers. A carbon audit measures and checks your greenhouse gas emissions, which buyers, lenders and CBAM ask for. An ESG audit reviews environmental, social and governance practices, usually because a buyer or listing rule demands it.

## The three side by side

- Energy audit: question answered, where can we cut energy use and cost. Output, a list of savings measures with payback. Basis, ISO 50002 and, for designated consumers, the BEE energy audit regulations of 2010, carried out by an accredited energy auditor.
- Carbon audit: question answered, how many tonnes of greenhouse gas we emit and whether that figure holds up. Output, a GHG inventory and, if verified, a verification statement. Basis, the GHG Protocol and ISO 14064-1, with verification under ISO 14064-3.
- ESG audit: question answered, do our practices on environment, labour, safety and governance meet a buyer's or regulator's code. Output, findings against that code. Basis, the buyer's supplier code or a disclosure framework such as BRSR; there is no single ESG audit standard.

## Which one you need, by trigger

- Notified as a BEE designated consumer: energy audit, on the mandated cycle.
- A buyer asks for emissions, a product footprint or CBAM data: carbon audit.
- A bank asks for impact figures for a green loan: carbon audit, often with energy data.
- High energy bills and no outside request: energy audit first; the savings pay for it.
- A brand's supplier code of conduct or a listed customer's BRSR value chain request: ESG audit or questionnaire.

## How they feed each other

The same electricity and fuel bills underpin all three. An energy audit tells you where kWh and litres go; the carbon audit turns the same kWh and litres into tonnes; the ESG audit's environment section usually asks for both. Do the data collection once and keep it in one place.

## What none of them is

A carbon audit is not a carbon credit. An energy audit report is not a verified emissions statement. An ESG audit is not a credit rating. Each answers a different question, so be clear which one the person asking actually needs before you hire anyone.

## What Senseible does here

Senseible builds a carbon inventory from bills and invoices, which is the data side of a carbon audit. It does not carry out energy audits or ESG audits, and its Verified status means rule checks passed, not an independent auditor's opinion.

- [Energy audit for MSMEs in India](https://senseible.earth/climate-intelligence/energy-audit-for-msme-india)
- [Carbon audit guide for Indian small business](https://senseible.earth/climate-intelligence/carbon-audit-small-business-india-complete-guide)
- [Carbon audit checklist, Singapore manufacturing](https://senseible.earth/climate-intelligence/carbon-audit-checklist-singapore-manufacturing)
- [Is my factory a BEE designated consumer](https://senseible.earth/answers/is-my-factory-bee-designated-consumer)

Sources: [BEE (Manner and Intervals for Conduct of Energy Audit) Regulations, 2010](https://beeindia.gov.in), [ISO 50002 Energy audits; ISO 14064-1:2018 and ISO 14064-3:2019](https://www.iso.org)

Last reviewed 2026-10-15.