As climate change is becoming a critical challenge, board of directors is expected to provide responsible leadership and build a robust carbon management system (CMS) for a transition towards carbon neutrality. This chapter first introduces the principles for sound CMS: Adequate climate accountability; complete command of the climate subject; appropriate structure of board; assessment of climate risk and opportunity; strategic integration; motivation for decarbonisation; and disclosure and engagement. This chapter then explains objectives, structure as well as critical ingredients and functions of a CMS that may be used in different industrial sectors. A CMS enables executives to combine governance, internal process, carbon footprint tracking, and promote a virtuous circle of implementation of carbon mitigation strategy, targets, actions, and performance. Finally, this chapter elaborates how carbon accounting plays an important role to strengthen CMS.