Sustainable supply chain and carbon management have seen a growing interest in the last decade due to the increasing concerns about global warming and climate change. Policy-makers, researchers and executives have taken various roles in efforts to better measure and control greenhouse gas emissions. This chapter aims to discuss the current state of the art, and key motivations for businesses to decrease emissions, and different policies and regulations that have been designed to incentivize carbon reduction and enhance the environmental awareness of all stakeholders. The chapter also examines the methodologies for measuring and managing carbon emissions of an organization and its supply chain. Further, it discusses carbon management issues related to reverse logistics, life cycle assessment and double-counting of emissions.