The role of carbon accounting in carbon management system: Empirical evidence from the coastal areas of the world

Abstract

Our study mainly focuses on the major challenge faced by organizations while controlling the emission of greenhouse gases via the carbon management system (CMS), keeping in view the complexity of climate change, which is considered as one of the major challenges of present times. We narrow our focus to the factors related to the emission of carbon within this system. We assess the quality of the CMS using the guidelines provided by Tang and Luo (2014), Australian Accounting Review, 24(1), 84–98. The data for this research include the carbon emission–based data of the multinational companies, which disclose their carbon footprint. Based upon the empirical findings, we came to understand that the law of material balances prevails as carbon emission has a negative co-relationship between the carbon emissions and CMS, meanwhile the effects are not eminent. The adverse impact of such emissions has become obvious within 2 years. The quality of the CMS is determined by Target, Project, GHG (greenhouse gases) accounting, and disclosure. Our study has important policy implications for researchers, policymakers, and accounting companies because the role of the CMS is becoming integral.

Keywords: carbon accounting, Carbon management system, Empirical evidence, Coastal areas