Corporate carbon accounting: a literature review of carbon accounting research from the Kyoto Protocol to the Paris Agreement

Abstract

This paper describes the development of and gaps in knowledge in research on carbon accounting based on a systematic review of 117 papers published in influential accounting journals between 2005 and 2018. The review shows the literature has developed into four major streams of carbon accounting: carbon disclosure, management, performance and assurance, and that carbon accounting is emerging as a distinct discipline. Finally, our paper highlights future research opportunities to improve carbon accounting, so it can play an even more important role to help business achieve the climate goals of the Paris Agreement.

Government Reform, Regulatory Change and Carbon Disclosure: Evidence from Australia

“…Climate change and its associated carbon emissions have piqued the interest of world leaders, researchers, organisations and the wider community. Carbon emissions have now become a contentious issue in a variety of disciplines over the last few years, for example, environmental studies [34], public health [35] and accounting [16,36,37]. Additionally, it is argued that government reforms regulations, and policies may compel organisations to disclose additional but voluntary environmental information [38].…”

“…Since the inception of the Kyoto Protocol and Paris Agreement, the carbon emissions literature has focused on four major streams: carbon emissions disclosure, management, performance and assurance, and established carbon accounting as a new or distinct discipline [37]. Prior research related to carbon disclosure heavily focused on capital market and corporate governance characteristics [17,37,45,46]. Existing studies found that the capital market does value carbon disclosure [46] and corporate boards' characteristics can affect voluntary carbon disclosure [17,45,47].…”

“…Globally, the United Nations has been troubled about the possible outcomes of carbon emissions since the 1970s, and in 1988 formed the Intergovernmental Panel on Climate Change (IPCC) to address the issue [57]. Thus, the critical nature of addressing carbon emissions has attracted particular attention from foremost national and international organisations, non-governmental organisations (NGOs), community interest groups, activists, business and government policymakers, and academics [11,37,[58][59][60].…”

“…Without a doubt, the Kyoto Protocol and Paris Agreement are the most significant global consensus addressing the economic problem of carbon emissions by establishing legally binding emission targets for industrialised countries [62]. Additionally, the Kyoto Protocol and the Paris Agreement have prompted numerous governments to build their own laws and regulations [37,62]. To date, almost all countries have made international commitments to limit their emissions under the United Nations Framework Convention on Climate Change (UNFCCC), in conjunction with the Kyoto Protocol and the Paris Agreement [37,63].…”

Energy agenda of architectural formation: To progress sustainable built environment through the approach of energy-driven architectural formation

“…4,5 In this era of energy shortages and environmental problems, the 'carbon neutrality' becomes a common objective of many countries (currently there are over 190 signatory countries agreed to a planned reduction of carbon emission in the Paris Agreement). 6 The threat of climate change also calls for a global revolution in buildings which closely connect architectural formation, environment performance, energy consumption and human behaviours (Figure 1). 7 As the issue of coexistence between architecture and environment gradually gained further recognition, architects have continued to redefine the connotation of architecture, the disciplinary value of environmental regulations as well as the resulting issues of architectural formation.…”