The Role of Carbon Accountant in Corporate Carbon Management Systems: A Holistic Approach

Abstract

Carbon accounting consists of a combination of advanced cost allocation techniques such as activity-based management and life-cycle costing; that improve the identification and assignments of carbon-related expenses and overheads to such objects as products, services, customers and organizational processes. The study therefore sets out to find the role of carbon accountant in corporate management systems. Data used for this investigation were collected from primary and secondary sources. Primary data are first-hand information from respondents while Secondary data include textbook, Annual Reports and financial statements and internet facilities. The study employed descriptive survey and ex-post facto research design and the formulated hypotheses were tested by use of T-Test and OLS Regression. Based on the analysis and the hypothesis tested, it showed that there is a statistically significant relationship between carbon accounting and corporate performance of selected quoted Manufacturing Companies and based on this findings, it was recommended amongst others that, adaptation to conditions that include long-term changing dynamics of the natural environment should be encouraged and the focus of finance and accounting system should not only cover short-term outcomes and management of short-term costing, reporting and disclosure but also long-term climate risks.

Impact of Environmental Reporting on Financial Performance: Study of Global Fortune 500 Companies

“…In regards, empirical literature on environmental reporting on firm's financial performance has been mixed, with some studies reporting positive relationship (King & Lenox, 2001;Egbunike & Emudainohwo, 2017), neutral relationship (Elsayed & Paton, 2005) and negative relationship (Konar & Cohen, 1997;Khanna et al, 1998). Deegan & Rankin (1996); Elijido-Ten (2004) reveal that due to inadequate statutory enforcement of environmental reports, most developing country's firms decide on their own as to what to disclose in other to favor their corporate image.…”

Exploring the Potential Benefits of Carbon Risk Assessment and Reporting for the Development of Business Strategy in the Nigerian Oil and Gas Industry: A Case Study of Oando Plc

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Corporate Commitment of Environment: Evidence from Sustainability Reports of Mining Companies in Indonesia

“…Goodwill can encourage changes in reporting behavior that is transparent and competitive (Lynch et al, 2014). To achieve it, companies and stakeholders must understand that to achieve success in business, the company's objectives must include long-term sustainability from economic, social, and environmental factors (Egbunike & Emudainohwo, 2017). Creating greater transparency about company performance can also provide the information needed to reduce the use of natural resources, increase efficiency, and improve the company's operational performance (Ekasari et al, 2019).…”