Moderating effect of carbon accounting systems on strategy and carbon performance: a CDP analysis
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Date
2022-12
Open Access Location
Authors
Journal Title
Journal ISSN
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Publisher
Springer-Verlag GmbH
Rights
(c) 2022 The Author/s
CC BY 4.0
CC BY 4.0
Abstract
Carbon emissions bring significant risks and opportunities, and organisations have responded by adopting different strategies and environmental control systems, such as carbon accounting systems (CASs). However, it remains unclear whether a CAS can help reduce emissions, and what role is played by a CAS in the relationship between carbon strategy and carbon performance. Therefore, this paper analyses the strategy-accounting-performance nexus by drawing on 1672 firm-year observations of firms participating in the CDP in 2014 and 2015. The results suggest that the quality of a CAS is influenced by strategic choices; with a proactive carbon strategy being associated with a higher quality CAS. Further, proactive strategies and CASs are found to be associated with carbon savings and emissions reduction. The results indicate a moderating role of CASs on the strategy-performance relationship, with carbon strategy enabling higher carbon savings and lower emissions intensity in the presence of a high-quality CAS. Our findings suggest that formulation of carbon strategies and establishment of carbon measures can drive effective carbon mitigation.
Description
Keywords
Climate change strategy · Carbon accounting · Carbon mitigation · Carbon performance · CDP
Citation
Bui B, Houqe MN, Zahir-ul-Hassan MK. (2022). Moderating effect of carbon accounting systems on strategy and carbon performance: a CDP analysis. Journal of Management Control. 33. 4. (pp. 483-524).