Corporate Carbon Management System Quality and Voluntary Carbon Assurance: The Moderating Effect of Institutional Setting

Synopsis The research problem This study examines the relationship between carbon management system quality and firm performance and investigates the mechanisms through which a carbon management system relates to firm performance. Motivation or theoretical reasoning Despite growing attention from academia and practice on carbon accounting in recent years, little is known about firms’ strategic implementation of carbon management systems and their impact on firms’ financial outcomes. Drawing on the resource-based view and institutional theory, this study argues that carbon management system implementation can create competitive advantages for firms through product differentiation and cost leadership. However, adopting quality management systems for carbon mitigation can be costly for firms. Additionally, not all firms would achieve such a differentiation advantage through a carbon management system. The test hypotheses H1: There is no relationship between the quality of a carbon management system and firm financial performance. H2: Carbon-intensive sectors have no moderating effect on the relationship between the quality of a carbon management system and firm financial performance. Target population Corporate managers and stakeholders including investors, international regulators, and standard settees. Adopted methodology Ordinary least square regressions. Analyses Corporate financial performance is measured by return on assets, calculated as earnings before extraordinary items divided by total assets at fiscal year-end. Our independent variable of interest is the quality measure of a carbon management system (QCMS). Following Tang and Luo ( 2014 ) and Luo and Tang ( 2016 ), QCMS is calculated as the average equal weighted sum of the standardized values from the 10 elements of a carbon management system. For additional tests, alternative performance measures (e.g., Tobin’s Q, return on equity, operating return on assets [ROA], and cash flow from operating activities to total assets) and disaggregated ROA components are employed as dependent variables. Findings We find that a firm’s carbon management system quality is positively associated with its financial performance. A better-quality carbon management system is especially associated with higher revenues, margins, and R&D expenditures. In addition, individual carbon management system components exhibit heterogeneous influences on financial performance. Specifically, the areas related to carbon disclosure and external carbon assurance have an incremental impact on financial performance. The positive association between a carbon management system and financial performance is stronger for firms operating in carbon-intensive sectors and firms with a higher level of carbon emissions. The carbon regulation affects the sensitivity of financial performance differently in intensive and non-intensive sectors in response to carbon management system quality.

The basis of the company’s decarbonization is the effective management of greenhouse gas emissions. The article visualizes in graphic material the forecast values of the mass of greenhouse gas emissions in the fuel and energy sector of Russia until 2030 and determines the trends in their changes. Based on the results of the analysis, it was revealed that in order to achieve a low-carbon development path, it is necessary to introduce additional measures to reduce greenhouse gas emissions. The purpose of the scientific research is to develop a corporate carbon management system, which can become a guideline for the development of corporate systems by Russian oil and gas companies. A reliable system for recording and monitoring greenhouse gas emissions serves as the basis for obtaining up-to-date, complete and reliable data. At the same time, for the quality control of the decarbonization process, a scheme of interaction within the company should be clearly built. The development and implementation of a carbon management system will allow the company to systematically reduce greenhouse gas emissions, which will create conditions for the transformation of climate risks associated with government regulation into the category of opportunities such as entering carbon markets, attracting investors, etc. The authors note that in most large Russian companies have already developed and introduced carbon management systems into production. After analyzing the current greenhouse gas accounting system of JSC “Zarubezhneft’’, the authors propose to create a carbon management system taking into account the specifics of the company, which consists in organizing activities on the territory of different countries (Cuba, Bosnia and Herzegovina, Egypt, Uzbekistan, Indonesia, Vietnam and Russia). It is proposed to adapt the methodological approaches for calculating greenhouse gas emissions to the requirements of the legislation in force in the territory where the production facilities of the JSC “Zarubezhneft’’ are located, and also to apply national coefficients in the calculation to ensure more accurate emission estimates. The result of the study is the development of the concept of the carbon management system of JSC “Zarubezhneft’’.

As the demand for sustainable and efficient energy grows, EnExpert leads with its innovative Energy Management System (EMS) and Carbon Management System (CMS). These solutions optimize energy use and sustainability, making them essential for modern businesses. Energy Management Systems (EMS). EnExpert’s EMS helps companies monitor, control, and optimize energy consumption. By providing real-time data and advanced analytics, EMS reduces energy waste, lowers costs, and improves sustainability. It also integrates renewable energy sources like solar and wind, helping companies transition to greener operations efficiently. Carbon Management Systems (CMS). EnExpert’s CMS helps businesses monitor and reduce their carbon footprint. By tracking greenhouse gas emissions in real time, CMS enables companies to set targets, measure progress, and comply with environmental regulations. It provides insights to minimize emissions and supports sustainable practices. This tool is crucial for businesses aiming to meet carbon reduction goals while maintaining operational efficiency. By adopting EnExpert’s EMS and CMS, companies can enhance efficiency and contribute to a more sustainable, low-carbon future. Together, we can lead the way toward a greener, more innovative future, where technology and sustainability are seamlessly integrated for the benefit of future generations.

Discussion of “Determinants of the Quality of Corporate Carbon Management Systems: An International Study”

This article proposes a carbon management system (CMS). The system comprises 10 essential elements from four broad perspectives: carbon governance, carbon operation, emission tracking and reporting, and engagement and disclosure. The proposed new approach focuses on cross‐functional integration, enforcement of proactive strategies and group rather than individual accountability. We then use Carbon Disclosure Project reports to examine empirically the implementation of systems by large Australian firms. Overall, we find that firms with higher quality CMS have achieved better carbon mitigation. Further, adequate assessment of carbon risk and opportunity, the presence of reduction targets, the strength of carbon programs and enhanced external disclosures appear to be the most effective elements in our sample firms. We present evidence that, by combining governance, internal process, carbon dioxide‐footprint tracking and communication activities, a CMS helps managers improve decision making. We discuss the implications of the findings for accounting practice and education.

Carbon emission trading scheme and carbon performance: The role of carbon management system

The current practice in the logistics industry is to calculate the carbon footprint of transportation activities based on the distance covered, using long-term fuel consumption averages per kilometer. However, fuel consumption may actually vary over time, because of differences in road characteristics, traffic situations, driving behavior, etc. Therefore, distance-based emission calculations are not accurate. Our approach is fuel-based and it calculates transport greenhouse gas emissions by obtaining the actual fuel consumption during trips via board computers installed in vehicles. Thus, we propose an architecture for a fuel-based Logistics Carbon Management System (LCMS) that monitors and collects real-time data about the fuel consumption during trips, and, consequently, calculates detailed and accurate carbon footprints of transportation services. Furthermore, this system is integrated with the logistics service provider's business processes and with typical software applications (e.g., Transport Management Systems and Board Computers). We validate and implement the proposed architecture by means of a prototype.

Achieving a goal of net-zero carbon emissions by 2050 is expected to require the removal of at least 5-10 Gt of CO2 per year from the atmosphere, along with reductions in emissions. This will require a focused and sustained effort to overcome challenges in carbon management. We envision a multicomponent carbon management system that will allow optimization of carbon throughput while minimizing financial and social costs and identifying gaps in technological innovation. We convened a Chatham House Rule workshop in Washington, DC in April 2025 with the goal of defining research needs for a systems-level approach to optimizing carbon management. We identified six core research areas for developing an integrated carbon management ecosystem while addressing barriers to adoption: (1) capture and removal technologies, (2) measurement and accounting, (3) sequestration and utilization, (4) technology integration and systems analysis, (5) economic and policy dimensions, and (6) community impacts. The fundamental gaps that need to be bridged include constraining material behavior and process energy intensity; better managing monitoring and reporting data; cost of potential technological pathways; and clarifying the design of legal, regulatory and policy institutions and incentives that encourage socially optimal and equitable development and deployment of optimized carbon management systems. Despite current policy uncertainties surrounding carbon management, a sustained effort in these areas will be required to make carbon management work.

The greenhouse effect of atmospheric pollution is globally concerning. China is transitioning to market-driven emission reduction from policy-driven efforts. In 2021, key power industry emitters were included in the national carbon trading market. However, many companies lack willingness and understanding of carbon assets, hindering progress. Research on power companies in Beijing, a political and carbon market pilot region, is valuable. This study obtained data on the participation of Beijing’s power generation companies in the carbon market and the construction of their carbon management systems during the first compliance period through the distribution of surveys. The findings revealed that the implementation and preparation of carbon inventory, Chinese Certified Emission Reduction (CCER) development, the allocation of carbon management personnel, and training are key factors influencing the actual effectiveness of carbon management within companies. Based on the survey results and the impact pathways, this study outlines the preparatory work, system content, and construction steps for power companies to build a carbon management system. It summarizes five key areas of work for power companies in managing carbon assets: carbon inventory, carbon management personnel and mechanisms, carbon trading, carbon emission reduction, and carbon finance. This provides guidance to help power companies fulfill their obligations smoothly, add value to their carbon assets, and achieve low-carbon development goals. Additionally, it offers a reference for other industry enterprises that are about to enter carbon trading.

Several studies found that critical asset failure results in delays and downtimes in operation for most industries. One of the studies revealed that 272 of the 773 occurrences involved a critical asset breakdown. Thus, this study aimed to discuss the relevant factors of implementing the Assurance Management System for the industry's selected critical asset. Literature reviews play a significant role in this research through a content analysis review process from different review articles, google scholar, journals, and other social sciences. The result revealed that increasing the organization's knowledge of the processes and asset criticality in the assurance management system offers a high degree of openness to the activities carried out to ensure continued asset reliability and integrity. Relatively, it shows a clear long-term progress pattern of improved equipment reliability, leading to a significant increase in consumer trust due to introducing a system of reliability assurance management. Indeed, the study recommended that implementing an assurance management system is an integral part of the critical asset as it offers trust that the asset will perform as anticipated. Finally, it is an aid in understanding the asset and its relationship between expected and actual performance and efficiency in using a structured approach of the Assurance Management System for Critical Asset, the AMSCAF Framework. Therefore, industry stakeholders should consider the recommendations and best practices to ensure critical asset management systems need to generate value that maintains a competitive advantage in today's highly complicated and challenging market competition through the Assurance Management System.

This paper examines the effect of awareness regarding climate change risks and opportunities on the proactive carbon management systems of U.S. S&P 500 companies. We develop our hypotheses based on institutional theory, stakeholder theory, and prospect theory. Our findings indicate a significant positive association between our self-constructed measurement of company risk and opportunity awareness and carbon management practices. We observe that financially constrained firms exhibit a lesser response to both climate change risk and opportunity awareness. Additionally, we note that firms with low profitability are more responsive to climate change risks, whereas we found no evidence linking climate change opportunity awareness to carbon management systems, consistent with prospect theory. Finally, we investigate the impact of carbon management systems on carbon reduction performance to examine the effectiveness of such awareness. In summary, this study provides the first evidence of how awareness of climate risk and opportunity influences corporate carbon management practices in a U.S. setting. Our findings imply that awareness serves as the initial step in prompting positive actions to manage risks and capitalize on opportunities. These results offer novel insights and information relevant to the recent policy initiative aimed at transitioning climate risk disclosure from voluntary to mandatory.

This chapter aims to define quality assurance and its associated terms. It reviews existing quality assurance management systems and frameworks. The chapter examines the origins of, and the responses to, quality assurance demands. It also aims to develop a constructively critical view of quality management, whether partial quality management or total quality management. The aims of assurance management system a quality assurance management system are to prevent non-conformity or customer problems and to achieve customer satisfaction; the objectives are to minimize risk and cost and maximize benefits that can be obtained from achieving the required quality standards. Oystein Ovretveit defines three dimensions of quality which might take the following form: client quality, professional quality, and management quality. This account combines the commercially dominant view of customer satisfaction with acknowledgement of the rights, duties and judgements of professionals and with an acceptance of budget limits and control by government departments, to which public employees must, to a degree, be subject.

Hazard Analysis Critical Control Point (HACCP) is a quality assurance, food safety, and risk management system with a preventive approach to ensure food safety for consumers. Food served during in–flight travel is provided by in–flight catering. Airline food has very high standards regarding food quality and safety. The purpose of this study is to analyze the application of HACCP to aviation food products by identifying potential hazards and applying Critical Control Points (CCP). The method used in this study is Critical Control Point (CCP) observations, carried out at the receiving (CCP 1), chiller and freezer (Storage) (CCP 2), cooking (CCP 3), blast chilling (CCP 4), and serving (CCP 5) stages. The company has created a HACCP plan as a guide for all processes that occur within the company. All are organized based on HACCP principles for the entire process. Keywords: CCP, Food Safety, HACCP, Inflight Catering, ISO 22000.

Complex global food chains and rising demand for high-quality halal product requires better and more efficient management. Traditionally, the Halal Assurance System (HAS) and Quality Management System (QMS) have been implemented separately, resulting in overlapping processes and redundant documentation. In the era of digital transformation and Industry 4.0, integrating these systems digitally improves traceability, compliance, and overall organization’s performance. This review aimed to examine current trends, technologies, and research gaps related to the digitalization of integrated Halal and Quality Management Systems (HAS–QMS). A comprehensive literature analysis highlights the role of emerging technologies—such as blockchain, the Internet of Things (IoT), artificial intelligence (AI), cloud computing, and big data analytics—in supporting halal integrity and quality assurance across the food value chain. The findings indicated that digital integration facilitates real-time monitoring, automated documentation, and improved audit readiness. However, challenges persist in areas such as data interoperability, standard harmonization, regulatory acceptance, and the digital readiness of small and medium enterprises. The paper proposed a conceptual framework for the digitalized integration of HAS and QMS, aligning technological capabilities with halal and quality compliance requirements. To align with industry 5.0, future research should standardize models, test performance, and integrate sustainability and ethical standards.

It is estimated that not less than USD 28 billion are spent each year in the USA alone on irreproducible pre-clinical research, which is not only a fundamental loss of investment and resources but also a strong inhibitor of efficiency for upstream processes regarding the translation towards clinical applications and therapies. The issues and cost of irreproducibility has mainly been published on pre-clinical research. In contrast to pre-clinical research, test material is often being transferred into humans in clinical research. To protect treated human subjects and guarantee a defined quality standard in the field of clinical research, the manufacturing and processing infrastructures have to strictly follow and adhere to certain (inter-)national quality standards. It is assumed and suggested by the authors that by an implementation of certain quality standards within the area of pre-clinical research, billions of USD might be saved and the translation phase of promising pre-clinical results towards clinical applications may substantially be improved. In this review, we discuss how an implementation of a quality assurance (QA) management system might positively improve sample quality and sustainability within pre-clinically focused biobank infrastructures. Biobanks are frequently positioned at the very beginning of the biomedical research value chain, and, since almost every research material has been stored in a biobank during the investigated life cycle, biobanking seems to be of substantial importance from this perspective. The role model of a QA-regulated biobank structure can be found in biobanks within the context of clinical research organizations such as in regenerative medicine clusters.