Framework for and the Role of Carbon Accounting in Corporate Carbon Management Systems: A Holistic Approach

Abstract

Climate change is a complex phenomenon, however, the accounting methodology used for climate change remains poorly understood. This paper proposes a broad concept of carbon accounting: carbon accounting is a system that uses accounting methods to record and analyse climate-change information as well as account for and report carbon-related assets, liabilities, expenses, and income for decision-making purposes. In addition, this paper adopts a holistic approach to describing inter-related functions of the components of carbon accounting, showing what role it can play in the construction of corporate carbon management systems. The paper discusses how innovative and creative approaches are used to develop carbon accounting frameworks, methodologies, and programs that are workable.