Analysis of Contemporary Issues in Accounting: GHG Performance

This report delves into the contemporary issue of Greenhouse Gas (GHG) performance in accounting, examining the impact of carbon emissions on corporate performance and its relationship with stakeholders, investors, and the general public. The research is motivated by both practical an...Read More

Contemporary Issues in Accounting 1
Contemporary Issues in Accounting

Contemporary Issues in Accounting 2
Table of Contents
Introduction:....................................................................................................................................3
Practical Motivation:.......................................................................................................................3
Theoretical Motivation:...................................................................................................................4
Literature Review:...........................................................................................................................5
Hypotheses:......................................................................................................................................5
Appendix:........................................................................................................................................6

Contemporary Issues in Accounting 3
Introduction:
This research is based on the empirical analysis of organization on the basis if CPD data that
provide the reluctant information to the corporation about the carbon gas emissions. This
research is also aimed to attempt for the in-depth analysis over the impact of high carbon gas
emissions that is affecting the corporation’s performance in context to the link with the external
stakeholder, investors and general public. With this, greenhouse gas performance is important for
the business to address the issue of higher emission of carbon gas that derives the negative
impact on the organization’s performance and impact its market immensely. It is also depicted
from the information of CPD data, major corporations are influencing the environmental factor
and derailing the climate change through higher rate of carbon emission. The main issue for this
research is raised as the role of stakeholder’s in relation to the green house gas performance over
the years. This research study is important to consider the important aspects of environment
because the corporations are affecting the climate by indulging into the manufacturing business
and excerts the higher carbon gas that directly push the impact over the green house gas
performance. It is also important from the reader’s aspect to gain the information that is
concerned to the environmental protection through using the business management and strategies
to reduce the carbon gas emission.

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Practical Motivation:
Green house gas performance has become an important issue for the researcher to proceed with
the theoretical and practical aspect to consider the impact of carbon gas over the environmental
changes that is important to protect for the betterment of corporations and stakeholder as well.
Carbon gas emission has become a burning problem for the major stakeholders to consider the
impact of carbon on business and environmental that really impacts the performance of business
in relation to the financial, operations and marketing management of business. This above raised
issue is important to practice for the different groups of people that are from internal and external
environment. The issues is crucial for the regulators and controller to control over the carbon
emission that is existed in the operational activities of business and affect the environmental
functioning through tapping the higher temperature and make unbalance between the rain (Noda,
2014). The regulator are authorized to enforce the higher carbon existed because it influence the
stakeholder to being with the organization for long time with a repetitive concern. Along with
this, this issue is also important for the management and accountant to influence the investors
and stakeholder through the performance of business in term of financial aspects. On the other
hand, general public is an important aspect for that green house gas performance is very
important to protect the environment in relation to control over the unbalance of environmental
activities and higher carbon emission may also raise variant types of disease that may lead to the
higher death rate of employees of organizations and general public as well.

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Theoretical Motivation:
The theoretical motivation for the projected research is also important to address the raised issue
through managing the higher emission of carbon that really impacts the environment to disturb
the natural activities. This research would be supportive to enhance the empirical analysis in
concern to the green house gas that is important to research to identify the impact of carbon gas
over the green house through aligning with the corporation’s performance. It would also be
linked to the arguing the perceived theories and develop the new theoretical practices that would
assist the management to have the significant strategies to control and reduce the emissions of
carbon gas for benefit of general public and protect the interest of general public and
stakeholders as well. This study would enable the researcher to make the specific judgment over
the effective management of carbon related issues and satisfy the stakeholder’s intentions that
create attraction towards the corporation. It also pertained the lacking in previous theories that
are adopted to control the carbon emissions and protect the interest of stakeholder.

Contemporary Issues in Accounting 6
Literature Review:
Green house gas performance has become essential for the each and every corporation to meet
the satisfaction level of stakeholders as well and the current rate of carbon emission has
increased the debate over this issues. Rietbergen, et. Al, 2016, detained that carbon gas emission
from the organizational performance has been increasing gradually from last two decades but the
last five years percentage of GHG has reduced at higher level which indicates the negative
relationship between the variables of carbon gas emissions and the strategies that are adopted by
the organization to control over this situation. Carbon Trust argued that the organizational
performance has been impacted by the higher carbon extraction because it affects the climate and
leads to the changes in the environmental activities. On the other hand, stakeholders are an
important factor for the business to develop the business at next level and if they are not happy
with the organizational process, it is not good from entire aspect of corporations. CPD is an
organization that is aimed to confer the information to the stakeholders and investors about the
performance of corporation in relation to the finance and environment impact of its activities.
It is evident the only organizations are responsible for the high rate of carbon emissions.
Sprengel, and Busch, 2011) argued that the agency theory establish the standards between the
organizational goals and achieved objectives in relation to social disclosure. It is stated the two
factors are considered important as principal interest of agent and another is the activities of
agent through which the two variables fluctuates. It is endowed that the organizations have no
control over its policies with reference to reduce the emission of GHG has also increased by 85%
in 2010 to 96% in 2012. Authors also shaped that the energy audit and energy efficiency are the
two factors that are liable to reduce the level of carbon gas but these are not effectively managed
by the corporations.

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Figure: Corporate Carbon Strategy Framework
(Source: Damert, et. al, 2017)
Chakrabarty and Wang, 2013 found out that the corporations are adopting the strategies in order
to control the emission of carbon as carbon governance, carbon reduction and carbon
competitiveness in concurrent environment. Along with this, legitimacy practice is also adopted
by the organization that led to the efficient management of energy and gain competitive
advantages from the stakeholder aspect as stakeholder derives the turbulent success of business
in this competitive era with corporate strategies that are supportive for the general public
benefits. The strategies are emitted at the country level including the stakeholder’s perspective
and another is corporate governance through which organizations assess the legitimacy to
mitigate the extraction of carbon gas. From the evidence of various research studies it is
extracted that the energy management model is and crucial theory and practice can subtle and
supports the organizations to control over the decreasing in green house gas (Backman et al.,
2017). So far, government has also initiated for the better solution for environment efficiency but

Contemporary Issues in Accounting 8
the results are not up to the level. Previous research evidenced that the whole group of
stakeholders is directly or indirectly linked to the carbon disclosure, in which stakeholder are
customers, employees, media and general public. Furthermore, the research study concluded the
relationship between the theoretical and practical motivation through statistical analysis as
regression and CPD data to integrating the consequences and results at aimed there is no
superiors decision was endeavor to found the modification in existing model that can enhance the
reliability for organization to measure the controlling activities of carbon emissions and lead to
the green environment to protect the green house gas performance (Xiongling, 2016). From the
prolonged research study, it is stated that the organization can control over the carbon emission
through integration of agency theory and legitimacy to achieve the carbon efficient targets that
are measures by the CPD in relation to mitigate the GHG performance. It is perceived that the
organization can tap the competitive advantages if there is the control over the emission over
carbon and influence the stakeholders through responding the social and legitimacy issues. At the
same time, environmental protective organization should be strictly treated if it not achieving the
climate change target and organization should proceeded with the volunteer reduction in the
carbon emissions which can be tapped through the competitive advantages deriving strategies.
Over the analysis, stakeholder theory also persist with the effective control strategies of carbon
as the stakeholder are enforcing the corporation to control their rate of carbon emission in
relation to maintain the long term relationships for sustainable development . It is also endowed
that the organizations have potential to reduce the carbon emission and achieve the green house
gas performance as targeted (Kimura and Noda, 2014). This theory might be more successful in
relation to agency theory and legitimacy theory as the low power firms are pressurized by the

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stakeholder to behave according to that. With this, large corporation can also be affected by the
challenges of stakeholders as they are committed to sustainability.

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Hypotheses:
The organizational performance for GHG and carbon emission control would be greater than the
targets set

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References
Damert, M., Paul, A. and Baumgarterner, R. (2017) Exploring the determinants and long term
performance of carbon strategies. Journal of Cleaner production, 160 (2017), pp. 123-138.
International Journal, 22(3), pp.223-236.
Kimura, O. and Noda, F. (2014) Does regulation of energy management systems work? A case
study of the Energy Conservation Law in Japan. Available at:
file:///C:/Users/I4%20Consulting/Downloads/5-067-14_Kimura_PR.pdf (Accessed: September
03, 2017).
Rietbergen, M., Opstelten, I. and Blok, K. (2016) Improving energy and carbon management in
construction and civil engineering companies—evaluating the impacts of the CO2 Performance
Ladder. Energy Efficiency. 10, pp. 55-79.
Sprengel, D.C., Busch, T. (2011) Stakeholder engagement and environmental strategy - the case
of climate change. Business Strategy and Environment. 20(6), pp. 351-364.
Wilson, M., Alves, F., Jabbour, A., Kannan, D., and Jabbour, C. (2017) Contingency theory,
climate change, and low-carbon operations management, Supply Chain Management: An
Xiongling, TU, (2016) The Relationship between Carbon Dioxide Emission Intensity and
Economic Growth in China: Cointegration, Linear and Nonlinear Granger Causality. Journal of
Resources and Ecology. 7(2), 122-129.

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Appendix:
Table – Annotated Bibliography for Selected Articles
Author Date Title Journal Type
of
Paper
(Theo
retica
l or
Empi
rical)
If
empiric
al,
researc
h
method
and
sample
If
empirical,
dependent
and
independen
t variables
100 word
summary
of
contributio
n to the
research
question
1. Rietbergen, M.,
Opstelten, I. and
Blok, K.
2016 Impro
ving
energ
y and
carbo
n
mana
geme
nt in
Energy
Efficie
ncy
Empi
rical
Sample
25
Compa
nies
and
Mixed
method of
quantitative
and
qualitative
approach
This article
is intended
to research
about the
impact of
the CO2
gas in
relation to
the non-

Contemporary Issues in Accounting 14
constr
uction
and
civil
engin
eering
comp
anies
—
evalua
ting
the
impac
ts of
the
CO2
Perfor
mance
Ladde
r
industrial
corporation
s. From the
analysis of
research
there are
various
important
strategies
have been
captured
that enables
the
organizatio
n to
achieve the
desired
outcomes
and
supports to
the positive
integration
of

Contemporary Issues in Accounting 15
stakeholder
s.
2. Damert, M.,
Paul, A.,
baumgarterner,
R.
2017 Explo
ring
the
deter
minan
ts and
long-
term
perfor
mance
outco
mes
of
corpor
ate
carbo
n
strate
gies
Journal
of
Cleane
r
Produc
tion
Empi
rical
analy
sis
45
Enterpr
ises as
sample
from
steel
Mixed
analysis
with
regression
analysis
This article
is proposed
to
determine
the impacts
of
strategies
that are
adopted by
the
organizatio
ns for the
long term
sustainabili
ty. It is
evident that
there is no
relationship
between
the carbon
mitigation

Contemporary Issues in Accounting 16
strategies
and long
term
performanc
e of
business.
3. Wilson, M.,
Alves, F.,
Jabbour, A.,
Kannan, D., and
Jabbour, C.
2017 Conti
ngenc
y
theory
,
climat
e
chang
e, and
low-
carbo
n
operat
ions
mana
geme
nt
Emeral
dinsigh
t
journal
Theor
itical
Journ
al
It is not
empiric
al so
that the
sample
has not
been
selected
to
proceed
This article
is
researched
with
reference to
the supply
chain
manageme
nt related
issues for
the
organizatio
ns and the
organizatio
n structure
is
supported

Contemporary Issues in Accounting 17
to develop
the
measures
of research.
4. Xiongling, TU 2016 The
Relati
onshi
p
betwe
en
Carbo
n
Dioxi
de
Emiss
ion
Intens
ity
and
Econo
mic
Growt
h in
Journal
and
Resour
ce and
Ecolog
y
Empi
rical
analy
sis
Asian
countei
s
Logritham
evaluation
The main
purpose of
this article
is to
explore the
relationship
between
the CO2
and
economic
developme
nt in China
as the
countries
are facing
the global
issues as
CO2. It
also depicts

Contemporary Issues in Accounting 18
China
:
Coint
egrati
on,
Linear
and
Nonli
near
Grang
er
Causa
lity
the linear
and non-
linear
relationship
to identify
the
environme
ntal
friendly
policies
and
decision to
control the
carbon
emissions
in business
processing.
5. Sprengel, D.C.,
and Busch, T.
2011 Stake
holder
engag
ement
and
enviro
Busine
ss
Strateg
y and
the
Enviro
Empi
rical
analy
sis
141
compan
ies
from
the
globe
Empirical
analysis
This article
is intended
to proceed
the active
engagemen
t and the

Contemporary Issues in Accounting 19
nment
al
strate
gy -
the
case
of
climat
e
chang
e
nment environme
ntal
strategies
with
reference to
the climate
change.