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1 – 10 of 49Zahra Borghei, Philomena Leung and James Guthrie
This paper aims to explore the nature of voluntary greenhouse gas (GHG) disclosure by non-GHG-registered companies among industry sectors over a period after the introduction of…
Abstract
Purpose
This paper aims to explore the nature of voluntary greenhouse gas (GHG) disclosure by non-GHG-registered companies among industry sectors over a period after the introduction of the National Greenhouse and Energy Reporting (NGER) Act 2007 and before the introduction of the Australian ETS.
Design/methodology/approach
A GHG disclosure index is used to evaluate the levels of GHG disclosure in 2009 and 2011 annual reports.
Findings
This paper highlights that non-GHG-registered companies seem to improve their disclosure by incorporating more “behavioural management” actions rather than “symbolic” actions. The changing rationale of GHG disclosure is towards more serious GHG reduction strategies. Consistent with voluntary disclosure and signalling theories, companies having good news to tell disclose their superior GHG information to promote their superior environmental performance.
Research limitations/implications
The findings should be useful for stakeholders who are interested in GHG disclosure strategies. Also, the content analysis of the annual reports provides some clarity in respect of the most common aspects of GHG disclosure by non-GHG-registered companies which is helpful in the evaluation of correspondence between carbon disclosure strategies and the objectives of carbon abatement.
Originality/value
Previous studies mostly investigate the differences in the type of GHG disclosure among companies subject to mandatory GHG regulations. However, this paper is the first study to examine the changing rationale in the nature of GHG disclosure of non-GHG-registered companies. While much of the prior research uses GHG-registered companies as the sample, no empirical study to date has considered non-GHG-registered companies that encompass 96 per cent of ASX listed companies.
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The purpose of this paper is to raise a selection of issues and questions that have begun to face academics and business professionals in the technically complex field of…
Abstract
Purpose
The purpose of this paper is to raise a selection of issues and questions that have begun to face academics and business professionals in the technically complex field of greenhouse gas accounting.
Design/methodology/approach
This paper drew on accounting, audit and assurance‐based field work whilst the author was employed with a “Big 4” accounting firm and undertaken with a range of Australian companies preparing to report greenhouse gas emissions to the Australian Government for the first time during June‐October 2009. The issues discussed in this paper include: determination of organisational boundaries and ownership of greenhouse emissions; determination of operational boundaries and how to account for the greenhouse emissions of contractors; and challenges of measuring and accounting for greenhouse gas emissions in the underground coal mining industry.
Findings
This paper highlights the need for further research into greenhouse gas accounting methodologies.
Research limitations/implications
The paper is primarily a news piece with a focus on three of a possible multitude of issues. The intention is not to provide a complete review of the growing academic literature in the greenhouse gas accounting field, nor to elaborate on the entire array of challenges presented by greenhouse gas accounting for a range of industries. Further, the paper does not intend to discuss climate change science or emissions trading in any detail.
Originality/value
Whilst the focus is on the Australian experience, the questions raised may be of interest to a more international audience as attempts are made to put a national framework using local measures on a global problem are commonplace.
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Michaela Rankin, Carolyn Windsor and Dina Wahyuni
Institutional governance theory is used to explain voluntary corporate greenhouse gas (GHG) reporting in the context of a market governance system in the absence of climate change…
Abstract
Purpose
Institutional governance theory is used to explain voluntary corporate greenhouse gas (GHG) reporting in the context of a market governance system in the absence of climate change public policy. This paper seeks to hypothesise that GHG reporting is related to internal organisation systems, external privately promulgated guidance and EU ETS trading.
Design/methodology/approach
A two‐stage approach is used. The initial model examines whether firms' GHG disclosures are associated with internal organisation systems factors: environmental management systems (EMS), corporate governance quality and environmental management committees as well as external private guidance provided by the Global Reporting Initiative (GRI) and the Carbon Disclosure Project (CDP) for 187 ASX 300 firms. EU ETS trading is also included. Determinants of the extent and credibility of GHG disclosure is examined in the second stage where an index constructed from the GHG reporting standard “ISO 14064‐1” items for a sub‐sample of 80 disclosing firms as the dependent variable.
Findings
Firms that voluntarily disclose GHGs have EMSs (uncertified and certified), higher corporate governance quality and publicly report to the CDP, tend to be large and in the energy and mining and industrial sectors. The credibility and extent of disclosures are related to the existence of a certified EMS, public reporting to the CDP, and use of the GRI. Firms that disclose more credible information are more likely to be large and in the energy and mining, industrial and services sectors.
Originality/value
The paper shows that some proactive but pragmatic Australian firms are disclosing their GHGs voluntarily for competitive advantage in the current market governance system in the absence of public policy.
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Tim Nelson, Elizabeth Wood, James Hunt and Cathlin Thurbon
Climate change policies such as carbon taxes and emissions trading schemes are being developed and implemented in ways which fundamentally transform the profitability of…
Abstract
Purpose
Climate change policies such as carbon taxes and emissions trading schemes are being developed and implemented in ways which fundamentally transform the profitability of industries and businesses. While mandatory reporting of greenhouse gas emissions by individual Australian companies is now largely standardised, the financial implications of emissions trading and other forms of climate change policy are poorly understood. This paper aims to discuss these issues.
Design/methodology/approach
A literature review was conducted of financial analyst research on this issue and determined that this poor understanding is the result of either insufficient information being available to adequately evaluate the risk to business or a lack of understanding about how carbon policies will impact on business.
Findings
This paper proposes a “checklist” for evaluation of the risks and opportunities created by pricing carbon to address this analytical chasm. Most importantly, like any significant tax reform, the paper concludes that it is impossible to create simple metrics that can be used across all industries and companies.
Originality/value
The paper outlines, for the first time, a checklist for analysis of the impacts of carbon pricing on Australian businesses.
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Mohammad Imtiaz Ferdous, Carol A. Adams and Gordon Boyce
The purpose of this paper is to examine the influences on the adoption of environmental management accounting (EMA) in corporatised water supply organisations, from an…
Abstract
Purpose
The purpose of this paper is to examine the influences on the adoption of environmental management accounting (EMA) in corporatised water supply organisations, from an institutional theory perspective, drawing on the concepts of reflexive isomorphism and institutional logics.
Design/methodology/approach
The primary research involves case analysis of three companies in the Australian water supply industry, drawing on interviews, internal documents and publicly available documents, including annual reports.
Findings
Two key drivers for the adoption and emergence of EMA are: the emergence of a government regulator in the form of the Essential Services Commission (ESC) and community expectations with regard to environmental performance and disclosure. The water organisations were found to be reflexively isomorphic, while seeking to align their commercial logic to “sustainability” and “ensuring community expectations” logics to the legitimate adoption of EMA.
Originality/value
The paper contributes to the literature by providing case study evidence of the intentions and motivations of management in adopting EMA, and the nature of that adoption process over an extended period. Further, it provides empirical evidence of the applicability of reflexive isomorphism in the context of EMA and institutional logics.
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Somaiya Yunus, Evangeline Elijido-Ten and Subhash Abhayawansa
– The purpose of this longitudinal study is to examine the determinants of carbon management strategy (CMS) adoption among Australia’s top 200 listed firms.
Abstract
Purpose
The purpose of this longitudinal study is to examine the determinants of carbon management strategy (CMS) adoption among Australia’s top 200 listed firms.
Design/methodology/approach
A legitimacy theory framework is adopted to investigate whether any significant relationship exists between a firm’s decision to adopt CMS and internal organisational factors, such as the presence of an environmental management system (EMS), as well as corporate governance factors like having an environmental committee, board size and board independence. Content analysis of Carbon Disclosure Project data and other publicly available information sourced from firm websites, annual reports and stand-alone sustainability reports is conducted, covering the period from 2008 to 2012.
Findings
Logistic regression analyses confirm that firms adopting CMS are more likely to have an EMS, an environmental committee, larger board size and greater board independence. The study also finds significant association between CMS adoption, firm size, leverage and environmental sensitivity of the firm’s industry.
Originality/value
The study shows that internal organisational factors and corporate governance attributes play a vital role in maintaining organisational legitimacy through CMS adoption. The findings of this study should be of interest to report providers (i.e. reporting firms), report users (such as investors and consumers) and policymakers.
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This chapter explains how the United Nations Framework Convention on Climate Change (UNFCCC), an important achievement of the Rio Earth Summit held in 1992, instigated interest…
Abstract
This chapter explains how the United Nations Framework Convention on Climate Change (UNFCCC), an important achievement of the Rio Earth Summit held in 1992, instigated interest in, and enthusiasm for, the fight against climate change in the international arena, promoting national actions, creating common frameworks and motivating corporations to take action against climate change. The Convention recognised climate change as a problem in 1994 when the UNFCCC took effect, which was remarkable considering that there was much less scientific evidence available at that time. Through extensive literature review, this chapter presents the origin and content of the Convention and explains how it creates new international instruments for mitigating climate change, its impact on corporate climate change-related accountability practices and where it stands now after 20 years in operation. The researcher argues that there is a need for strong cooperation among national and international actors such as governments, companies, national and international non-governmental organisations and international governmental organisations in order to create climate change-related accountability.
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Wendy Green and Qixin Li
This paper aims to examine whether an expectation gap exists between different stakeholders (i.e. emissions preparers, emissions assurers and shareholders) in relation to the…
Abstract
Purpose
This paper aims to examine whether an expectation gap exists between different stakeholders (i.e. emissions preparers, emissions assurers and shareholders) in relation to the assurance of greenhouse gas emissions. Further, the paper seeks to explore whether stakeholder expectations are influenced by the uncertainties inherent in the assurance engagement for different industry sectors (i.e. greenhouse gas emitter or greenhouse gas user entities).
Design/methodology/approach
An experimental survey was used to address the stated aims. Three stakeholder groups: shareholders, greenhouse gas emissions preparers and assurers, completed a survey based on the greenhouse gas emissions assurance for either an emitter or user entity.
Findings
The results provide support for the existence of an expectation gap in the emission assurance setting. Fundamental differences were identified between the stakeholder groups in relation to the responsibilities of the assurer and management; as well as the reliability and decision usefulness of the emissions statement. Moreover, the extent of the gap was found to differ between user entity engagements and emitter entity engagements.
Research limitations/implications
The paper highlights the need for the assurance services profession and assurance standard setters to consider mechanisms to enhance the effectiveness of communicating the assurance function in this setting in order to enhance the credibility and social value of emissions assurance.
Originality/value
The paper is the first to examine the expectation gap in the greenhouse gas emissions assurance context. It thereby also contributes to the literature on the expectation gap in the assurance of non‐financial information. Moreover, the research findings provide standard setters with unique insights into areas to consider as they work toward the development of an international assurance standard for greenhouse gas emissions statements.
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Kirsten Rae, John Sands and David Leslie Gadenne
– This study aims to investigate the association between a motivated and prepared workforce and environmental performance.
Abstract
Purpose
This study aims to investigate the association between a motivated and prepared workforce and environmental performance.
Design/methodology/approach
Self-administered surveys were used to collect data for the study from 300 organisations operating in Australia. Confirmatory factor analyses were used to test the robustness of the various measurement models, and structural equation modelling was used to test the two propositions for this study.
Findings
The results identify significant associations between affective commitment, employee performance process and training and enhanced environmental performance, which is mediated through the value-creating processes, work practices, process improvement and innovation process. Also, there is a set of sequential associations between work practices and process improvement and well as process improvement and innovation process.
Practical implications
The study has identified specific management practices that enhance environmental performance. The findings add to the body of knowledge because previous studies focused on general conceptual rather than actual management practices. The implications for practice are that organisations should enhance organisational affective commitment to their environmental strategy, tailor employee performance processes and provide regular, specific training to employees to improve processes that lead to better environmental performance.
Originality/value
Results, mentioned in findings above, provide some specificity to associations that had been illustrated and explained previously in an abstract or conceptual framework. A framework of identified associations provides a basis for future research and for practical application to assist with organisational environmental performance as part of a corporate sustainability strategy.
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The purpose of this paper is to draw out the accounting implications of the National Greenhouse and Energy Reporting (NGER) Act in Australia.
Abstract
Purpose
The purpose of this paper is to draw out the accounting implications of the National Greenhouse and Energy Reporting (NGER) Act in Australia.
Design/methodology/approach
An analytical approach is undertaken to ascertain the (accounting) practice and research implications of the NGER Act.
Findings
Accounting researchers, especially those with interests in social and environmental issues, have a critical role to play in highlighting the potential of the accounting practice in managing, and providing accountability over, carbon emissions, facilitated via the NGER Act. A number of opportunities in social and environmental accounting research are also identified in this paper.
Practical implications
The paper highlights that the NGERS legislation which requires reporting of carbon emissions by affected parties has a number of implications for the accounting practice.
Originality/value
The paper relates a practical issue, in this case the NGER Act, to accounting and suggests that the accounting process can play a critical role in organizational attempts to manage, communicate and price carbon emissions.
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