Managing the shift from voluntary to mandatory climate disclosure: The role of carbon accounting

Amir Amel-Zadeh and Qingliang Tang

The British Accounting Review, 2025, vol. 57, issue 2

Abstract: 2Qingliang Tang acknowledges the research project on the topic “Managing the shift from voluntary to mandatory climate disclosure: The role of carbon accounting” received financial support "Priority Research Initiative" from School of Business, Western Sydney University 2024.The transition from voluntary to mandatory climate disclosure and reporting poses serious challenges for accounting professionals aiming to support firms in achieving net-zero goals. Key challenges include carbon data availability, recognition of carbon assets and liabilities, determining reporting boundaries, selecting appropriate greenhouse gas (GHG) accounting methodologies, and integrating climate-related risks and opportunities into traditional financial statements. The papers included in this Special Issue provide initial insights into some of these challenges. These studies emphasize the importance of carbon accounting, science-based GHG reduction targets, extreme or abnormal temperature and financial performance, and managing climate risk and opportunities. As firms adapt to these new reporting mandates, the studies in this Special Issue highlight the need for robust carbon management and accounting. Building on this, the note identifies critical knowledge gaps and sets forth a research agenda aiming at enhancing transparency and relevance in carbon accounting and reporting systems, thereby empowering informed decision-making.

Keywords: Mandatory climate disclosure; Carbon accounting; Science-based targets; Climate risk and opportunities; Carbon emissions; ISSB (international sustainability standards board) (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:bracre:v:57:y:2025:i:2:s0890838925000447

DOI: 10.1016/j.bar.2025.101594

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