Accounting is the language of sustainability: a measurement framework for carbon accounting

Peter Easton, George Ruch and Gary Taylor

Accounting and Business Research, 2025, vol. 55, issue 5, 542-560

Abstract: We explore the prospects of adapting financial accounting concepts to sustainability accounting. To illustrate, we introduce a carbon accounting measurement framework for net-zero pledges that parallels the financial reporting framework for US lease accounting (ASC Topic 842). Under this framework, entities prepare emission reduction schedules to achieve net-zero targets by a specific date. This proposed framework creates pledge asset and liability accounts (the present value of projected emissions) as beginning balances, which are amortised like lease assets and liabilities. A carbon flow statement tracks actual emissions and pledge variances, providing information regarding an entity’s progress toward its net-zero target. Significant variances may result in a revised emission reduction schedule or target date. The pledges may be monitored and audited.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00014788.2025.2516282 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:acctbr:v:55:y:2025:i:5:p:542-560

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RABR20

DOI: 10.1080/00014788.2025.2516282

Access Statistics for this article

Accounting and Business Research is currently edited by Vivien Beattie

More articles in Accounting and Business Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().