Exploring the Influence of Carbon Emissions on Sustainable Development

Abstract

This study explores the theoretical foundations of accounting practices related to carbon emissions, particularly focusing on their influence on sustainability. The research employs a questionnaire, distributed to approximately 150 managers, to gather insights into how carbon emissions are accounted for and their impact on sustainable development. The findings reveal that accounting for carbon emissions significantly affects the three pillars of sustainability—economic, social, and environmental—though with varying degrees of influence across these dimensions. The results indicate that carbon emissions accounting has a statistically significant impact on the economic and environmental aspects of sustainable development. In terms of the economic pillar, companies that account for their carbon emissions are more likely to engage in practices that mitigate environmental harm while maintaining or improving their financial performance. This is due to the growing recognition that addressing environmental sustainability can lead to cost savings (e.g., through energy efficiency) and enhanced corporate reputation, which in turn drives economic value. Regarding the environmental pillar, the study highlights that accounting for carbon emissions is crucial for reducing a company's environmental footprint. Firms that systematically track and report their emissions are better positioned to implement strategies for emissions reduction, thereby contributing to global climate goals. However, the social aspect of sustainability appears to be less affected by carbon emissions accounting. The study finds no significant correlation between accounting for carbon emissions and improvements in social sustainability, such as labor rights or community engagement. Moreover, the study underscores the role of large corporations in achieving environmental sustainability. By accounting for their carbon emissions, these companies become more aware of their environmental responsibilities. The research suggests that failing to adopt labor and human rights standards, alongside environmental measures, could lead to reputational risks and accountability, potentially affecting the company's long-term viability. Therefore, while the economic and environmental dimensions of sustainability are directly influenced by carbon emissions accounting, the social component remains less impacted in the current business context.