CARBON ACCOUNTING: ITS ROLE IN CORPORATE SUSTAINABILITY

Abstract

In the context of climate change and increasing pressure to reduce greenhouse gas (GHG) emissions, carbon accounting has become a crucial management tool that enables businesses to meet environmental requirements and transition toward sustainable development. The purpose of this study is to clarify the role of carbon accounting in promoting corporate sustainability by closely integrating environmental, social, and governance (ESG) factors. The research employs a systematic literature review method based on scientific articles published in reputable journals. The research process includes the following steps: searching for relevant sources, screening materials, coding information, and content analysis according to five main themes: (i) environment, (ii) society, (iii) governance, (iv) competitive advantage, and (v) reputation. The results show that the governance factor accounts for the highest proportion (46.5%), followed by competitive advantage (23.7%) and corporate reputation (19.1%). Meanwhile, aspects related to the environment (7.3%) and society (3.3%) are addressed to a lesser extent. These findings suggest that, beyond its original role of measuring and monitoring environmental impacts, carbon accounting is being increasingly utilized as a strategic decision-support tool, particularly in enhancing corporate governance efficiency and competitive capacity. The adoption of transparent and accurate carbon reporting systems not only helps businesses minimize legal and operational risks and optimize production costs but also contributes to increasing market value and strengthening stakeholder confidence. Therefore, the study emphasizes the importance of establishing a coherent legal framework and robust internal policies to effectively implement carbon accounting systems, thereby promoting business performance and enhancing the company’s competitive position in the global market.