Institutional Governance Framework for Determining Carbon-related Accounting Practices: An Exploratory Study of Electricity Generating Companies in Malaysia

International Conference on Advances in Renewable Energy and Technologies 2016

Alrazi, B.^1 ; Husin, N. Mat^1

Department of Accounting, College of Business Management and Accounting, Universiti Tenaga Nasional, Malaysia^1

关键词: Accounting practices;    Emissions Trading Scheme;    Environmental management system certification;    Environmental organizations;    Generating companies;    Global carbon emission;    Governance mechanisms;    Sustainability report;   

Others  :  https://iopscience.iop.org/article/10.1088/1755-1315/32/1/012063/pdf
DOI  :  10.1088/1755-1315/32/1/012063

来源: IOP

【 摘 要 】

Electricity industry is the major contributor of the global carbon emissions which has been scientifically identified as the main cause of climate change. With the various initiatives being implemented at the international, national, and industry levels, companies in the electricity industry are currently facing immense pressure from various stakeholders to demonstrate their policies, initiatives, targets, and performance on climate change. Against this background, accounting system is argued to be able to be play important roles in combating climate change. Using institutional governance as the underlying framework, we have identified several governance mechanisms as the determining factors for companies to have a systematic accounting system related to carbon emissions. The factors include environmental management system certification, environmental organization, publication of stand-alone sustainability reports, the use of GRI guidelines, environmental strategic planning, governance quality, and participation in CDP surveys and emissions trading scheme. We explored this issue in the context of major electricity generating companies in Malaysia and found that except for certified environmental management system, the other governance mechanisms are still lacking. The findings suggest that companies in Malaysia, in particular, from the electricity industry are not well prepared in facing risks related to climate change.