An Introduction to the Special Issue on Perspectives on Carbon Accounting and Reporting

This special issue of Foundations and Trends® in Accounting presents perspectives on carbon accounting and reporting. According to Sangster (2016), traditional double-entry bookkeeping most likely emerged in the 13th century to enhance financial accountability. Similarly, double-entry carbon accounting is emerging in response to modern needs, particularly the need for emissions tracking in supply chains. The works in this issue were contributed by leading academic and practitioner experts on carbon accounting. The authors highlight key challenges, including Scope 3 emission double counting, reliance on third-party estimates, the allocation of emissions to products, the importance of integrating carbon accounting with traditional financial and managerial accounting systems, and the need for generally accepted carbon accounting principles. Drawing on Hatfield’s and Ijiri’s work, this introduction argues that double entry’s causal and accountability-focused nature make it well suited to driving corporate action on emissions reduction. Double-entry bookkeeping revolutionized financial accountability centuries ago, and today, its principles are shaping a new frontier—carbon accounting. The articles in this issue on Perspectives on Carbon Accounting and Reporting were contributed by leading academic and practitioner experts on carbon accounting. The authors highlight key challenges, including responsibility for Scope 3 emissions, reliance on third-partyestimates, the allocation of emissions to products, the importance of integrating carbon accounting with traditional financial andmanagerial accounting systems, and the need for commonly accepted carbon accounting standards. Double-entry bookkeeping revolutionized financial accountability centuries ago, and today, its principles are shaping a new frontier—carbon accounting. The articles in this issue on Perspectives on Carbon Accounting and Reporting were contributed by leading academic and practitioner experts on carbon accounting. The authors highlight key challenges, including responsibility for Scope 3 emissions, reliance on third-party estimates, the allocation of emissions to products, the importance of integrating carbon accounting with traditional financial and managerial accounting systems, and the need for commonly accepted carbon accounting standards.