Sustainable Development Through Carbon Net‐Zero Strategies: Analyzing External and Internal Factors, Corporate Carbon Accounting, and Scope 3 Emissions Reduction

ABSTRACT This study examines how external pressures and internal corporate drivers shape the adoption of carbon accounting practices and their effectiveness in reducing Scope 3 greenhouse gas (GHG) emissions among leading European companies. Drawing data from 90 European companies recognized as climate reporting pioneers in the CDP database, the study tests five hypotheses and develops a framework linking governance and strategic management factors to Scope 3 emissions outcomes. Original data from annual and sustainability reports provide the empirical foundation for this analysis. The findings reveal that Scope 3 emissions have not declined significantly in recent years, largely due to inadequate policy and regulatory guidance. Nevertheless, the study identifies a meaningful correlation between carbon performance and the pursuit of proactive carbon strategies. These results underscore the need for transparent sustainability reporting standards and accessible climate data to accurately evaluate corporate carbon strategies. Furthermore, the study highlights how external pressures and internal corporate ambitions jointly shape organizational goal setting and drive the adoption of carbon accounting practices, which ultimately improve environmental performance and support sustainable development.