Institutional Governance Framework for Determining Carbon-related Accounting Practices

An Exploratory Study of Electricity Generating Companies in Malaysia

Research output: Contribution to journalArticle

Abstract

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.

Original languageEnglish
Article number012063
JournalIOP Conference Series: Earth and Environmental Science
Volume32
Issue number1
DOIs
Publication statusPublished - 19 Apr 2016

Fingerprint

electricity industry
climate change
carbon
carbon emission
environmental management
emissions trading
certification
stakeholder
sustainability
electricity company
accounting
industry
accounting system

All Science Journal Classification (ASJC) codes

  • Environmental Science(all)
  • Earth and Planetary Sciences(all)

Cite this

@article{bd9f7d27e68342a6beaf5eb424d44a90,
title = "Institutional Governance Framework for Determining Carbon-related Accounting Practices: An Exploratory Study of Electricity Generating Companies in Malaysia",
abstract = "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.",
author = "Bakhtiar Alrazi and {Mat Husin}, Norhayati",
year = "2016",
month = "4",
day = "19",
doi = "10.1088/1755-1315/32/1/012063",
language = "English",
volume = "32",
journal = "IOP Conference Series: Earth and Environmental Science",
issn = "1755-1307",
publisher = "IOP Publishing Ltd.",
number = "1",

}

TY - JOUR

T1 - Institutional Governance Framework for Determining Carbon-related Accounting Practices

T2 - An Exploratory Study of Electricity Generating Companies in Malaysia

AU - Alrazi, Bakhtiar

AU - Mat Husin, Norhayati

PY - 2016/4/19

Y1 - 2016/4/19

N2 - 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.

AB - 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.

UR - http://www.scopus.com/inward/record.url?scp=84966539705&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84966539705&partnerID=8YFLogxK

U2 - 10.1088/1755-1315/32/1/012063

DO - 10.1088/1755-1315/32/1/012063

M3 - Article

VL - 32

JO - IOP Conference Series: Earth and Environmental Science

JF - IOP Conference Series: Earth and Environmental Science

SN - 1755-1307

IS - 1

M1 - 012063

ER -