Carbon Accounting Management in the Production Supply Chain

Document Type : Research Paper

Authors

1 Associate Professor, Department of Accounting, Arak Branch, Islamic Azad University, Arak, Iran.

2 Ph.D. Candidate, Department of Economics, Arak Branch, Islamic Azad University, Arak, Iran.

3 Department of Accounting,Ar.c, Islamic Azad University,Arak,Iran

Abstract

Abstract
Introduction
In recent years, the escalation of climate change and mounting environmental concerns have compelled organizations to rigorously quantify and mitigate their greenhouse gas (GHG) emissions. Consequently, carbon accounting has emerged as a pivotal management instrument for the systematic quantification of emissions throughout the entire value chain.
Objective
This study provides a comprehensive examination of carbon accounting management, investigating diverse existing frameworks, its specific functional role within supply chain operations, and the associated practical challenges and future opportunities.
Research Method
This study employs a structured literature review methodology to synthesize existing knowledge regarding the implementation of carbon accounting within production supply chains. The analysis encompasses established international standards and practical case studies to delineate the scope, application, and limitations of contemporary carbon measurement tools, specifically the GHG Protocol and ISO 14064.
Results and Discussion
The findings demonstrate the broad applicability of carbon accounting across all stages of the supply chain, from raw material extraction to final product delivery. The deployment of these methodologies enables organizations to identify critical emission hotspots and implement targeted corrective measures. Furthermore, rigorous carbon accounting enhances strategic decision-making, organizational transparency, and accountability, while fostering improved stakeholder relations. Nevertheless, significant barriers persist, including the inherent complexity of global supply chains, the absence of fully harmonized standards, and pervasive data scarcity.
Conclusion
Ultimately, strategic investment in the development and deployment of comprehensive carbon accounting systems enables organizations to secure sustainable competitive advantages and establish leadership in corporate sustainability. Future trends underscore the growing importance of these systems, particularly as global standards mature and market demand for low-carbon products intensifies.

Keywords

Main Subjects

References

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Journal of Environmental and Natural Resource Economics
Volume 5, Issue 13
September 2025

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History

  • Receive Date: 22 November 2025
  • Revise Date: 20 January 2026
  • Accept Date: 21 January 2026

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