Climate change and business accountability, empirical evidence on the roles of environmental strategy and environmental accounting

Mohammed S.Y. Omran (Lead / Corresponding author), Mohammad N.S. Yaaqbeh

    Research output: Contribution to journalArticlepeer-review

    1 Citation (Scopus)


    This study examines the roles of environmental strategy and accounting in corporate carbon performance, as measured by the Greenhouse Gas (GHG) Protocol. A novel interaction model is developed based on legitimacy theory and natural-resource dependence theory to capture the interaction between environmental strategy and accounting. An international sample of 3322 firms from 73 countries is used in the analysis, based on a panel data design for 17 years (2005–2022). The empirical findings reveal an overall reactive role of these environmental initiatives in relation to carbon performance. The marginal effect analysis shows that environmental accounting favourably moderates the effect of environmental strategic functions on carbon performance, indicating that the former facilitates the translation of the latter into practice. Similarly, environmental strategic initiatives improve the impact of environmental accounting information on carbon performance. The main contribution of this study stems from methodologically demonstrating how the synergy between environmental strategic initiatives and environmental information mechanisms can translate into improved carbon performance. This finding has multiple societal, practical and research implications. The interaction effect evidence can be viewed as consistent with recent trends of integrated approaches to thinking and reporting, where interrelated phenomena are integrated into operational and reporting contexts to improve efficiency. This can be of interest to policymakers, investors, corporate managers and providers of assurance services related to carbon performance.

    Original languageEnglish
    Pages (from-to)1592-1608
    Number of pages17
    JournalBusiness Ethics, the Environment and Responsibility
    Issue number4
    Early online date16 Aug 2023
    Publication statusPublished - Oct 2023


    • business accountability
    • carbon management
    • climate change
    • environmental accounting
    • environmental policy
    • environmental strategy
    • greenhouse gas

    ASJC Scopus subject areas

    • Business and International Management
    • Philosophy
    • Economics and Econometrics
    • Organizational Behavior and Human Resource Management
    • Management, Monitoring, Policy and Law


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