Carbon accounting, governance, and corporate carbon performance: evidence from Bangladesh

Abstract

The study aims to examine the impact of carbon accounting and governance on carbon performance, with a focus on maximizing Sustainable Development Goal 7, Affordable and Clean Energy, in Bangladeshi ISO-certified manufacturing companies. A quantitative approach was employed to collect primary data through a simple random sampling of 185 ISO-certified manufacturing firms using a questionnaire survey. This study tests the conceptual model by utilizing the ‘Partial Least Squares- Structural Equation Modeling’ for data analysis and evaluating the association between carbon accounting, carbon governance, and carbon performance by attaining SDG 7. This study found that carbon accounting has a significant positive impact on carbon performance, as it maximizes SDG 7. It is also found that carbon governance has a substantial impact on carbon performance, supporting the achievement of Sustainable Development Goal 7 despite prior evidence suggesting a negative association. This study connects the Resource-Based View Theory to carbon accounting, carbon governance, and carbon performance to achieve Sustainable Development Goal 7. It demonstrates how a company can leverage its unique resources to achieve Sustainable Development Goal 7 and deliver clean energy by adopting carbon accounting and governance. This study also links Legitimacy Theory to carbon accounting, carbon governance, and carbon performance, aiming to achieve Sustainable Development Goal 7. The findings suggest that a company can preserve and enhance its social and environmental legitimacy by acting in ways consistent with Sustainable Development Goal 7. This research examines the relationship between corporate actions and sustainability by analyzing how carbon accounting and governance policies can help companies achieve Sustainable Development Goal 7. The findings of this research aid policymakers in crafting effective strategies and act as a reference for future sustainable development studies across geographical contexts.