The Drivers and Barriers of Corporate Carbon Accounting Adoption: A Systematic Review of Managerial, Organizational, and Policy Factors

Background: As climate change accelerates, corporations are under pressure to manage and report their greenhouse gas (GHG) emissions. While various carbon accounting tools and environmental management practices exist, adoption is inconsistent and effectiveness in reducing emissions is debated. Small and mediumsized enterprises (SMEs) which make up a significant portion of global economic activity and pollution are often overlooked in policy and research. Objective: To systematically review the empirical evidence on the drivers, barriers and outcomes of corporate GHG accounting and management practice adoption with a focus on the role of managerial, organisational and policy factors in large corporations and SMEs. Methods: A systematic search was conducted across Scopus, Web of Science and Google Scholar from inception till date using comprehensive search terms for corporate environmental management, GHG accounting and performance outcomes. The search process was supplemented by screening reference lists of included articles. From an initial pool of 1249 identified records, 52 full text articles were assessed for eligibility resulting in 24 studies that met the predefined criteria. The diverse methodologies of the included studies (e.g. econometric analyses, case studies, surveys and literature reviews) precluded a quantitative metaanalysis; therefore, a narrative synthesis was performed. Study quality was critically appraised using design appropriate criteria. Results: The evidence shows a complex interplay of factors influencing GHG management adoption. Key external drivers are regulatory pressure, investor and stakeholder demands and the pursuit of legitimacy. Internal motivations are dominated by financial benefits (cost savings and competitive advantage) and managerial values and environmental awareness. For SMEs the barriers are severe: (1) resource constraints (financial, personnel and time); (2) lack of specialist knowledge and technical expertise; (3) difficulty in getting reliable data for comprehensive accounting. Managerial characteristics (executive ability, personal values and environmental attitudes) emerged as key determinants of both adoption and environmental performance. Several studies found a troubling disconnect where formal environmental practices were adopted but didnot lead to significant emissions reductions – greenwashing. Others found ―green blushing‖ where SMEs took substantive environmental action without formal reporting. Conclusion: Corporate carbon management is a balance of external pressure and internal capability with managerial will and ability being the oftenoverlooked key. The big implementation gap especially in SMEs shows that current policies and tools are not aligned with their reality. Future policy must move beyond one size fits all mandates to offer targeted, resource appropriate support and simple accounting frameworks to bridge the gap between corporate intention and climate action.