Management Accounting Research Opportunities in Climate Change Reporting
Journal of Management Accounting Research
20 Pages Posted: 13 Apr 2023 Last revised: 7 Mar 2024
Date Written: March 10, 2023
Abstract
Climate risk is a critically important challenge for society. Current accounting-related efforts include initiatives by regulators to promulgate climate risk disclosure standards, focusing on disclosure of non-financial and forward-looking information. These proposals are certain to evolve over time. With management accounting research’s focus on decision-making and performance evaluation using non-financial performance measures and effective management control systems, management accounting researchers are in a strong position to provide unique input into the ongoing development of these reporting standards. In this commentary, we discuss topics where management accounting researchers can contribute to the standard setting efforts. Contributing to these efforts requires a change in mindset for management accounting researchers from primarily focusing on internal and potentially idiosyncratic decision-makers to a broader audience that includes external providers of capital. However, the reward to doing so is participation in interesting and important research avenues that can have a real impact on society.
Keywords: climate change, sustainability disclosure, climate risk
JEL Classification: M49, M48, M14
Suggested Citation: Suggested Citation