The integration of Carbon Accounting Measurements into Corporate Sustainability Strategies: a perspective from an industrial application

Evaluating corporate sustainability performance is essential for the formulation of strategies and the engagement of stakeholders. Companies are required to establish precise and measurable sustainability objectives. Carbon accounting plays a vital role in advancing corporate sustainability initiatives by offering a systematic methodology to quantify, manage, and report carbon emissions, thus ensuring compliance, transparency, and performance improvement. Despite its merits, the implementation of carbon accounting encounters several challenges, such as limited awareness, insufficient expertise, and a lack of standardized terminology and guidelines. The existing literature lacks an empirical perspective that could assist industries in addressing their specific needs. Consequently, further research is necessitated to investigate the influence of carbon accounting on corporate sustainability strategies. This article presents a case study of an Italian manufacturing subsidiary's strategic planning towards sustainability, highlighting the reduction of emissions and compliance with European regulations. It highlights the corporate sustainability strategy and plan towards climate neutrality, emphasizing the integration of carbon accounting into strategic corporate planning for sustainability. Since 2009, the Company has aligned its management frameworks with social and environmental responsibilities, guided by ISO standards, enhancing regulatory compliance and continuous improvement. In 2020, the Company aimed for carbon neutrality by 2030, focusing on reducing greenhouse gas emissions through standardized assessments. Transitioning to 100% renewable electricity and a climate-neutral natural gas supplier, along with acquiring carbon credits, enabled the Company to offset Scope 1 and 2 emissions ahead of schedule. Addressing Scope 3 emissions, which constitute over 98% of inventories, necessitates an exhaustive evaluation of the supply chain. In response to European regulations, the Company implemented initiatives aimed at reducing emissions during the product use-phase associated with electrical energy consumption. These efforts initially included client surveys conducted in 2022 and 2023, which enhanced customer awareness and engagement with the Company's carbon neutrality planning. Afterwards, an innovative eco-design strategy was introduced, resulting in a 40% increase in product energy efficiency and consequently providing a competitive advantage. Within the framework of this case study, carbon accounting emerged as a crucial tool for incorporating sustainability strategies into the Company's business practices, thereby facilitating the achievement of specific environmental objectives. Furthermore, recorded outcomes demonstrated that generating sustainable value not only boosts environmental performance but also increases business values. The outcomes of these initiatives include the achievement of the EcoVadis Medal, the publication of a sustainability report, and a substantial progression towards compliance with the Corporate Sustainability Reporting Directive.