Disclosures: Driving Supply Chain Sustainability Through Accounting

Abstract

Discourse concerning the most effective way for enterprises to offset environmental impacts is well established. While certain approaches like the Triple Bottom Line (TBL) have gained widespread acceptance, other initiatives like introducing the Carbon Tax in Australia have not been successful. This study examines the practical implementation of two environmental accounting models, the TBL and Carbon Tax, analysing their benefits and drawbacks and focusing on their application within the Australian accounting system. Using discourse and content analysis within two case studies of two different sectors – the banking sector (Westpac) and the manufacturing sector (BlueScope), this research contributes to the discourse concerning the implementation of such disclosures and how models such as the TBL and Carbon Tax initiative could be effectively used in practice. The results show that the implementation of the TBL was more widely adopted and seen as a positive factor in determining the company's environmental impact as viewed by investors. The Carbon Tax was initially adopted less frequently until modifications were made to allow for voluntary compliance. This was due to the misalignment of the cost of the tax with the financial priorities of each sector. Furthermore, the study suggests that a more comprehensive approach that leverages the strengths of both models to complement each other within an integrated framework may be the best solution for organisations seeking a more systemic approach to environmental disclosures and offsetting in their supply chain network.

Citation

Deo, S., Pepper, M., De Zoysa, A. and Smark, C. (2024), "Disclosures: Driving Supply Chain Sustainability Through Accounting", Elias, A.A., Pepper, M., Gurumurthy, A. and Shukla, A.K. (Ed.) Sustainable and Resilient Supply Chain (Advances in Environmental Accounting & Management, Vol. 12), Emerald Publishing Limited, Leeds, pp. 49-64. https://doi.org/10.1108/S1479-359820240000012007