Carbon Accounting: An Indispensable Tool in Handling Climate Change Risks in Southeast Nigeria

AFRAG008

Carbon Accounting: An Indispensable Tool in Handling Climate Change Risks in Southeast Nigeria

Ezuwore-Obodoekwe Charity Nkeiru (PhD)

Department of Accountancy, University of Nigeria, Enugu Campus

Tel No:08166555765; 08184901216

E–mail:charity.ezuwore@unn.edu.ng

Ojiakor Ijeoma Department of Accountancy

University of Nigeria, Enugu Campus ijeoma.ojiakor@unn.edu.ng

Ezichi – Iko Chinasa Ori Department of Accountancy

University of Nigeria, Enugu Campus

08132640186

chinasa.ezichi -iko@unn.edu.ng

Prof Kabiru Dandago Isa Accountancy Department

Bayero University Kano, Kano State Tell +2348023360386

E-mail: kidandago@gmail.com

Abstract

The study examined the effect of carbon accounting on the climate change in Southeast Nigeria. The study specifically examined; the awareness and extent of disclosure of carbon related information by manufacturing firms, the role of accountants   in   setting-   up   a  corporate

carbon        management        system       in

manufacturing firms, and the relationship between corporate carbon emissions and disclosure and corporate financial performance of manufacturing firms. The study used descriptive survey method. The primary sources used were the administration of questionnaire to the staff of the sampled firms. 261 copies of the questionnaire were returned and accurately filled. The validity of the instrument was tested using content analysis and the result was good. The reliability of data was established using Cranach Alpha. It gave a reliability of 90% which was also good. The findings of the analysis indicated that the extent of awareness and disclosure of carbon related information by manufacturing firms is high with a probability value = 0.002. It was also observed that accountants played significant role in setting up a corporate carbon management system in manufacturing firms with a probability value of 0.004 and t-calculated of 6.885. The study further shows there is significant relationship between corporate carbon emissions and disclosure and corporate financial performance of manufacturing firms with a probability value of 0.004. Based on the findings, the study recommends among others that adaptation to conditions that include long-term changing dynamics of the natural environment should be encouraged and the focus of finance and accounting system should not only cover short-term outcomes and management of short-term costing, reporting and disclosure but also long-term climate risks.

Keywords: Carbon Accounting; Risk; Climate Change; Nigeria

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