Title: Dynamic development of carbon reduction strategy and performance measurement systems
Authors: Winnie O'Grady; Sharlene Sheetal Biswas
Addresses: Department of Accounting and Finance, The University of Auckland Business School, Private Bag 92019, Auckland, 1010, New Zealand ' Department of Accounting and Finance, The University of Auckland Business School, Private Bag 92019, Auckland, 1010, New Zealand
Abstract: This study broadly considers the relationship between performance measurement systems (PMS) and environmental strategy. In particular, it examines developments in the carbon reduction strategy and PMS subsequent to the case organisation's enrolment into CEMARS - an external carbon reporting scheme. Using data collected via interviews, public seminars and document analysis, this study shows that developments in carbon reduction strategy and the carbon related performance measures are mutually constitutive and impact one another. The case findings show how increasing sophistication of the PMS facilitated refinements to carbon reduction strategy, which necessitated further changes in the PMS. Additionally, the CEMARS measures were integrated into decision making processes alongside existing PMS measures, thus enhancing the sophistication of the PMS and revealing integration as an additional factor impacting PMS use. The research contributes to the strategy-PMS literature by elaborating on the dynamic nature of this relationship over time. Moreover, the findings suggest practitioners seeking to develop and implement carbon reduction strategies will need to supplement the systems for external emissions reporting with systems for carbon emissions management.
Keywords: performance measurement system; PMS; certified emissions measurement and reduction scheme; CEMARS; carbon reporting; wine industry; carbon reduction strategy; sustainability.
International Journal of Critical Accounting, 2017 Vol.9 No.5/6, pp.371 - 392
Published online: 22 Mar 2018 *
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