CARBON ACCOUNTING, DISCLOSURE AND MEASUREMENT: A SYSTEMATIC LITERATURE REVIEW

Purpose — This research aims to support Sustainable Development Goals specifically to reduce carbon emission. Design/methodology/approach — Systematical literature review was used as a research method, evaluated and analyzed as much as 17 articles. Findings — The result indicate that mitigation is more preferable than adaptation in case of carbon emission accounting definition. Stakeholders were involved to applied carbon disclosure which support the stakeholder theory, while measurement of carbon emission found that carbon-footprint approach is more widely used by organizations. Practical Implications — Environmental field become one of the SDG’s (Sustainable Development Goals) objectiveas it is related to the climate change caused by carbon emission that significantly increase from 1990’s. Originality/value — This research delivers concept, definition, practice, and measurement of gas emission based on previous research result (by several researchers/research paper) in various countries.


INTRODUCTION
Recently, climate change become a global issue and being concern in the most countries around the world. United Nations Framework Convention on Climate Change (UNFCCC) explain that human activities, both direct and indirect, are a factor that lead to the climate change which shifted the world athmosphere composition (Intergovernmental Panel on below 2°C. Production of gas emission in Indonesia absolutely reaches 1.2% of total world emissions which put Indonesia in the 21 st position worldwide. In Indonesia, carbon emission disclosure is still classified as voluntary because Indonesia is a Non-Annex group, means developing country that is not required to reduce carbon emissions, but reports on emissions status. The importance of disclosing carbon emission is expected to push the companies to be more transparent about environmental information, so that stakeholders can monitor the extent to which companies care about climate change (Ernst & Young, 2011).
Company management will be pressured to evaluate climate change concerns, including company policies. Carbon report is a company policy that can maintain its legitimacy (Pellegrino &Lodhia, 2012), which shows that companies operate according to social, legal and community norms.
Unfortunately, carbon reports are still voluntary in some countries, so they do not yet have standardized standards and cause differences in disclosure. Another consideration is the difficulty of measuring carbon emissions. Some researchers even give different definitions to carbon accounting. This study aims to provide the concept of carbon accounting in the sense of integrating aspects of climate change into accounting and measurement through mitigation and adaptation. This study refers to the research of Stechemesser and Guenther (2012), who found several scales

Vol. 28, No. 2 August 2020 © Centre for Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
of understanding of carbon accounting, and Ascui and Lovell (2011), about five framing carbon accounting.
The contribution of this research is to provide benefits for companies, governments and policy makers related to the recording, measurement and reporting of carbon emissions. The results of the carbon accounting concept can support one of SDG's objectives, in environmental aspects.

Carbon Accounting
The definition of carbon accounting based on available evidence is difficult to understand and problematic (Ascui and Lovell, 2011).
Therefore, the term carbon itself gives a different meaning, scientists understand strictly with something that is carbon (elemental carbon), or more popular greenhouse gases or CO2. When combined with accounting into different frames, it is possible to give different meanings.
Carbon accounting is recognizing, monetary and non-monetary evaluation and monitoring of greenhouse gases at each level of the value chain and recognizing, evaluating and monitoring the impact of gas emission on the ecosystem of the carbon cycle (Stechemesser and Guenther, 2012). Carbon accounting can occur at several scales (see figure 2). First, carbon accounting at the National level is further developed by the Kyoto protocol (Gibassier, 2015). Second, at the organizational level, carbon accounting consists of three types, which are upstream scope 3 emissions, scope 1 and 2 emissions and downstream scope 3 emissions. Finally, at the product level, directly related to the production process. Some companies

FIGURE 2 RELATIONSHIP BETWEEN CORPORATION (ORGANIZATION) AND PRODUCT
Source: GHG Protocol, 2011 As explained earlier in relation to the coverage of gas emissions (also called operational boundaries), scope 1 including gas emission can be directly controlled by the organization. This boundary is a territorybased approach. Scope 2 includes indirect gas emissions related to electricity production. Companies can only reduce by investing in sophisticated technology, while scope 3 emissions are not directly as a result of a company's operations. This can be controlled by other companies.
The initiation of carbon accounting was launched at different levels, from the National to local and corporate levels, but there was no coordination between those two. There are two categories of calculation approaches (Brohe, 2017). First, the territory-based approach, which Another alternative strategy, that is mitigation, is essentially an organization trying to avoid gas emissions (GHG). The focus of implementation and operations relates to organizational structure and processes (Schaltegger et al., 2015).

RESEARCH METHOD
This study refers to the research method used by Stechemesser and Guenther (2012), using a systematic literature review.

DISCUSSION
The discussion uses four steps:

Step 1 and 2 (Mapping articles and searches comprehensively)
The discussion is based on research journals that have been collected   (2019) Thus, in this study analyzing as many as 17 journals that are relevant to the research question.

Step 3 (Quality Valuation)
After classification according to Table 1 above, the researcher made further groupings for journals that were considered relevant to the themes discussed. Relevant journals are grouped into three main discussion groups: journals that discuss the definition of carbon accounting, journals that discuss the application of carbon accounting and journals that discuss the measurement of carbon accounting. The results of the grouping can be seen in Table 2.
The relevant groupings of journals consist of two journals for the definition of carbon accounting, seven journals for their application, while the measurement of carbon accounting is in 4 journals. Next will be discussed for each journal result.

Step 4 (Data Extraction)
The results of data extraction are summarized in table 3. The extraction process has been carried out by the procedure of perusing the articles one by one that is obtained, summarizes and the final stage will be pressured (step 5). Based on the data extraction results there are two journals from Accounting, Auditing and Accountability Journal, and Corporate Carbon and Climate Accounting, which explain the definition of carbon emissions accounting.
Discussion of carbon emission disclosure divide into seven journals (details include in Table 3). As well as journal definition and research name of carbon emission measurement, was also provided in Table 3.The most journals in this research were Accounting, Auditing, and Accountability Journals, with four articles, while others varied. Since researchers obtained only few journals for 2019, the results can not be present in this research.

4.Step 5 (Synthesis)
This stage will discuss each of which can be synthesized according to the research questions.

Carbon Accounting Definition
Author found two journals explain all things related to the definition of carbon accounting, which are Ascui and Lovell (2011) and Zvezdov and Schaltengger (2015). Those researches clarify community reponses overcoming climate change problems such as carbon trading, national emission limitation commitments, measurement of carbon performance, and so on. Therefore, Acsui and Lovell (2011)  Based on thus two studies, can be concluded that definition of carbon accounting is a process of measuring carbon emission produced by an organization, providing efforts to reduce and report measurement's results to the stakeholder, in order to support sustainable development goals. In addition, carbon accounting is a real response to current global problem, climate change.
The discussion in the two articles above, support climate change measurement in mitigation aspect rather than adaptation. This is in line with the findings of Stechmesser and Guenter (2012) through an article review. The mitigation approach tends to minimize the costs of the global warming effect through reduction goals (Brohe, 2017). Therefore, for companies, mitigation approach is relatively easier to apply than adaptation.

4.2.Carbon Accounting Application
In this discussion, researcher found seven journals examine carbon accounting application in various aspects. First study was conducted by Hrasky (2011), discuss organization reporting carbon footprints disclosure. The fact, reporting of carbon footprints is consistents with legitimacy theory in gaining public recognition. Schuman (1995) stated that organizations want legitimacy to build assumption that an organization has acted based on the value and norm applied and do Several journals found by researcher also discussed the factors that influence carbon disclosure activities for an organization. Melo (2012) found that corporate social performance was directly proportional to organizational culture and tenure management.
Melo (2012)  company. Obviously, the existence of sufficient financial conditions and a long period of management work will increase the effectiveness of the company's social performance.
Choi, Lee and Psaros (2013) found several factors that can motivate an organization's voluntary disclosure of carbon emissions generated in its annual report. The first factor is the level of carbon emissions produced, so organizations in the carbon-intensive sector will make carbon emissions disclosures more broadly and comprehensively.
The second factor is the size of the organization where organizations with large size and complex organizational levels will provide broader carbon emissions disclosure. The third factor is the quality of organizational governance because organizations with good governance are considered to be more responsible for all operational implications, especially to the environment, so that it will provide wider disclosure of carbon emissions.
factor is the size of the organization where organizations with large size and complex organizational levels will provide broader carbon emissions disclosure. The third factor is the quality of organizational governance because organizations with good governance are considered to be more responsible for all operational implications, especially to the environment, so that it will provide wider disclosure of carbon emissions.
Things that can be identified significantly related to voluntary reporting of greenhouse gas emissions are organizations that doing voluntary reporting of greenhouse gas emissions and applying an environmental management system, have a good organizational governance system and conduct open reporting on the Carbon Disclosure Project (one of the non-profit The credibility of the emissions report is also strengthened by several things. The adoption of an ISO14001 certified environmental management system adds credibility to reporting. The larger the size of the organization will also provide wider and more credible reporting. In addition, pressure from institutional investors (institutional investors) who expect a good organizational carbon performance affects the credibility of the reporting organization.
Institutional Investors usually play an important role in the social activities of an organization including carbon accounting practices, because of the significant influence that comes from the large portion of its ownership in an organization. When Institutional Investors want an organization they have to improve their social performance, as well as carbon accounting practices, the organization will in theory do everything the investors want, especially those with a significant portion of ownership.
The implementation of carbon emissions disclosure is influenced by several factors, one of which is good governance. This will work effectively if the company has good environmental management (Choi, Lee and Psaros, 2013;Rankin, Windsor and Wahyuni, 2011 Comparative researches related to carbon emissions measurement are growing in numbers and in many regions (Maalouf and El-Fadel, 2018).
That results in the high variability of the measurement methods, since the elements used in each method are varying; such as gases included, emission forms, measurement scope, and many others. This is because most methods are introduced in developed countries which have different parameters and focus.
Discussions in several carbon accounting journals show carbon measurements vary in practice. Although sharing the same goal to quantify emissions, differences remain exist due to variations in elements included in the calculation, and the focus of each measurement. The background and home country of the inventors also lead to differences in the measurements.
Looking at the variations of measurement methods, the researcher recommends that an international organization needs to be established as a regulatory body in carbon accounting. The organization can hopefully unify the different perspectives related to carbon accounting and issue an operating standard that can be universally applied by all organizations globally. The role of the government is still very crucial in supporting this organization, so that the standard can be applied in every country. This is also to address the bigger, universal issue of climate change.

Vol. 28, No. 2 August 2020 © Centre for Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
The research finds that definition of carbon emission accounting is currently in mitigation level, consistent with the findings of Stechmesser and Guenter (2012). Carbon accounting application that has been applied by organizations tend to direct towards carbon disclosure, holding stakeholder views instead of legitimacy. Whether management actions are categorized as substantive or symbolic need further research.
Lastly, article review on carbon emissions measurement finds that carbon measurement uses production basis or footprint approach. This is because consumption basis or territory-based approach basically use national production report (Kyoto Protocol uses this basis).

CONCLUSION
This research aims to define carbon accounting, as well as how to apply and measure carbon accounting by systematic literature review. This research finds that: 1. Definition of carbon emissions accounting uses mitigation approach instead of adaptation. Mitigation is relatively easier for organizations to apply.
2. Applications of carbon emissions disclosure tend to prioritize the needs of stakeholders, hence supporting stakeholder theory.
3. Carbon emissions measurement uses production basis or footprint approach. This is because consumption basis or territory-based approach basically use national production report (Kyoto Protocol uses this basis).
The result contributes to stakeholder theory which is widely used in organizational reporting on carbon emissions. Decision makers need to consider the rising number of regulations regarding carbon emissions disclosure.

LIMITATIONS AND SUGGESTIONS
The limitations of this study are: 1. Only a small number of articles were found using the keywords chosen. The following studies are expected to enlarge the search scope and add more keywords, such as sustainability and SDGs.
2. This research finds that a lot of people are debating whether carbon emissions disclosures are symbolic or substantive in nature. The following studies are expected to focus on management actions regarding this disclosure.