Application of Artificial Intelligence in Carbon Accounting and Firm Performance: A Review Using Qualitative Analysis

Journal Title: International Journal of Experimental Research and Review - Year 2023, Vol 35, Issue 6

Abstract

The increasing role of the corporate sector in global carbon emissions has raised significant concern among stakeholders, leading to a thorough reassessment of corporate responsibility. Corporations, directly influencing society due to their carbon emissions, acknowledged as externalities, are facing growing pressure to tackle this environmental challenge actively. As a reaction, companies are increasingly implementing carbon accounting and other environmentally conscious practices in line with a broader dedication to comprehensive environmental ethics. The accounting department, tasked with incorporating carbon accounting into non-financial reports alongside regular financial statements, encounters adoption obstacles such as limited awareness, insufficient expertise, unclear guidelines, and a lack of standardized terminology. This paper conducts a comprehensive study to evaluate the feasibility of using artificial intelligence (AI) solutions in carbon accounting and its subsequent effect on firm performance based on the well-established effectiveness of AI in financial reporting and accounting tasks. As of 2021, Saudi Aramco, the foremost emitter of carbon dioxide worldwide, accounts for more than 4 percent of global Greenhouse Gas Emissions. This highlights the pressing necessity for intervention in this industry. Moreover, the study highlights electricity and heat production as the primary global sources of carbon emissions. The research demonstrates a clear link between effective carbon accounting practices and improved firm performance, especially when stakeholders are highly aware of sustainability issues. Nevertheless, the paper highlights the considerable obstacles and the urgent requirement for extensive advancement in AI applications to fully exploit its potential as a significant resolution to the complexities of carbon accounting. The study is limited by the wide range of accounting standards companies use to disclose their environmental impact and a need for more information on using artificial intelligence in carbon accounting. The research highlights the crucial significance of collaborative endeavours in promoting AI solutions to strengthen carbon accounting practices, thereby enhancing corporate sustainability and overall performance.

Authors and Affiliations

Abdulrahman Saad H. Alqahtani

Keywords

Related Articles

Effect of platinum nanoparticles on rabbit spermatozoa motility and viability Lucia Dianová

Male reproductive health is becoming a frequently asked question nowadays. Spermatozoa can be highly sensitive to various substances found in the environment. With the accretive usage of nanoparticles in technology and m...

Occurrences of seven new records of goat fishes (family: Mullidae) from the coastal waters ofWest Bengal, India

Thirty eight fish specimens of family Mullidae were collected during the ornamental faunal survey around the West Bengal coast. All these specimens were identified into seven species which are addition to the faunal reso...

Effective medical leaf identification using hybridization of GMM-CNN

Medical plants play a vital role in curing many diseases. These plants, along with their leaves, have medicinal values. If these leaves are identified appropriately, they can be chosen directly to have more significant r...

Assessment of undernutrition among Santal children of Bolpur-Sriniketan block of Birbhum District, West Bengal, India

Present cross sectional study was undertaken to assess the nutritional status of 348 pre-primary and primary school going Santal children aged 4 to 10 years which includes 186 boys and 162 girls of Bolpur-Sriniketan Bloc...

Disharmoy between man-environment relationship: A serious threat to the Sundarban's wild nature

The Sundarban ecosystem is a unique natural wonder of the World & carries a great ecological significance. It has a rich biological diversity of aquatic & terrestrial flora & fauna & the mangrove forests, Sundarban’s hig...

Download PDF file
  • EP ID EP724734
  • DOI 10.52756/ijerr.2023.v35spl.013
  • Views 49
  • Downloads 0

How To Cite

Abdulrahman Saad H. Alqahtani (2023). Application of Artificial Intelligence in Carbon Accounting and Firm Performance: A Review Using Qualitative Analysis. International Journal of Experimental Research and Review, 35(6), -. https://europub.co.uk/articles/-A-724734