Implementing carbon accounting frameworks in U.S. SMEs: A pathway to sustainable finance and global competitiveness
Year: 2024
Type: article
Abstract: This paper explores the implementation of carbon accounting frameworks within small and medium-sized enterprises (SMEs) in the United States, examining its potential to drive sustainable finance and enhance global competitiveness. Given the rising regulatory pressures and market demands for transparent environmental practices, carbon accounting provides SMEs a structured approach to measure, manage, and reduce greenhouse gas (GHG) emissions. Through a comprehensive analysis, we identify the primary challenges SMEs face in adopting carbon accounting, including limited financial resources, lack of technical expertise, and unclear reporting standards. The study also evaluates the potential benefits, such as improved access to green financing, heightened operational efficiency, and stronger market positioning through alignment with sustainability goals. We propose a framework that prioritizes simplicity and cost-effectiveness, enabling U.S. SMEs to initiate carbon accounting practices with available resources and existing capabilities. Furthermore, we highlight the role of policy support, technological advancements, and industry collaborations in facilitating widespread adoption. Ultimately, this paper underscores the significance of carbon accounting as a strategic tool, equipping U.S. SMEs with the transparency and accountability needed to thrive in an evolving global marketplace that increasingly values sustainability. Keywords: Carbon Accounting, Sustainable Finance, Greenhouse Gas Emissions, Global Competitiveness.
Institution: Eastern Illinois University
Language: English
Subfield: Accounting
Domain: Social Sciences
SDG: Climate action
Open Access status: diamond
OpenAlex ID: W4404602375