Impact of organisational characteristics on carbon accounting and reporting: A study of Swedish organisations’ scope 3 reporting

Abstract: The practice of producing and publishing sustainability reports that include carbon accounting has become common for companies and organisations to communicate their sustainability performance. The GHG Protocol publishes the most widespread standards for carbon accounting following a methodology approach consisting of scope 1, 2, and 3 emissions where scope 3 emissions constitute the biggest share for most organisations. Previous research has identified factors impacting organisations’ sustainability reports in its broader context but not focusing on scope 3 reporting specifically. Therefore, the objective of this thesis is to identify organisational factors impacting scope 3 reporting specifically. Data from Swedish organisations has been collected through semi-structured interviews and a questionnaire. The data has been used as input variables to an exploratory analysis. The exploratory analysis included factors regarding organisations’ driving forces, management structures, views on scope 3 reporting, and scope 3 reporting practices. The factors positively impacting scope 3 reporting were tracking GHG emissions to find reduction opportunities as the main driving force, using controllers in the scope 3 reporting process, and engaging with value chain partners. The exploratory analysis also identified factors negatively linked with scope 3 reporting. These were stakeholder transparency as a top driver, letting the size of GHG emissions impact data collection efforts, and that financial reporting teams played a consulting part in the scope 3 reporting process. Recommendations were identified for policymakers, for example to include scope 3 emissions as an environmental indicator in reporting requirements and monetise scope 3 emissions. Recommendationswere also identified for organisations, and these were to involve controllers in the scope 3 reporting process and to collaborate with value chain partners. Further research is needed on how these recommendations should be implemented, but the insights from this thesis can be used as starting point for organisations seeking to improve their scope 3 reporting.