A new study by EM Lyon Business School (emlyon) in France has revealed that companies voluntarily reporting carbon emissions often rely on internal carbon accounting tools—even when these are less accurate than standardized models.
According to the research, managers tend to prefer in-house carbon tools because they focus on avoided emissions rather than the more challenging metric of absolute emissions, BlueSky Education said in a statement last week.
This selective reporting can present a misleading picture of a company’s environmental performance.
The study, led by Professor François-Régis Puyou of emlyon, in collaboration with Professors Richard Jabot and Simon Alcouffe from TBS Business School, involved 23 interviews and nearly a month of observation within a company that reports its carbon data voluntarily.
The findings suggest that internal carbon models are often used strategically to shape a positive sustainability narrative, one that supports continued growth rather than demanding genuine emission cuts.
“Managers may use carbon accounting to reframe impact rather than confront realities,” said Puyou.
Relevant: Carbon Accounting Firm ctrl+s Expands To North America
Despite internal unease among employees, concerns were rarely voiced openly, allowing the status quo to persist and limiting meaningful progress toward emission reductions.
The researchers argue that such practices risk misleading stakeholders—including investors and regulators—by prioritising appearance over impact.
This, they warn, could ultimately hinder efforts to transition to a low-carbon economy.
“This research highlights a crucial gap between knowing about emissions and acting to reduce them,” added Puyou.
To counteract this trend, the researchers recommend stronger regulations requiring firms to disclose absolute emissions and concrete mitigation plans.
They also call for further study into how managers can better engage with difficult environmental truths in order to drive authentic sustainability efforts.
Read more: American Biogas Council Launches Carbon Accounting Tool For Biogas Projects
