Accounting for Carbon Commitments: A Critical Inquiry Into the Discrepancy Between Net-Zero Claims and Emission Accounting Practices in Global Corporations

Abstract

This research explores the growing divide between the public promises made by global corporations under their net‐zero emissions targets and the practical realities of carbon accounting. The study investigates whether corporate climate disclosures represent genuine efforts to reduce environmental harm or serve as strategic tools to enhance reputation while masking underlying failures. Drawing on a qualitative synthesis of fifty peer‐reviewed journal articles from 1985 to 2022, the paper examines patterns in emissions measurement, carbon offset reliance, and disclosure practices. The findings reveal that many firms depend predominantly on carbon offsetting strategies rather than substantive emissions reduction and that disclosures often lack in transparency and independent verification tend to serve a symbolic purpose. The study further discusses the evolving role of accounting professionals in ensuring climate accountability and the need for strengthened reporting standards and assurance practices to restore stakeholder trust. Implications for regulators, practitioners, and policymakers are discussed, along with recommendations for reforming both corporate carbon accounting frameworks and the assurance mechanisms that underpin sustainability reporting.