Carbon accounting for the translation of net-zero targets into business operations

This paper explores the translation of the global decarbonization goal into net-zero organizational targets. Building on the Institutional Analysis and Development (IAD) framework developed by Ostrom and focusing on the case of the Science-based Target Initiative (SBTi), we study how accounting mediates in this translation. The study consists of an in-depth examination of SBTi's publicly available sources, which helped us identify and structure the subsequent analysis around four analytical dimensions: timeframe, target boundary, methods, and monitoring mechanisms. The findings of our analysis suggest that different points of friction are challenging the mediation of accounting and hindering the definition of net-zero targets and, therefore, corporate decision-making in response to climate urgency. The implications of our case spill over into recent sustainability standards, which provide a lower level of granularity in defining the technical accounting aspects of net-zero targets.