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ABSTRACT Under the Paris Agreement, firms increasingly face complex and varied challenges in carbon management. Carbon control within management control systems has emerged as a crucial approach to support managers in navigating these challenges. Applied to carbon management, carbon control not only facilitates compliance with climate mitigation targets but also supports corporate carbon strategies. Utilising diagnostic and interactive levers, this study leverages a new carbon control framework to examine how firms operationalise carbon controls in practice. The findings show that diagnostic and interactive controls work in tandem, forming a cohesive system that supports strategy implementation. The analysis identifies five carbon control domains of carbon strategy implementation: carbon target operationalisation, carbon information management, carbon management decision support, execution monitoring and adjustment, and communication. Specifically, diagnostic levers support structured carbon tracking and KPI-driven decision-making, while interactive levers foster dynamic adjustments and strategic dialogue. This dual-lever approach offers a solid framework for corporate carbon control, providing actionable insights for organisations pursuing carbon reduction and net-zero strategy implementation. Overall, this study suggests that carbon management control systems can help firms connect carbon targets, carbon information, and the review and adjustment processes required to implement and achieve a net-zero strategy.
Lee et al. (Wed,) studied this question.