Social and environmental accounting (SEA) is an important concept as it connects a company’s business activities with its social and environmental responsibilities. The Paris Accord is a major effort of international collaboration to combat carbon emission and climate change. This essay discusses how SEA could be used to assist governments and companies to achieve the goals that are listed in the Paris Agreement.
US quitting the Paris Agreement
Though the Paris Agreement has received global recognition and approval in the past decade, the recent changes in the global political and economic environment have caused some unexpected events. In June 2017, the Trump administration of the US announced the termination of participation in the 2015 Paris Agreement, which could be considered a major setback for the combined efforts to combat climate change (Milman, 2018).
The logic behind this move by the US government is straightforward, because the Pairs Agreement would require each country to achieve the goal of carbon emission reduction by a certain amount. However, it is almost impossible to avoid producing any greenhouse gas by the industrial productions under the current technologies. As a result, the main force behind the decision to quit the Paris Agreement mainly comes from economic considerations.
On one hand, the goal of cutting carbon emission would significantly hurt the traditional fossil fuel industries, which would be gradually replaced with renewable sources of energy. Currently, the US is on the way of becoming one of the top producers of coal and oil, so strong resistance would arise from these sectors against the US participation in the Paris Agreement (Zhang, et al., 2017). Since the US has been rising on its output of oil productions, it won’t be easy for the country to give up on the important strategic resource. Besides, the jobs of the energy industries in the US are also at stake, which may be harmed if carbon emissions are cut significantly under the Paris Agreement (Mulligan, 2017).
In addition, as the US economic focus gradually turns towards protecting its own interests with the “America First” policy, the government has started to evaluate its international activities and participations more based on their internal impacts, rather than with a global perspective as in the past (Zhang, et al., 2017). Based on an empirical study on this issue using the GTAP-E model, quitting the Paris Agreement would increase the real GDP for the US by 1.13%, and the real private consumption by 0.78%. Moreover, the positive influence on the US energy sector by the withdrawal from the agreement is even stronger, which is a strong incentive. And the prices of fossil fuel energy are expected to be lower, especially for coal and oil, which is a result of the expansion of the related industries and increase in the productions (Nong
Understanding of Management Accounting Systems
The understanding and recording of financial information allow the organization to plan, form strategies and reduce errors in the organization. The corporations recruit management