Carbon costing and control through activity-based emissions accounting

As climate regulations intensify and stakeholder expectations evolve, management accountants are increasingly called upon to integrate carbon metrics into financial decision-making. This report, based on operational data from DP World Southampton, explores how Activity Based Costing (ABC) can be adapted to trace and manage emissions as measurable costs.

Led by researchers from the University of Southampton, the study demonstrates how emissions from electricity, fuel, and refrigerants can be costed per activity and container unit, enabling carbon-inclusive budgeting, pricing, and investment planning.

By linking emissions directly to operational activities, the report equips management accountants with tools to identify carbon-intensive processes, evaluate marginal abatement costs, and support internal decision-making. This approach moves beyond reporting, enabling accountants to actively shape low-carbon strategies and demonstrate the financial value of environmental performance.