Intellectual capital through decarbonization for achieving Sustainable Development Goal 8: a systematic literature review and future research directions
| Date | 26 July 2024 |
| Pages | 54-86 |
| DOI | https://doi.org/10.1108/JIC-05-2024-0131 |
| Published date | 26 July 2024 |
| Subject Matter | Information & knowledge management,Knowledge management,HR & organizational behaviour,Organizational structure/dynamics,Accounting & finance,Accounting/accountancy,Behavioural accounting |
| Author | Assunta Di Vaio,Anum Zaffar,Meghna Chhabra |
Intellectual capital through
decarbonization for achieving
Sustainable Development Goal 8:
a systematic literature review and
future research directions
Assunta Di Vaio and Anum Zaffar
Department of Law, University of Naples Parthenope, Naples, Italy, and
Meghna Chhabra
Delhi School of Business, Delhi, India
Abstract
Purpose –The aim of this study is to review the literature on how intellectual capital (IC) contributes to the
decarbonization efforts of firms. It explores how carbon accounting can measure the components of IC in
decarbonization efforts to balance profitability with environmental and social goals, particularly in promoting
decent work and economic growth (Sustainable Development Goal[SDG] 8 and its targets [2, 5, 6, 8]). Moreover,
it emphasises the importance of multi-stakeholder partnerships for sharing knowledge, expertise, technology,
and financial resources (SDG17-Target 17.G) to meet SDG8.
Design/methodology/approach –As a consolidated methodological approach, a systematic literature
review (SLR) was used in this study to fill the existing research gaps in sustainability accounting. To
consolidate and clarify scholarly research on IC towards decarbonization, 149 English articles published in the
Scopus database and Google Scholar between 1990 and 2024 were reviewed.
Findings –The results highlight that the current research does not sufficiently cover the intersection of carbon
accounting and IC in the analysisof decarbonization practices. Stakeholders and regulatory bodies are increasingly
pressuring firms to implement development-focused policies in line wi th SDG8 and its targets, requiring the
integration of IC and its measures in decarbonization processes, supported by SDG17-Target 17.G. This integration
is useful for creating business models that balance profitability and social and environmental responsibilities.
Originality/value –The integration of social dimension to design sustainable business models for emission
reduction and provide a decent work environment by focusing on SDG17-Target 17.G has rarely been
investigated in terms of theory and practice. Through carbon accounting, IC can be a key source of SDG8-
Targets 8.[2, 5, 6, 8] and SDG17-Target 17.G. Historically, these major issues are not easily aligned with
accounting research or decarbonization processes.
Keywords Intellectual capital (IC), Decarbonization processes,
Decent work and economic growth (SDG8-Targets 8.[2, 5, 6, 8]), Carbon accounting,
Partnerships (SDG17-Target 17.G)
Paper type Research paper
JIC
25,7
54
© Assunta Di Vaio, Anum Zaffar and Meghna Chhabra. Published by EmeraldPublishing Limited. This
article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may
reproduce, distribute, translate and create derivative works of this article (for both commercial and non-
commercial purposes), subject to full attribution to the original publication and authors. The full terms of
this license may be seen at http://creativecommons.org/licences/by/4.0/ legalcode
The authors would like to thank the editor-in-chief, associate editor and reviewers for handling the
manuscript, providing helpful comments and suggestions, which led to improving the article. This work
is an outcome of the “Blue Shipping & Cruise Lab”(BSCLab), Department of Law, University of Naples
Parthenope, Naples, Italy.
Funding:This work was fundedby University Parthenope,Naples, Italy, (No.DM737/2021) –Research
Financial Resources, “Ministero dell’Universit
a e della Ricerca con Decreto Ministeriale del 25.06.2021
n. 737 for research project entitled Transizione digitale per Modelli di Business Sostenibili e Resilienti
nell’interfaccianave-porto verso l’Agenda 2030 –P.I.Prof. Dr. Assunta Di Vaio”.
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1469-1930.htm
Received 2 May 2024
Revised 7 July 2024
12 July 2024
Accepted 12 July 2024
Journal of Intellectual Capital
Vol. 25 No. 7, 2024
pp. 54-86
Emerald Publishing Limited
1469-1930
DOI 10.1108/JIC-05-2024-0131
1. Introduction
Climate change is a global issue that requires firms to make major changes to improve their
ecological and social systems, as its effects, including extreme weather patterns, can be
disastrous. As part of the environment, firms are influenced by both climate change and
institutional pressure (Lebelhuber and Greiling, 2022). To limit the in crease in the global
temperature, the Paris Agreement forces firms to contribute to economic and social
transformations in terms of decarbonization. Realising the need for immediate climate action,
institutions are pressurising firms to implement short- and long-term decarbonization policies
(Linton et al.,2020). In this regard, theinstitutionaltheory is idealisedto explain and theorise the
idea of decarbonization using new technologies and renewable resources (Schildt, 2022).
Firms face institutional and stakeholder pressures to adopt effective decarbonization
practices to respond to the social and environmental aspects of sustainability (Grecu, 2023).
Focusingon intellectual capital (IC),effective decarbonizationpractices, includingthe adoption
of green technology and renewable resource to mitigate carbon emissions, depend on the
operationalprocesses of firms.Thus, to increase their effectivenessin the use of technologiesas
enablers of decarbonization, firms can take advantage of IC components, namely human,
structural, and relational capital, as essential sources of economic growth towards the
transformation of a low-carbon environment and sustainable development (Goklany, 2007;
Kornilovaand Klymenko, 2014). Therefore,firms must utilise theircapital resources to acquire
technologicalinnovation and obtaina competitive edge (Xiaoand Yu, 2020) without neglecting
the IC components, which contribute to long-term value creation. This is essential for
sustainabilityin advancing decent workand economic growth (SustainableDevelopment Goal
[SDG] 8), in accordance with the United Nations (UN) 2030 Agenda(Ali and Anwar, 2021).
Similarly, some scholars define IC as a collection of skills and experiences held by
employees that may yield long-term financial gains for firms (Alvino et al., 2020). Therefore, to
decarbonize, the operations of firms must depend on new technologies, renewable resources,
and IC, especially structural and human capital, which can support an eco-friendly climate,
decent work, and economic growth (SDG8). On the other hand, changes in operational
processes due to decarbonization from technology affect productivity from innovation,
gender, people with disabilities involved in operational processes, training, and the safety and
security of working environments for all workers, that is, SDG8-Targets 8.2, 8.5, 8.6, and 8.8.
GreenIC (GIC), which encompassesknowledge, experience,and intellectual propertyrelated
to environmentally sustainablepractices can playa pivotal role in achievingSDG8 by fostering
innovation that leads to sustainable economic growth and decent work. For instance, the
developmentand application of greentechnologies and sustainablebusiness models can create
new employment and enhance operational efficiency, thereby contributing to the economic
growth aspectof the SDG (Astuti et al.,2022;Weiet al.,2023). However, the pursuit of economic
growth,as traditionally measured,may conflict with environmental sustainability. Advocating
for a frameworkthat ensures welfare provisioningindependent of growth, Kreininand Aigner
(2022) proposed the concept of “sustainable work and economic growth”, which suggests a
revaluationof the dependence on economicgrowth. This highlightsthe need for GIC to support
growth and redefine it in a manner that aligns with strong sustainability principles.
Both institutional change and the advancement of low-carbon technologies are
significantly influenced by human capital development. As human capital accumulates,
individuals adopt energy-efficient technologies that improve firm efficiency and lower carbon
emissions. Theoretically, increasi ng human capital levels may promote institu tional
innovation and technological advancement in the structure and efficiency of firms, which
would reduce carbon emissions and thus promote SDG8 and its targets [2, 5, 6, 8] (Zhang et al.,
2023). To lessen detrimental effects on the environment, firms can manage their plans and
create business models in accordance with environmental regulations by incorporating IC (Di
Vaio et al., 2024a). Furthermore, the growing concern of institutions and stakeholders has
Journal of
Intellectual
Capital
55
encouraged firms to adopt carbon accounting as a managerial accounting tool to measure
their carbon performance (Gibassier and Schaltegger, 2015). However, the idea of
transparency has changed over the past few decades, shifting from a more accountability-
focused perspective to one that is more inclusive and includes an increasing emphasis on
sustainable performance. Therefore, to maintain sustainability, firms must extend their scope
of accountability to include stakeholders’needs and expectations (Gran
aet al., 2024).
Regarding the sustainable performance of firms, more than 10 years ago, Stechemesser
and Guenther (2012) clarified that efforts to incorporate climate change mitigation into
accounting procedures are referred to as carbon accounting. Through carbon accounting,
effective structural capital makes it easier for firms to gather, process, and report carbon
emission data in a systematic ma nner while maintaining accur acy and regulatory
compliance. This infrastructure consists of cutting-edge information technologies that
facilitate smooth data flow and real-time monitoring by integrating carbon accounting into
larger financial and operational frameworks (Mahmood and Mubarik, 2020). In addition, the
carbon accounting process is streamlined by well-established internal rules and processes,
which lower implementation hurdles and improve firm readiness (Schaltegger and Csutora,
2012). Human capital may effectively manage carbon accounting procedures using training
programmes and knowledge repositories, which are essential parts of structural capital
(Amores-Salvad
oet al., 2021). According to Mahajan et al. (2023), the consistent application of
the stakeholder theory fosters sustainability reporting, precise decision-making,
conscientious strategy adoption regarding sustainable performance, and technological
adoption that protect stakeholder validity. In this regard, the resource-based view (RBV)
theory focuses on examining the resources owned by firms (Hsu and Wang, 2012).
The UN 2030 Agenda strongly supports social rights, including zero hunger, clean water,
gender equality, and maintaining a decent work environment for all employees (Kaan et al.,
2014). This study focuses on SDG8, which calls for decent work, that is, safe and secure
working environments for all workers, education, or training on technological upgrading
without gender diversity, including persons with disabilities (SDG8-Targets 8.[2, 5, 6, 8]). The
necessity of addressing the different and varied experiences in the workplace is
acknowledged in the International Labour Organization’s (ILO) fundamental standards:
To promote decent and productive work for women and men in conditions of freedom, equity,
security and human dignity. All workers have the right to decent work, notonly those working in the
formal economy, but also the self-employed, casual, and informal economy workers, as well as those,
predominantly women, working in the care economy and private households. (ILO, 2012, p. V).
To achieve SDG8-Targets 8.[2, 5, 6, 8], firms can establish partnerships to obtain resources
and expertise. This aligns with the UN 2030 Agenda and SDG17-Target 17.G, which
emphasises collaboration through multi-stakeholder partnerships for sharing knowledge,
expertise, technology, and financial resources to achieve the SDGs, particularly SDG8-
Targets 8.[2, 5, 6, 8] in this study (Linton et al., 2020). However, the transformation towards
decarbonisation to solve the problems of climate change has been controversial (Smith, 2010).
In addition, this transformation requires major investment, and partnerships between
governments, non-governmental organisations (NGOs), for-profit organizations, and not-for-
profit organisations play a key role in sustainable development (Shahbaz et al., 2020).
Previous studies have rarely addressed the relationship between IC and the adoption of
decarbonization processes for achieving SDG8-Targets 8.[2, 5, 6, 8]. Carbon accounting is
useful for providing information on the processes and structural and human capital to ensure
the balance between profit, environmental concerns, and social goals, and between IC
components (i.e. relational capital, decarbonisation, and SDG17-Target 17.G). Thus, this
study examined the linkages between these issues on the basis of institutional, RBV, and
stakeholder theories. These theories highlight that firms agree on a social contract between
JIC
25,7
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