Accounting & Management
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- July–August 2024
- Article
Disclosing Downstream Emissions
By: Robert S. Kaplan and Karthik RamannaAn increasing number of companies are using the E-liability carbon-accounting method as an important tool for tracking progress toward reducing global emissions in their supply chains. The system does not require formal accounting for downstream emissions—those occurring after a company sells its products to immediate customers, for several good reasons. Certain companies, however, are accountable for disclosing downstream emissions generated by consumers’ use of their products. Three principles govern accountability: (1) Downstream accountability is limited to companies whose products are directly used by end customers. (2) Accountability for B2C companies is limited to cases where a reasonable causal link exists between product-design decisions and the downstream emissions generated by consumers. (3) Companies are accountable for disclosing emissions produced per unit of use, not for total emissions. This article presents the principles and explains how and to what standards of reliability the companies should disclose downstream emissions.
- July–August 2024
- Article
Disclosing Downstream Emissions
By: Robert S. Kaplan and Karthik RamannaAn increasing number of companies are using the E-liability carbon-accounting method as an important tool for tracking progress toward reducing global emissions in their supply chains. The system does not require formal accounting for downstream emissions—those occurring after a company sells its products to immediate customers, for several good...
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- June 2024
- Case
Climate Governance at Linde plc (A)
By: Lynn S. Paine, Suraj Srinivasan, Emilie Billaud and Vincent DessainIn July 2023, the Linde plc board of directors' sustainaibility committee convened in London to review the company's environmental performance, with a focus on decarbonization and clean energy. Linde was the world's largest industrial gas supplier, with a workforce of more than 65,000 , operations in over 100 countries, and annual revenue of some $33 billion. Two years earlier, the company had announced its "35 by 35" target, pledging to reduce its greenhouse gas emissions by 35% by 2035, with the aim of achieving climate neutrality by 2050. The company also committed to investing $50 billion in clean energy projects. The sustainability committee had to take stock of the company's progress and determine whether the previously announced goals should be retained or modified.
- June 2024
- Case
Climate Governance at Linde plc (A)
By: Lynn S. Paine, Suraj Srinivasan, Emilie Billaud and Vincent DessainIn July 2023, the Linde plc board of directors' sustainaibility committee convened in London to review the company's environmental performance, with a focus on decarbonization and clean energy. Linde was the world's largest industrial gas supplier, with a workforce of more than 65,000 , operations in over 100 countries, and annual revenue of some...
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- June 2024
- Case
Wemade: (Re)Establishing Trust in Blockchain Games (A)
By: Jung Koo Kang, Charles CY Wang, David Allen and Kwangmoon SoThis case explores the fundamental challenges and accounting issues arising from the integration of blockchain technology into traditional business models. It features Wemade, a South Korean online gaming company that has staked its future on blockchain-based games. These games are designed for players to explicitly earn cryptocurrency rewards, which can be converted into cash or in-game non-fungible tokens. At the heart of this venture is the exploration of trust—a critical element that blockchain technology promises to enhance through transparency, security, and decentralization. The launch of the MIR4 Global game on WEMIX, Wemade’s blockchain platform, turned the company from a minor force into a pioneer; within a few months of its release, the company’s market capitalization rose tenfold. However, operating in a developing regulatory environment, Wemade suffered a series of scandals that resulted in the undoing of almost all of its growth the following year: it failed to disclose that it had sold its WEMIX cryptocurrency to fund an ambitious mergers and acquisitions strategy; it misclassified WEMIX coin liquidation proceeds as revenue, leading to a restatement; and every major South Korean crypto exchange delisted its WEMIX coin, claiming inadequate disclosures about the coin by the company. How could Wemade’s chief executive, Chang Hyun-Guk, rebuild the trust that was lost? What lessons should he take away about the benefits and challenges of introducing blockchain technology and crypto to the business?
- June 2024
- Case
Wemade: (Re)Establishing Trust in Blockchain Games (A)
By: Jung Koo Kang, Charles CY Wang, David Allen and Kwangmoon SoThis case explores the fundamental challenges and accounting issues arising from the integration of blockchain technology into traditional business models. It features Wemade, a South Korean online gaming company that has staked its future on blockchain-based games. These games are designed for players to explicitly earn cryptocurrency rewards,...
About the Unit
The Accounting & Management unit at Harvard Business School strives to be the worldwide leader in research, course development, and teaching on top managements' use of performance measurement systems to:
- Communicate with external investors to ensure that their firms' securities are fairly priced and that they are able to access capital,
- Measure and evaluate their firms' economic performance,
- Improve resource allocation and strategy implementation within their firms, and
- Build accountability for performance through effective external and internal governance.
Unit research, course development, and teaching fall into two broad areas: Financial Reporting and Analysis and Management Accounting. Our research helps scholars and educators understand current best practices for the design and use of performance measurement systems that help managers to build more effective, value-creating organizations. Our teaching materials enable us to bring the results of this research into the classroom, and to practice.
Recent Publications
Disclosing Downstream Emissions
- July–August 2024 |
- Article |
- Harvard Business Review
Climate Governance at Linde plc (B)
- June 2024 |
- Supplement |
- Faculty Research
Climate Governance at Linde plc (A)
- June 2024 |
- Case |
- Faculty Research
Mass General Brigham’s Patient-Reported Outcomes Measurement System: A Decade of Learnings
- July 2024 |
- Article |
- NEJM Catalyst Innovations in Care Delivery
GameStop: Social Media Finds a Cheat Code – Instructor Template
- June 2024 |
- Supplement |
- Faculty Research
GameStop: Social Media Finds a Cheat Code – Student Template
- June 2024 |
- Supplement |
- Faculty Research
GameStop: Social Media Finds a Cheat Code
- June 2024 |
- Teaching Note |
- Faculty Research
Wemade: (Re)Establishing Trust in Blockchain Games (A)
- June 2024 |
- Case |
- Faculty Research
Harvard Business Publishing
Seminars & Conferences
There are no upcoming events.