Carbon Accounting for Cultural Change: An Ethnographic Case Study of an Italian Municipally Owned Corporation

Climate change, as a pressing global challenge, compels organizations to address environmental issues by innovating their management and accounting models to align with sustainability goals. Carbon accounting has become essential for quantifying and reducing greenhouse gas emissions. However, research on how organizations leverage carbon accounting to drive cultural and organizational change remains limited. This study examines the potential of carbon footprint analysis to drive organizational changes necessary for a sustainable transition within a municipally owned corporation in Italy, responsible for urban waste collection and management. Municipally owned corporations, established and operated by local governments to manage public services, often face resistance to change as they navigate the balance between public accountability and operational efficiency. Using an integrated research framework, this study explores how carbon footprint analysis serves as a practical tool for embedding sustainability practices and fostering cultural change. Employing an ethnographic case study methodology, findings reveal that carbon footprint measurement extends beyond its technical function, acting as a cultural and social mechanism that reshapes organizational dynamics and individual behavior. Furthermore, while carbon accounting raises environmental awareness, its effectiveness in driving cultural transformation depends on top management commitment, active employee participation, and targeted training programs to enhance environmental knowledge.