Carbon Cost Information Collection and Consolidation from an ESG Perspective: A Case Study of Kingfa
DOI:
https://doi.org/10.47604/ijfa.3985Keywords:
ESG, Carbon Cost Management, Carbon Information, Green and Low-CarbonAbstract
Purpose: To examine how carbon cost information is collected and consolidated from an Environmental, Social, and Governance (ESG) perspective, using Kingfa Science & Technology as a case study. Specifically, the study aims to address the fragmentation of carbon-related physical and financial data across corporate systems and to construct a practical framework for carbon cost classification, attribution, and consolidation, thereby supporting the "dual-carbon" goals and responding to external pressures such as the Carbon Border Adjustment Mechanism (CBAM).
Methodology: This study adopts a single-case study approach based on publicly available secondary data, including Kingfa's annual reports (2022–2025), sustainability reports (2022–2025), and the China Carbon Market Development Report (2025). Data analysis employs trend comparison to track the co-movement of green business expansion and carbon intensity changes, and monetary conversion estimation using market reference prices to bridge physical energy consumption data with financial cost information. The analysis covers Scope 1 (direct emissions) and Scope 2 (energy indirect emissions), with Scope 3 addressed qualitatively by materiality, since public reporting provides it only as an unverified group-level aggregate that cannot be attributed to a cost object.
Findings: The study reveals that Kingfa's carbon cost information is highly fragmented across ESG, energy, production, R&D, and financial systems, with no effective mapping between physical emission data and financial cost data. Three major gaps are identified: (1) inconsistent classification and accounting boundaries of carbon costs; (2) lack of mapping between physical and monetary data; and (3) unclear cost objects and cost drivers. To address these gaps, the study proposes a carbon cost collection and consolidation mechanism comprising: (a) a three-tier classification framework dividing carbon costs into carbon emission costs, carbon abatement costs, and carbon risk costs; (b) a tripartite "cost object–cost driver–responsibility center" consolidation structure that clarifies cost attribution, allocation basis, and accountable entities.
Unique Contribution to Theory, Practice and Policy: The proposed mechanism enhances the traceability and managerial relevance of carbon cost information, filling the research gap on front-end information collection and consolidation from an ESG perspective. For practice, it provides Kingfa and similar manufacturing enterprises with a structured approach to integrating fragmented carbon data into managerial decision-making. For policy, the study offers empirical insights for regulators and standard-setters to consider enterprise-level carbon cost accounting frameworks that align with both domestic "dual-carbon" targets and international mechanisms such as CBAM.
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Copyright (c) 2026 Sihong Chen, Chunqing Xie, Wenjie Yang
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