Sustainability Accounting Research Articles

Public spending and green finance: A systematic literature review

The public sector is being urged to actively participate in sustainability challenges more than ever before. In response, we present a systematic literature review on sustainable finance in European public administrations, particularly environmental aspects. This paper provides a systematic literature review on sustainable finance in European public administrations. It analyzes 82 papers published between 1992 and 2022, identifying areas of investigation such as sustainable development planning, sustainability accounting, measurement tools, and public-private partnerships. Further research is needed in green finance, particularly in financing methods.

Pelatihan Pemanfaatan Aplikasi Qasir Pada UMKM Zulichcare Dan Bon’s Laundry Demi Meningkatkan Pencatatan Akuntansi

The economic sector plays a key role in the well-being of the Indonesian society. The increasingly competitive economic growth poses challenges for Micro, Small, and Medium Enterprises (MSMEs) in recording financial transactions. This research aims to engage business practitioners in adapting to the development of digital technology through training on the usage of the Qasir Point of Sales application. This application is designed to facilitate business owners who want to manage their businesses digitally more easily. The research methodology involves three stages: preparation, including an in-depth analysis of the specific needs of MSMEs related to accounting and the use of the Qasir application; implementation, with direct assistance in creating and configuring the Qasir application to ensure alignment with the specific business needs of the two MSMEs; and evaluation, ensuring a good understanding and measuring the impact of the training. The conclusion emphasizes the success of the training and the importance of continuous adaptation to technological and business developments. It is expected that this will have a positive impact in supporting efficient and sustainable accounting records in UMKM Zulich Clean and Care and Bon’s Laundry.

Exploration of Sustainability Accounting Practices in Small and Medium Enterprises in Bali Province, Indonesia

This research aims to explore sustainability accounting practices in small and medium enterprises (SMEs) in Bali Province, Indonesia. Exploration of these practices is seen from the perspective of institutional issues, regulatory environment, social issues and environmental issues. The research sample was 397 SMEs in Bali Province, Indonesia selected using simple random sampling. Questionnaires were sent to SMEs (CEO/director/financial manager/accounting). Analysis was carried out using descriptive statistics with SPSS 25 software. Research findings show that awareness of sustainability reporting among SMEs in Bali Province is still low. SMEs have not published sustainability reports, despite being very reactive in accepting and introducing sustainability measures. The biggest obstacle to implementing sustainability accounting practices is a lack of understanding or information about the risks/benefits of sustainability. This research provides implications for the need to educate SMEs with sustainability knowledge and create a new approach to sustainability reporting, specifically developed for SMEs according to the organizational context. This research has limitations because it was only conducted in the context of a developing country, in Bali Province, Indonesia, thereby limiting the understanding of sustainability accounting practices in SMEs. This study used a limited sample with a usable response rate of 17.94% which limits the findings of this study. This research contributes to the sustainability accounting literature by diagnosing gaps related to sustainability reporting practices in SMEs. This research is the first attempt to explore sustainability accounting practices in the context of developing countries, especially SMEs in Bali Province, Indonesia.

Sustainability management accounting – enabling macro-level sustainability transformation towards the United Nations Sustainable Development Goals

Purpose Business has a critical part to play in transforming the global economy and society to achieve sustainable development. Many granular sustainability accounting and management tools have been offered. To systematize these piecemeal developments, this paper aims to develop a framework for analysis of the potential role of sustainability management accounting (SMA). The key challenge addressed is how SMA could be extended to support future-oriented, long-term, pro-active management of multiple issues to contribute towards strong sustainable development at the macro-economy level. Design/methodology/approach This conceptual paper examines SMA within a multi-level, context-action-transformation framework which can move organizations and society towards sustainability. Based on normative stakeholder theory, including concern for mainstreaming marginalized stakeholders, the paper discusses the role of SMA and how it can contribute necessary information to sustainable development of the company and beyond its boundaries. Findings Guided by a SMA framework linking context, action and transformation and normative stakeholder theory, which considers all stakeholders, the paper shows how the present lack of progress towards macro-level sustainable development can be addressed. This requires a focus on measuring and assessing positive impacts and forward-looking, long-term and proactive management of multiple sustainability issues as typified by the Sustainable Development Goals (SDGs). Practical implications The paper distinguishes between two aspects of SMA – a focus on reducing unsustainability and a focus on transformations towards sustainability. It is observed that there is insufficient emphasis on the latter at present if SMA is to provide comprehensive support to achieving the SDGs. A set of supportive tools is presented as a guide to practice and future developments. Originality/value The paper considers how SMA can enable and support transformations towards sustainability at the macro- and meso-level. Different transformational challenges and opportunities are discussed. In particular, the need to balance consideration of time, proactivity and multiplicity, as highlighted in the SDGs, is identified as the central way forward for SMA.

The Impact of Sustainability Accounting on Financial Reporting Quality: Evidence from the Pharmaceutical and Chemical Sectors on the ASE

The Impact of Sustainability Accounting on Financial Reporting Quality: Evidence from the Pharmaceutical and Chemical Sectors on the ASE

ACCOUNTING, CULTURE, AND HINDUISM: A NARRATIVE REVIEW

This research aims to analyze and understand the relationship between accounting and Balinese Hindu culture through a descriptive qualitative approach using the narrative review method. This research method is used to explore phenomena that occur in the context of Balinese Hindu culture with a focus on accounting practices. The results of data analysis show that the relationship between accounting and Balinese Hindu culture influences each other. Balinese Hindu culture that is rich with traditions, rites, and spiritual values has a significant impact on the accounting practices that exist within its society. Accounting practices in Balinese Hindu culture reflect the beliefs and values of the community, such as the concepts of justice, ethics, and social responsibility. The novelty of this research lies in providing a better understanding of the influence of Balinese Hindu culture on accounting practices, so that it can be used as a basis for the development of more contextualized and sustainable accounting theories and practices within the culture.

Taking shape within the structural and the personal: sustainability accountability within a Swedish public sector organisation

PurposeThis paper aims to better understand how accountability for sustainability takes shape within organisations and specifically, what makes employees act in a Swedish local authority. This aim moves beyond the prevalent external face of accountability in social and environmental accounting research by observing how employees understand and act upon their multiple accountability demands.Design/methodology/approachThis paper adopts a single case study approach within a Swedish local authority, drawing from qualitative data including semi-structured interviews, site visits and governing documents.FindingsSustainable action is not only the product of hierarchically enforced structural accountabilities and procedures but often must be reconciled with the personal perspectives of the public sector employees involved as part of an accountability dynamic. Additionally, the findings reveal that hierarchical accountability, rather than serving to individualise and isolate employees, acts as a prompt for the more practical and personal reconciliations of accountability with the ethics and experiences of the individual involved.Practical implicationsGreater consideration to employee socialisation processes in public sector organisations should be given to reinforce organisational governance systems and controls, and thus help ensure sustainable behaviour in practice.Social implicationsEmployee socialisation processes are important for the development of sustainable practices both within and beyond organisational boundaries.Originality/valueThis study considers the interrelatedness of hierarchical and socialising accountability measures and contributes towards the understanding of the relationship between these two accountability forms, contrary to previous understandings that emphasise their contrasting nature and incompatibility.

New boundaries for sustainability accounting? A case study of multi-entity accounting and reporting in the agrifood sector

PurposeThis study examines how accounting tools and techniques are used to create and support membership and reporting boundaries for a multi-entity sustainability scheme. It also considers whether boundary setting for this initiative helps to connect corporate activity with planetary boundaries and the SDGs.Design/methodology/approachA case study of a national agrifood sustainability scheme, analysing extensive documentary data and multi-entity sustainability reports. The concept of partial organising is used to frame the analysis.FindingsAccounting, in the form of planning, verification, target setting, annual review and reporting, can be used to create a membership and a reporting boundary. Accounting tools and techniques support the scheme's standard-setting and monitoring elements. The study demonstrates that the scheme offers innovation in how sustainability reporting is managed. However, it does not currently provide a cumulative assessment of the effect of the sector's activity on ecological carrying capacity or connect this activity to global sustainability indicators.Research limitations/implicationsFuture research can build on this study's insights to further develop our understanding of multi-entity sustainability reporting and accounting's role in organising for sustainability. The authors identify several research avenues including: boundary setting in ecologically significant sectors, integrating global sustainability indicators at sectoral and organisational levels, sustainability controls in multi-entity settings and the potential of multi-entity reporting to provide substantive disclosure.Originality/valueThis paper provides insight into accounting's role in boundary setting for a multi-entity sustainability initiative. It adds to our understanding of the potential of a multi-entity reporting boundary to support connected measurement between corporate activity and global sustainability indicators. It builds on work on partial organising and provides insight into how accounting can support this form of organising for sustainability.

Editorial letter. Sustainability accounting, accountability and disclosure in a Circular Economy

Editorial letter. Sustainability accounting, accountability and disclosure in a Circular Economy

Evaluation and Analysis of Brawijaya University Sustainability Report Based on GRI Standards

One of the derivatives of the practice of sustainability accounting is disclosing financial information, social information and environmental information in the form of a sustainability report. This study aims to evaluate sustainability reports at the university level based on the GRI Standards. This study uses a qualitative paradigm with data collection techniques using observation and document analysis. To analyze sustainability reports, this study used GRI Standards 2016. The results of this study concluded that the level of adherence to sustainability reports at Universitas Brawijaya was categorized as Well Applied because it was able to disclose GRI Standard indicators with a total disclosure of 86.03%. This result can be interpreted that the public sector, especially universities, has a very good ability to apply the concept of sustainability and can adopt the standard GRI in preparing its sustainability reports.

Construction of The Accountant's Role As A Sustainability Score Player Through A Participatory Action Research Approach

Purpose — This study aims to construct the role of accountants as sustainability score players, namely as providers of information, support, and guidance in embedding sustainable business practices in MSMEs. Design/methodology/approach—This study uses a participatory action research (PAR) approach to construct the role of accountants. This approach requires the active participation of participants in each stage of the PAR cycle, starting from planning, action, observation and evaluation, and reflection. Data were collected through observation, interviews, and FGD. The data is processed by thematic analysis after going through the triangulation process to check its validity. Findings—Accountants can expand their role by acting as sustainability score players through inclusion, providing literacy, and initiating MSMEs to start sustainable business practices. Through this involvement, accountants can realize that they can position themselves as agents of change who can become role models and mediators and facilitate the movement towards sustainable business for the MSMEs they assist. Practical implications—Accountants must develop a new habitus that shows they can contribute significantly to realizing sustainable development goals. One habitus is getting used to being involved with the community, especially with MSMEs. “Engage” represents the ability of accountants to actively participate in any embedded sustainability efforts. Originality/value—The gap between value and action in sustainability accounting research shows no relationship between values derived from existing theory and practical action. This research fills this gap by using an action research approach and involving educator accountants to determine what actions need to be taken to contribute to achieving sustainable development goals.

Unlocking the link between company attributes and sustainability accounting in shanghai: firm traits driving corporate transparency and stakeholder responsiveness

Sustainability accounting is crucial for corporate transparency and responsibility, but its relationship with firm characteristics in Shanghai, China’s financial center, remains poorly understood. This study uses a descriptive-analytical methodology to examine the impact of firm size, industry type, and profitability on sustainability accounting practices. A systematic literature review and meta-analysis of 43 studies provide insights into the extent and drivers of sustainability reporting. The findings reveal a positive association between firm size (r = 0.389) and profitability (r = 0.327) with sustainability reporting. Larger, more profitable firms, including state-owned enterprises, exhibit extensive sustainability accounting practices. However, the effect of industry type is inconclusive (r = 0.061), indicating a contingent relationship dependent on firm-specific contexts. The study suggests implementing regulations mandating minimum sustainability disclosure for large and profitable enterprises. Capacity-building initiatives for small private firms and the adoption of integrated reporting policies can enhance transparency. These outcomes contribute contemporary insights into corporate sustainability accounting in China’s evolving landscape. The implications extend to policy development and collaborative efforts to expand sustainability measurement and disclosure in Shanghai. Tailoring regulatory initiatives to firm profiles, such as size and profitability, enhances sustainability accounting practices. Targeted capacity-building programs, assurance mandates, and integrated reporting regulations improve the quality and usefulness of sustainability accounting information. Collaboration with the investor community is crucial for mainstreaming sustainability measurement and disclosure. This study deepens the understanding of sustainability accounting practices in Shanghai, an emerging economy financial hub. It provides insights for policy development, emphasizing firm and sector-specific factors driving sustainability accounting. Policymakers can promote transparency and responsibility by considering firms’ unique characteristics, fostering a more sustainable business environment.

Promoting sustainable learning among accounting students: evidence from field experimental design

PurposeSeveral studies have attempted to explain the integration of sustainable development in business school curricula. However, little is known about who (male students vs female students), at which age (under 21, 21–25 and 26–30) and at which stage of their undergraduate education (freshman, junior or senior) can attain and retain an adequate understanding of sustainability in accounting education. For this reason, the present study aims to investigate the students' interest in sustainability in accounting with respect to their demographic factors.Design/methodology/approachThe study used a quantitative research design where data were collected at a single point in time. Further, an independent sample t-test, one-way ANOVA and factorial design were performed on 132 responses conveniently collected from accounting students in the College of Business Administration (COBA) at Prince Mohammad Bin Fahd University (PMU) in Al Khobar, Saudi Arabia.FindingsThe study found no differences between the attitudes of male and female students toward sustainability in accounting education. Similarly, no statistical differences were found in the three age categories identified in this study. However, significant results were found throughout the different academic classifications (seniority): freshman students, junior students and senior students. Further, differences in the mean scores for freshman and junior accounting students were different between the male and female students, indicating that both male and female senior students' attitudes toward sustainability in accounting education were higher than those of male and female freshman and junior accounting students. The study concluded that students achieve an adequate understanding of sustainability in accounting education related to the relativism category of the Perry model of intellectual development.Originality/valueLiterature on attitude of students toward sustainability in education, specifically accounting education, is questionable and needs further exploration. This is due to the fact that only a small number of accounting students have been exposed to sustainable accounting education. Similarly, a recent study found a significant deficiency in sustainable accounting education in four Saudi Arabian universities, with only 4.5% of respondents knowing the comprehensive definition of sustainable development and 88% respondents having very low to low familiarity with the term sustainability.

Modified assessment methodology ESG competitiveness of enterprises to a new generation of investors

The article substantiates the expediency of modifying the methodology for assessing business competitiveness in the context of accelerated global ESG integration. The authors propose a system of criteria for assessing the competitiveness of enterprises, taking into account the requirements of the EU Taxonomy, Regulation (EU) 2020/852, the CSRD, and stakeholder requests for information support for assessing ESG risks and ESG competitiveness of enterprises. This system of criteria is based on a cognitive approach. Thanks to the use of modeling and information tools, it is based on a lateral understanding of the clarity of the distinction between the criteria and sub-criteria for assessing the ESG competitiveness indicator and its components. The introduction of a system of criteria for assessing the competitiveness of enterprises will ensure obtaining realistic results and making informed decisions to strengthen the competitive advantages of enterprises for a new generation of “conscious investors”. The author’s own methodology for integral assessment of ESG competitiveness of metallurgical enterprises is proposed. This methodology is based on the synthesis of integral and reference approaches to assessing the homeostasis of competitiveness. It is adapted to the information support of the Management Report prepared in accordance with the GRI (Global Reporting Initiative) and SASB (Sustainability Accounting Standards Board) standards. Its peculiarity is the assessment based on the extended homeostatic plateau of the dynamic system for determining the thresholds of the optimality of the ESG competitiveness indicator of enterprises. This should become the basis for ESG rating and the fundamental basis for determining strategic imperatives for managing the competitiveness of enterprises in the context of global ESG integration.

Akuntansi Berkelanjutan: Implementasi Standar Pelaporan Keberlanjutan dalam Praktik Bisnis CV. Utami

This article explores the implementation of sustainability reporting standards in the business practices of CV. Utami, a small and medium-sized company in the local service sector. Involving a case study, this research explores CV Utami's journey in integrating sustainable accounting practices in their operations. The results show the company's increasing awareness of sustainability issues and their impact on society and the environment. Through interviews, document analysis, and field observations, this article identifies the concrete steps taken by CV Utami in implementing sustainable accounting practices. The company successfully applies sustainability reporting standards such as the Global Reporting Initiative (GRI) as the main framework in measuring and reporting their sustainability performance. The benefits of sustainable accounting practices, including improved corporate reputation, attractiveness to social and environmental investors, and enhanced ability to manage sustainability risks, are also discussed. In addition, the challenges faced by CV Utami in terms of allocation of limited financial and human resources. The importance of engagement with external parties such as local government, non-governmental organisations, and local communities in the context of sustainable accounting is also emphasised. This article shows how external partnerships can broaden a company's view of social and environmental responsibility and provide tangible benefits in facing sustainability challenges. Through the case study of CV Utami, this article provides insights into how small and medium-sized enterprises can play a significant role in driving positive change towards more sustainable businesses. Awareness, commitment and co-operation with external parties form the basis for successful implementation of sustainable accounting practices.

Profitability as a Moderator in the Implementation of Environmental Management Accounting for Corporate Sustainability

This study aims to examine the effect of implementing environmental management accounting on corporate sustainability moderated by company profitability in mining and manufacturing companies listed on the Indonesia Stock Exchange from 2019-2022. Environmental management accounting is measured by eco-efficiency, and company sustainability is measured by GRI standards using content analysis with a scoring approach in assessing environmental and social achievements. Profitability is measured by return on equity (ROE). This research uses a panel data method with a fixed effect model approach. The sampling technique was purposive sampling with the criteria of companies that publish annual reports, and disclose sustainability reporting successively during the 2019-2022 period so that a total of 33 companies were obtained. The research results show that there is a positive influence on the application of environmental management accounting on corporate sustainability strengthened by profitability as a moderator. The application of environmental management accounting can increase its influence on corporate sustainability when the company's profitability is high. This condition is expected to have an impact on achieving corporate sustainability by fulfilling economic, environmental, and social aspects by the triple bottom line concept as a pillar that can create a sustainable business.

How will AI text generation and processing impact sustainability reporting? Critical analysis, a conceptual framework and avenues for future research

PurposeThe ability of generative artificial intelligence (AI) tools such as ChatGPT to produce convincing, human-like text has major implications for the future of corporate reporting, including sustainability reporting. As the importance of sustainability reporting continues to grow, this study aims to critically analyse the benefits and pitfalls of automated text generation and processing.Design/methodology/approachThis study develops a conceptual framework to delineate the field, assess the implications and form the basis for the generation of research questions. This study uses Alvesson and Deetz’s critical framework, considering insight (a review of literature and practice in the field), critique (consideration of the influences on the production and use of non-financial information and the implications for assurers of such information) and transformative redefinition (considering the implications of generative AI for sustainability reporting and proposing a research agenda).FindingsThis study highlights the implications of generative AI for sustainability accounting, reporting, assurance and report usage, including the risk of AI facilitating greenwashing, and the importance of more research on the use of AI for these matters.Practical implicationsThe paper highlights to stakeholders the implications of AI for all aspects of sustainability reporting, including accounting, reporting, assurance and usage of reports.Social implicationsThe implications of AI need to be understood in society, which this paper facilitates.Originality/valueThis study critically analyses the potential use of AI for sustainability reporting, construct a conceptual framework to delineate the field and develop a research agenda.

Conventional Sustainability Accounting Standards – Essence and Perspectives

The implementation of the concept of sustainability accounting assumes the adoption of a conventional reporting framework to set guidelines for presenting and disclosing useful information for satisfying the information needs of stakeholders’ groups. The standards developed by the Sustainability Accounting Standards Board could be an adequate reporting framework for satisfying investors’ information needs. The challenges for accounting science and practice are related to presenting and disclosing qualitative information by conventional reporting framework, which should satisfy the information needs of stakeholders’ groups in accordance with companies’ sustainability policy.

LITERATURE REVIEW: THE EFFECT OF SUSTAINABILITY ACCOUNTING ON COMPANY PERFORMANCE

The focus of public attention in recent times has been on companies that have gone public. This can be seen from the economic, environmental and social performance provided by the Company. The environment accompanied by social responsibility is able to encourage performance and reduce the company's risks. This research aims to examine in literature the influence of sustainability accounting on the performance of companies listed on the Indonesian Stock Exchange. This research is descriptive research. This research uses secondary methods with a literature review. The data used is research data from several journals that are relevant to the research conducted. Research using the literature review model will discuss or summarize the thoughts obtained from the author's ideas through reviewing several documents on relevant topics. Based on the results of the literature review, it was found that sustainability accounting in the economic disclosure dimension has no influence on the economic performance of a company. The same thing also happens to the environmental disclosure dimension which has no influence on the company's economic performance. In fact, disclosure of social performance has no effect on financial performance. In this case financial performance is represented by return on Assets (ROA). The same thing happens if company performance is replaced with ROS (return on sales), but social disclosure has an effect on company performance as represented by the ROE variable.

Moral economy, performative materialism, and political rhetorics of sustainability accounting

Using the concepts of ‘moral economy’ and ‘performative materialism’ in a case study of a Sri Lankan bank that has received awards and commendations for its sustainability reports, this study explores and theorises moral contradictions of how sustainability is enacted in a corporate setting. Its specific empirical observation reveals how enacting sustainability involves four key elements: redefining corporate morality, mattering morality, objectifying morality through accountability, and valorising morality in a moral market. While attaching a new morality to corporate profits, these elements enable greenwashing to get institutionalised as a celebrated and rewarded business practice. This research contributes to critical accounting studies by empirically explaining how a new set of moral practices, objects, and markets are constructed in the name of sustainability reporting and by illustrating how the theoretical notions of moral economy and performative materialism can shed light on critiquing the ways sustainability reporting regimes are constructed.