Current Research Issues in

Accounting: Perspective
from Sustainability
Accounting
Putu Sukma Kurniawan
Accounting Department, Ganesha University of Education

Presented on International Webinar of Master Program in Accounting, December 2024

Curriculum Vitae

 Putu Sukma Kurniawan

 Accounting Department, Faculty of Economics, Ganesha University of
Education
 Research area: sustainability accounting implementation in private sector,
sustainability accounting practices in village-owned enterprises
 Latest research and publication: Sustainability reporting assurance practice
in Indonesia: assuror and academician perspective
(https://www.emerald.com/insight/content/doi/10.1108/arj-05-2023-
0132/full/html)
Why Sustainability Accounting?
 There is a paradigm shift in accounting: From conventional accounting to
sustainability accounting.
 Sustainability accounting focuses not only on financial aspects, but also social
and environmental aspects. It also focuses on the organisation's stakeholders in
a comprehensive manner.
 The new perspective: sustainability accounting is a “tool” for social welfare.
 The sustainability concept has a strong connection with social welfare
 Reference: On sustainability and social welfare
(https://www.sciencedirect.com/science/article/abs/pii/S0095069615000200)
 And also, sustainability accounting implementation can support a business
organization to achieve the SDGs indicators.
 Reference: Glocalizing sustainability: how accounting begins for sustainable
development goals in city administration
(https://www.emerald.com/insight/content/doi/10.1108/jpbafm-06-2023-
0097/full/html)
Why Sustainability Accounting is Crucial
and Important?
 Environmental Impact Measurement: Helps organizations quantify their
environmental footprint, tracks carbon emissions, resource consumption, and
waste generation, provides concrete data for understanding ecological
consequences of business operations.
 Transparency and Accountability: Enables stakeholders to assess a company's
environmental and social performance, increases organizational transparency,
holds businesses accountable for their sustainability commitments.
 Strategic Decision-Making: Provides data-driven insights for sustainable business
strategies, helps identify areas for improvement in environmental and social
practices, supports long-term strategic planning focused on sustainability.
 Financial Risk Management: Identifies potential environmental and social risks,
helps mitigate future financial liabilities related to environmental regulations,
supports more resilient business models.
 Investor and Stakeholder Expectations: Meets growing investor demands for ESG
(Environmental, Social, Governance) reporting, attracts socially responsible
investors, enhances corporate reputation and brand value.
 Regulatory Compliance Helps organizations meet increasingly stringent
environmental regulations, prepares businesses for future sustainability
legislation, reduces potential legal and financial penalties.
 Resource Efficiency: Identifies opportunities for cost savings through
resource optimization, encourages more efficient use of energy and
materials, supports circular economy principles.
 Competitive Advantage: Differentiates organizations in the marketplace,
demonstrates commitment to sustainable practices, attracts
environmentally conscious customers and employees.
 References:
 1. The evolution of sustainability accounting and reporting in the United
States: applications of the ecological anthropology and industrial ecology
frameworks (https://www.emerald.com/insight/content/doi/10.1108/jbsed-
03-2023-0020/full/html)
 2. Sustainability as the Source of Competitive Advantage. How Sustainable
is it? (https://www.emerald.com/insight/content/doi/10.1108/s1876-
066x20230000037005/full/html#ch05-lev1-5)
Why conduct research in sustainability
accounting area?
 Academic and Theoretical Development: Advance theoretical
understanding of sustainability accounting, develop new conceptual
frameworks, explore emerging methodological approaches, bridge gaps in
existing knowledge.
 Addressing Global Challenges: Contribute to solving environmental and
social issues, support sustainable development goals, develop solutions for
climate change mitigation, promote responsible business practices.
 Stakeholder Engagement: Understand diverse stakeholder perspectives,
develop more inclusive reporting approaches, improve communication
strategies, enhance transparency and accountability.
 Interdisciplinary Collaboration: Integrate knowledge from multiple
disciplines, encourage cross-sector research, promote holistic
understanding, foster innovative problem-solving approaches.
 Enabling Sustainable Development Goals (SDGs): The United Nations' Sustainable
Development Goals (SDGs) provide a global framework for businesses to align
their practices with social, economic, and environmental sustainability.
 Contributing to Ethical and Responsible Business Practices: Research in
sustainability accounting can contribute to shaping ethical business practices by
identifying ways companies can reduce their negative impacts on the
environment and society. It helps businesses balance profit-making with
responsible corporate citizenship.
 References:
 1. Corporate water management systems and incentives to self-discipline
(https://www.emerald.com/insight/content/doi/10.1108/sampj-09-2018-
0258/full/html)
 2. Strengthening accountability and sustainability reporting: does stakeholder
engagement really work? Evidence from the judicial sector
(https://www.emerald.com/insight/content/doi/10.1108/srj-05-2023-0248/full/html)
 3. Business contributions to the sustainable development goals through community
sustainability partnerships
(https://www.emerald.com/insight/content/doi/10.1108/sampj-03-2020-
0068/full/html)
 The Development of Research in
Sustainability Accounting
 Early Foundations (1970s - 1980s):
 1. Environmental and Social Issues Gain Attention: The 1970s and 1980s marked the
beginning of the sustainability accounting movement, with the first signs of
accounting research addressing environmental issues.
 2. Rise of Environmentalism: As environmental movements gained momentum in the
1970s, researchers began to explore how businesses could account for
environmental costs, often in relation to pollution control and environmental impact.
 Introduction of Sustainability in Business (1990s):
 1. Sustainability and Triple Bottom Line: In the 1990s, the concept of the "Triple Bottom
Line" (TBL), introduced by John Elkington, gained prominence. It called for businesses
to account not just for profits (economic) but also for their social and environmental
impacts.
 2. Sustainability Reporting Frameworks: Researchers began to examine the role of
sustainability reporting frameworks such as the Global Reporting Initiative (GRI),
launched in 1997, to standardize and guide the disclosure of non-financial
information related to environmental and social performance.
 Integration of Sustainability into Corporate Governance (2000s):
 1. Corporate Social Responsibility (CSR): The early 2000s saw an increased focus on
Corporate Social Responsibility (CSR) and its relationship to accounting. Scholars
began to investigate how firms could integrate social and environmental
considerations into their accounting practices.
 2. Sustainability Reporting Standards: By the early 2000s, the development of
sustainability reporting frameworks, such as the GRI's guidelines and the later
emergence of Integrated Reporting (IR), which combines financial and non-financial
reporting, became the focus of significant research.
 Development of Integrated and Holistic Frameworks (2010s - Present):
 1. Integration of Financial and Non-financial Information: In recent years,
sustainability accounting research has focused on integrating financial and non-
financial information to create a more holistic view of corporate performance.
 2. Materiality and Impact Measurement: Research has increasingly focused on
materiality—determining which sustainability factors are most relevant for different
stakeholders.
 3. Sustainable Development Goals (SDGs): The UN's adoption of the SDGs in 2015 has
spurred a new wave of research examining how businesses can align their strategies
with these global goals.
 4. Climate Change and Financial Disclosure: With the increasing urgency of climate
change, sustainability accounting research has become more focused on climate-
related disclosures.
 References:
 1. The pre-history of sustainability reporting: a constructivist reading
(https://www.emerald.com/insight/content/doi/10.1108/aaaj-03-2017-
2872/full/html)
 2. Sustainability Reporting: History and Development
(https://www.emerald.com/insight/content/doi/10.1108/978-1-80117-856-
320221003/full/html)
 3. Constructing a Research Field: A Reflection on the History of Social and
Environmental Accounting
(https://www.tandfonline.com/doi/full/10.1080/0969160X.2014.938472)
 4. Triple bottom line and sustainable performance measurement in industrial
companies (https://www.emerald.com/insight/content/doi/10.1108/rege-04-
2018-0065/full/html)
 5. The Role of Management Accountants Regarding Climate Change: The
Case of Turkey (https://www.emerald.com/insight/content/doi/10.1108/s2043-
052320230000020002/full/html)
 Current Research Issues in Sustainability
Accounting
 This topic describes the current research issues in sustainability accounting, particularly
in public sector organization (local government and public university) and small
business organization. To date, research on sustainability accounting has been
conducted primarily in the context of public companies and capital markets.
 It would be beneficial for future research to consider expanding the scope of
sustainability accounting to include additional organisational types, such as those in the
public sector organization and small business organization. A comprehensive
investigation of sustainability accounting in both public sector organisations and small
business enterprises will facilitate a more expansive understanding of this field.

Public
Public sector university
organization A future research in
sustainability
accounting
Small business
organization
Focus 1: Sustainability Accounting in Public
Sector Organization (Local Government)
 Comprehensive Performance Measurement: Expanding beyond financial
indicators, integrating social and environmental performance metrics,
developing holistic sustainability scorecards, creating multi-dimensional
evaluation approaches.
 Stakeholder Engagement: Designing participatory sustainability accounting
mechanisms, improving community involvement in reporting processes,
developing transparent communication strategies, creating inclusive
decision-making frameworks.
 Climate Change Adaptation: Developing climate-resilient accounting
frameworks, measuring carbon footprint and environmental impact,
creating adaptive sustainability strategies, integrating climate risk
assessment methodologies.
 Capacity Building: Training local government professionals, developing
sustainability accounting educational programs, creating knowledge
transfer mechanisms, enhancing organizational capabilities.
 Local governments are under increasing pressure to account for social,
environmental, and economic sustainability outcomes. However,
measuring non-financial performance in a robust and meaningful way
remains a challenge.
 Investigating methods for local governments to incorporate sustainability
risks into their financial planning and budgeting. This research may focus on
scenario analysis, risk assessments, and integrating climate resilience into
budgeting processes.
 Studying how local governments can communicate sustainability goals,
achievements, and challenges to the public. This includes understanding
the role of sustainability accounting in fostering public trust and
engagement in government decision-making.
 Developing frameworks for assessing local governments based on ESG
principles. How can local governments set and track ESG targets that
reflect their unique responsibilities and opportunities?
 References:
 1. Sustainability accounting, accountability and reporting in the public
sector: An overview and suggestions for future research
(https://www.emerald.com/insight/content/doi/10.1108/medar-08-2019-
510/full/html)
 2. The local government accountants’ perspective on sustainability
(https://www.emerald.com/insight/content/doi/10.1108/sampj-07-2014-
0043/full/html)
 3. Climate Change Accounting, Reporting and Accountability: Responses
by Governments, Not-for-Profit Organisations and Charities
(https://www.emeraldgrouppublishing.com/calls-for-papers/climate-
change-accounting-reporting-and-accountability-responses-governments-
not)
 4. Editorial: Climate change adaptation and mitigation measures at local
and national levels for sustainable development
(https://www.emerald.com/insight/content/doi/10.1108/ijccsm-11-2023-
218/full/html)
 5. Drivers of sustainability reporting by local governments over time: A
structured literature review
(https://onlinelibrary.wiley.com/doi/10.1111/faam.12407)
Focus 1: Sustainability Accounting in Public
Sector Organization (Public University)
 Integration of Sustainability Metrics into Financial Reporting: Research could
explore methods for aligning sustainability metrics with traditional financial
indicators to create a holistic view of a university’s performance.
 Measurement of Non-financial Performance: Research could focus on
creating metrics for environmental sustainability (carbon footprints, waste
management), social impact (student well-being, diversity, and inclusion),
and educational outcomes (accessibility, knowledge transfer to society).
 Sustainability in University Governance and Decision-Making: Investigating
how sustainability accounting can support better governance and
decision-making processes.
 Environmental Costing and Resource Management: Research could focus
on developing environmental cost accounting methods that help
universities track resource usage, energy consumption, waste production,
and associated environmental costs.
 Impact of Campus Sustainability Initiatives: Investigating the cost-benefit
analysis of campus sustainability initiatives.
 Sustainability Reporting and Transparency: Exploring how public universities
can develop and improve sustainability reports to meet the demands of
stakeholders.
 Sustainability in University Research and Teaching: Investigating how
universities can track and report on sustainability-related research outputs
and how sustainability concepts can be integrated into curricula.
 Sustainability Practice in Higher Education Institution: Please check UI
GreenMetric. (https://greenmetric.ui.ac.id/)
 References:
 1. Sustainability reporting, universities and global reporting initiative
applicability: a still open issue
(https://www.emerald.com/insight/content/doi/10.1108/sampj-05-2022-
0257/full/html)
 2. Antecedents of students' intention to be sustainable accountants:
evidence from Indonesia
(https://www.emerald.com/insight/content/doi/10.1108/agjsr-08-2023-
0366/full/html)
 3. Sustainability reporting on the websites of public and private universities
in Ghana (https://www.emerald.com/insight/content/doi/10.1108/ijshe-12-
2021-0509/full/html)
 4. How the UN SDGs Have Affected Sustainability Reporting Activity of
Spanish Public Universities?
(https://www.emerald.com/insight/content/doi/10.1108/s2043-
052320230000022009/full/html)
 5. Integrated reporting and change: evidence from public universities
(https://www.emerald.com/insight/content/doi/10.1108/jpbafm-08-2019-
0120/full/html)
 6. A survey of the most prevalent sustainability initiatives at universities
(https://www.emerald.com/insight/content/doi/10.1108/ijshe-07-2023-
0285/full/html)
 7. University rankings and sustainable development: the state of the art
(https://www.emerald.com/insight/content/doi/10.1108/ijshe-11-2023-
0530/full/html)
 8. Sustainability reporting, institutional pressures and universities: evidence
from the Spanish setting
(https://www.emerald.com/insight/content/doi/10.1108/sampj-07-2023-
0455/full/html)
 9. Incidence of sustainability in university performance: evidence of
stakeholders’ perceptions at Colombian private higher education
institutions (https://www.emerald.com/insight/content/doi/10.1108/ijshe-08-
2022-0264/full/html)
 10. Universities and Climate Change – Introducing Climate Change at
University Programmes
(https://www.emerald.com/insight/content/doi/10.1108/ijshe.2011.24912aa
e.001/full/html)
Focus 3: Sustainability Accounting in Small
Business Organization
 Integration of Sustainability into Traditional Accounting Frameworks:
Integrating sustainability indicators into these established frameworks
remains a significant challenge.
 Practical and Scalable Sustainability Metrics: Research could focus on
identifying key sustainability metrics that are both meaningful and
manageable for small organizations.
 Environmental Impact Assessment: Investigating how small businesses can
use sustainability accounting to measure their environmental impact
effectively.
 Social Responsibility and Community Engagement: Developing frameworks
for small businesses to track and report on their social impact, including
employee well-being.
 Sustainability Risk Management and Resilience: Research could investigate
how small businesses can incorporate sustainability risk management into
their accounting systems.
 Sustainability Reporting and Transparency: Research could examine the
potential for adopting internationally recognized standards (such as the
Global Reporting Initiative - GRI) in a simplified form or the development of
new guidelines that meet the needs of small businesses.
 Behavioral Factors and Organizational Culture: Research could focus on
how accounting and reporting practices can be used to influence business
owners’ and employees’ behaviors toward sustainability. This includes
understanding how leadership, values, and incentives can affect the
adoption and integration of sustainable practices.
 Supply Chain Sustainability and Ethical Sourcing: Investigating how small
businesses can use sustainability accounting to assess and manage supply
chain sustainability. This includes developing tools to track the sustainability
of suppliers, encourage ethical sourcing, and integrate supply chain
sustainability into the overall business strategy.
 References:
 1. Advancing Sustainability Reporting in SMEs: Challenges and
Opportunities in the Modern Landscape
(https://www.emeraldgrouppublishing.com/calls-for-papers/advancing-
sustainability-reporting-smes-challenges-and-opportunities-modern)
 2. Motivating small and medium-sized listed companies for better
Environmental, Social and Governance (ESG) reporting in Hong Kong
(https://www.emerald.com/insight/content/doi/10.1108/pap-05-2024-
0068/full/html)
 3. Accounting practitioners’ perspectives on small- and medium-sized
enterprises’ environmental sustainability reporting
(https://www.emerald.com/insight/content/doi/10.1108/jaar-08-2023-
0250/full/html)
 4. The implementation of sustainability reporting in a small and medium
enterprise and the emergence of integrated thinking
(https://www.emerald.com/insight/content/doi/10.1108/medar-02-2020-
0706/full/html?skipTracking=true)
Sustainability Accounting in the Digital Era?
 Integration of Digital Technologies in Sustainability Reporting: With the
advent of big data, blockchain, and artificial intelligence (AI), the way
sustainability data is collected, analyzed, and reported is changing. Future
research could explore how these technologies can improve the
sustainability reports.
 Data Analytics for Decision-Making: Leveraging data visualization tools to
make sustainability reports more user-friendly and actionable for investors,
regulators, and consumers.
 Impact of AI on the Evaluation of Corporate Sustainability: How AI-powered
analytics can offer deeper insights into corporate sustainability practices?
 Consumer Behavior and Sustainability Disclosure: How digital platforms
(social media, e-commerce, etc.) influence consumer demand for
sustainability-related disclosures?
 Digital Reporting Frameworks: Standardized digital sustainability reporting
protocols, interactive and dynamic sustainability dashboards.
 References:
 1. Factors influencing the digitalization of sustainability accounting,
reporting and disclosure: a systematic literature review
(https://www.emerald.com/insight/content/doi/10.1108/medar-02-2024-
2385/full/html)
 2. Exploring the impact of digital knowledge, integration and performance
on sustainable accounting, reporting and assurance
(https://www.emerald.com/insight/content/doi/10.1108/medar-02-2024-
2383/full/html)
 3. Technological Innovations for Business, Education and Sustainability
(https://www.emerald.com/insight/publication/doi/10.1108/9781837531066
)
 4. How will AI text generation and processing impact sustainability
reporting? Critical analysis, a conceptual framework and avenues for future
research (https://www.emerald.com/insight/content/doi/10.1108/sampj-02-
2023-0097/full/html)
 5. Can artificial intelligence produce a convincing accounting research
article? (https://www.emerald.com/insight/content/doi/10.1108/arj-04-
2023-0105/full/html)
Research Output: Sustainability Accounting
Practices in Village-Owned Enterprises
 This book describes how village-owned enterprises implement sustainability
concepts and practices. It also explains how the concept of local wisdom
guides the implementation of sustainability accounting in business
organisations.
 Title: Tri Hita Karana Dalam Implementasi Akuntansi Keberlanjutan Di BUM
Desa (Tri Hita Karana in the Implementation of Sustainability Accounting in
Village-Owned Enterprise)
 Link:
https://www.google.co.id/books/edition/Tri_Hita_Karana_Dalam_Implemen
tasi_Akunt/JFEeEQAAQBAJ?hl=id&gbpv=0
MATUR SUKSMA

TERIMA KASIH

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