Sustainable Accounting: The Benefits and Challenges of its Implementation

Abstract

This thesis is centered around the idea that sustainability is a necessary component within the world. Environmental, social, and governance (ESG) factors are key components of analyzing sustainable practices. Although accountants have historically focused on financial reporting, they now have the added function of sustainable accounting as environmental implications are an area of concern for companies. A substantial component of this thesis centers around analyzing how ESG factors contribute to an organization’s financial performance. It also observes how comprehensive sustainability reports impact investor decisions and examines the challenges that auditors face when providing assurance for sustainability initiatives. Furthermore, it examines how governments encourage sustainability practices through incentive programs and highlights how emerging technologies such as blockchain and AI can improve the reporting of sustainability reports.