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Topic: Sustainability Reporting in Accounting: Overview and Structure

Sustainability reporting has become an increasingly important focus in the field of accounting. At its core, it involves the disclosure of a company's environmental, social, and governance (ESG) performance alongside traditional financial statements. These reports help stakeholders, such as investors, regulators, and the public, better understand how a company manages its social and environmental responsibilities (Du Toit, 2024; Benameur et al., 2024). In recent years, reporting frameworks like the Global Reporting Initiative (GRI), the European Union's Corporate Sustainability Reporting Directive (CSRD), and the IFRS's new S1/S2 standards have been developed to bring more consistency to these disclosures. While sustainability reporting is gaining global traction, ongoing research reveals standardization, comparability, and assurance challenges. This discussion summarizes current research trends in the field, followed by a look at key areas that researchers say still need further exploration.

Current Trends in Sustainability Reporting Research

A strong theme in recent literature is the shift from narrowly focused environmental disclosures to more comprehensive ESG reporting. Research by Du Toit (2024) and Benameur et al. (2024) points out that while many companies now include social and governance information, the standards used to report them remain inconsistent. The introduction of the IFRS S1 and S2 standards and the EU's ESRS is helping to address this, but companies and stakeholders are still grappling with how to apply them effectively. Another significant issue is comparability. Organizations follow different frameworks, such as GRI, ISSB, and ESRS, making it challenging to compare sustainability performance across companies or industries (Du Toit, 2024).

Another growing area of interest is sustainability assurance, which means that companies can give stakeholders confidence that their ESG disclosures are accurate. Hazaea et al. (2022) analyzed global trends in assurance practices and noted considerable variation in how companies verify their reports, which may affect stakeholder trust. In addition, studies have looked at how sustainability information affects financial decision-making. For example, Alshahrani et al. (2024) found that climate-related disclosures influence how investors and auditors evaluate risk, particularly regarding extreme weather or environmental liabilities. Wagenhofer (2024) further explored how intangible assets tied to sustainabilitylike brand reputation or resource efficiencyaffect long-term valuation. Lastly, several reviews, including those by de Oliveira et al. (2025) and Nasreen (2025), highlight a gap in research that focuses on social issues like gender diversity, Indigenous rights, and employee well-being. These areas remain underexplored compared to environmental topics.

Future Research Directions Identified by Scholars

While progress is being made, researchers consistently highlight areas where more work is needed. One of the most pressing needs is understanding how the new IFRS and ESRS standards are applied. Du Toit (2024) recommends studies examining how well these frameworks improve transparency, consistency, and accountability in ESG reporting. Similarly, Benameur et al. (2024) emphasize the need to understand better how companies engage stakeholders during the reporting process and whether this leads to more meaningful, trustworthy disclosures.

Sustainability assurance is also a key area for future research. Hazaea et al. (2022) suggest that more comparative studies are needed across countries to see how different types of assurance providers (e.g., accounting firms versus third-party certifiers) affect public trust in ESG reports. Alsharhrani et al. (2024) highlight the growing importance of understanding how companies report on extreme climate events and their associated risks. More research is needed on how such disclosures influence investor confidence, stock prices, and audit costs.

Finally, several researchers argue that the field needs to broaden its focus beyond environmental data. Nasreen (2025) calls for more qualitative and ethnographic studies that explore the human side of sustainability, such as the experiences of marginalized groups in the workplace. de Oliveira et al. (2025) also propose a new direction for accounting research: studying "accounts that matter"a concept that challenges researchers to examine how sustainability accounting can actively shape better business practices and decision-making. They recommend long-term case studies of companies using innovative accounting tools to track sustainable progress over time.

References

Alshahrani, F., Eulaiwi, B., Duong, L., & Taylor, G. (2024). Climate change disclosure performance and audit fees: Evidence from

australia. Sustainability Accounting, Management and Policy Journal (Print), https://doi.org/10.1108/SAMPJ-07-2023-0509

Links to an external site.

Benameur, K., Mostafa, M., Hassanein, A., Shariff, Z., & Al-Shattarat, W. (2024). Sustainability reporting scholarly research: A

bibliometric review and a future research agenda. Management Review Quarterly, 74(2), 823-866.

https://doi.org/10.1007/s11301-023-00319-7

Links to an external site.

de Oliveira, F. S., Neto, Octavio Ribeiro de Mendona, & Oyadomari, J. C. T. (2025). Accounts that matter: A systematic review of

accounting's role in integrating sustainability into organizational performance. The Irish Accounting Review, 34, 1-63.

https://doi.org/10.52399/001c.134047

Links to an external site.

Du Toit, E. (2024). Thirty years of sustainability reporting: Insights, gaps and an agenda for future research through a systematic

literature review. Sustainability, 16(23), 10750. https://doi.org/10.3390/su162310750

Links to an external site.

Hazaea, S. A., Zhu, J., Khatib, S. F. A., Bazhair, A. H., & Elamer, A. A. (2022). Sustainability assurance practices: A systematic review

and future research agenda. Environmental Science and Pollution Research International, 29(4), 4843-4864.

https://doi.org/10.1007/s11356-021-17359-9

Links to an external site.

Nasreen, T., Baker, R., & Rezania, D. (2025). Sustainability reporting - a systematic review of various dimensions, theoretical and

methodological underpinnings. Journal of Financial Reporting & Accounting, 23(3), 1057-1088.

https://doi.org/10.1108/JFRA-

Links to an external site.01-2022-0029

Links to an external site.

Wagenhofer, A. (2024). Sustainability reporting: A financial reporting perspective. Accounting in Europe, 21(1), 1-13.

https://doi.org/10.1080/17449480.2023.2218398