ESG Accounting—The Principles and Principals to Be Served?
- 1 School of Management, New York Institute of Technology, Vancouver, Canada
- 2 School of Management, New York Institute of Technology, Vancouver, Canada
Abstract
This paper examines the evolving landscape of Environmental, Social, and Governance (ESG) accounting, focusing on the need for standardized practices and principles. Drawing on sustainability reports and accounting frameworks, it explores the challenges of qualitative ESG disclosures and the role of regulations and voluntary initiatives. The study analyzes global net-zero initiatives, discussing the complexities of carbon emission trading and estimating externalities. By evaluating a Canadian company’s sustainability report, the need for standardized metrics and data quality improvements is highlighted, addressing to the importance of valuation rather than just material verifiability. The paper calls for a re-evaluation of ESG accounting principles and proposes a research agenda to explore accountants’ evolving role in stakeholder engagement, opening up the question of accountants being the middlemen in serving potential rather only existing principals.
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