Governance & Policy

Sustainability Accounting

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Definition

Sustainability accounting is the identification, measurement and reporting of an organisation's environmental and social impacts and dependencies — energy, emissions, water, waste, workforce and community outcomes — with the rigour applied to financial accounting: defined boundaries, consistent methods, internal controls and assurance. It spans management accounting uses (carbon and natural capital accounting for decisions) and external reporting (GHG inventories, ESG disclosures), professionalised through SASB, the IFRS Foundation's ISSB, and initiatives such as A4S.

References

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This reference provides supporting context for how “Sustainability Accounting” is defined and used.

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Overview

How it is used

The discipline structures ESG data systems, ISSB and CSRD implementation, carbon accounting, and the finance function's growing ownership of sustainability information.

Why it matters

Sustainability moves from narrative to number through accounting; without it, reporting is literature.