Integrating Sustainability Accounting into Sustainable Financial Decision-Making to Enhance Corporate Value
Abstract
This study examined how sustainability accounting is integrated into financial decision-making and how the literature links this integration to corporate value creation. As stakeholder expectations and regulatory pressures intensify, firms increasingly face the need to connect ESG-related information with core financial choices rather than treating sustainability reporting as a parallel activity. The review aimed to synthesize recent evidence on drivers and barriers to adopting sustainability accounting and pathways through which sustainability accounting informs sustainable financial decisions. A qualitative literature review was conducted using peer-reviewed studies published between 2020 and 2025, and the selected materials were synthesized through thematic analysis to identify recurring patterns across contexts. The synthesis indicates that adoption is more advanced among large firms, particularly in developed markets, while SMEs and firms in emerging economies encounter persistent constraints, including limited resources, insufficient expertise, and fragmented or inconsistent reporting standards. Across studies, stronger governance arrangements, leadership commitment, stakeholder scrutiny, and regulatory requirements emerge as key enablers of integration. The reviewed literature suggests that when sustainability accounting is embedded into budgeting, investment appraisal, risk management, and performance evaluation, it improves decision usefulness by enhancing transparency, aligning incentives, and supporting a longer-term value orientation. This review contributes a structured integration lens and highlights practical implications for managers and policymakers seeking to strengthen SME capabilities and improve the comparability and usability of sustainability information.
Keywords: sustainability accounting, ESG reporting, financial decision-making, corporate value, corporate governance, SMEs, sustainable finance.
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