The challenges of sustainability accounting and possible ways to overcome them

Abstract

Sustainability accounting is a form of accounting that involves using accounting techniques to measure, analyze, and report on an organization's economic, social, and environmental performance. However, organizations often face barriers that restrain their progress when integrating sustainability into their accounting processes. Exploring and identifying these challenges is crucial for developing effective strategies to overcome them. Hence, this research aims to identify and deeply explore the challenges associated with the implementation of sustainability accounting in organizations. It also seeks to support organizations in effectively implementing sustainability accounting, which enhances the implementation of sustainable practices. In order to achieve the research aim, the abductive approach is adopted throughout this study to explore the challenges faced by organizations when implementing sustainability accounting practices and identify potential strategies to overcome these challenges. The qualitative approach is used to address the research problem and to answer the research questions. The data collected from the interviews is then analyzed using thematic analysis to identify patterns and themes. This study contributes vastly to the field of sustainability accounting by identifying and addressing the main challenges faced by organizations when implementing sustainability accounting practices. The findings highlight that no obstacle for the implementation of sustainability accounting is too hard to overcome. The study has successfully revealed that the lack of proper infrastructure, skills, data collection and analysis issues and unwillingness to change, hinder the implementation of sustainability accounting. The research also identified solutions to these obstacles, such as standardizing practices and procedures within the organization, investment in infrastructure and engagement with stakeholders, suggesting that sustainability accounting can be implemented successfully in organizations.