This study, conducted by a research team from CBS International Business School and Bochum University of Applied Science in Germany, analyses practices in corporate sustainability performance management and the role of management accounting at five multinational German corporations: BASF, Deutsche Post DHL, Evonik Industries, Merck, and Vaude.
In particular, it examines how internal and external reporting and performance management contribute to the achievement of the United Nations Sustainable Development Goals. The research found a strong link between the SDGs and external reporting but that they play a less prominent role in internal reporting and sustainability strategy setting.
The study reveals that management accountants and the accounting profession as a whole play a critical role in supporting sustainable development and the SDGs. They are crucial for driving an organisation’s sustainability performance in six specific areas:
Internal and external reporting
Investments
Data management
Carbon management accounting
Business enablement
It also proposes a maturity model of corporate sustainability performance management and management accounting’s involvement. This model comprises four levels:
External reporting
Strategic thinking
Company-wide integration
Business partnering
The findings suggest that, as a first step, companies need to define key performance indicators linked to their sustainability strategy.
Finally, if corporate sustainability performance management is to be successfully implemented, the quality and availability of sustainability data must significantly improve compared to where it is today.