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, namely, BASF, Deutsche Post DHL, Evonik Industries, Merck, and Vaude.
In particular, it examines how internal and external reporting and performance management contributes to the achievement of the United Nation’s Sustainable Development Goals.
The study reveals that management accountants and the accounting profession as a whole play a critical role in supporting sustainable development and the SDGs and that they are able to drive an organisation’s sustainability performance in six specific areas: internal and external reporting, investments, data management, carbon management accounting, and business enablement.
It also proposes a maturity model of corporate sustainability performance management and management accounting’s involvement. This model comprises four levels (1) external reporting, (2) strategic thinking, (3) company-wide integration and (4) business partnering.
The research found a strong link between the SDG’s and external reporting but that they play a less prominent role in internal reporting and sustainability strategy setting.
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 improve significantly compared to today.