Accounting and Corporate Sustainability: Evolution, Evidence, and Future Directions

This editorial commentary synthesizes conceptual frameworks and empirical research on environmental, social, and governance (ESG) reporting and integration, aiding us in better understanding the evolution of ESG and the inception of regulatory responses aspiring to advance ESG’s relevance and credibility, and how ESG improves firm value. We review a number of theories that explain the advancement and evolution of ESG, offering distinct insights into the drivers and consequences of corporate sustainability initiatives. Recent trends suggest a transition of ESG from a peripheral narrative element to a more integrated component of capital market operations. Within this landscape, there is a growing opportunity for accounting research to contribute to the development of robust measurement, verification, and assurance mechanisms for ESG-related disclosures.