Management accountants must be prepared to implement new reporting tools, techniques, and practices to meet UN Sustainable Development Goals (SDGs) and cope with related reporting challenges.
Led by Matteo Molinari, a senior lecturer in accounting and finance at the University of Roehampton, UK, this research delves into the significant contributions of management accountants within a prominent Italian multi-utility company towards the reporting and management of two critical SDGs: Goal 7 (Affordable and Clean Energy) and Goal 13 (Climate Action). These goals are of paramount importance for companies operating in environmentally sensitive sectors.
Research study overview
The study sheds light on the adoption of management accounting and control practices aimed at aligning the activities of organisations with stakeholder expectations, thereby aiding in overcoming the challenges associated with sustainability reporting. It introduces a comprehensive seven-step cycle that management accountants can follow to effectively address and navigate the intricacies of SDG reporting, alongside illustrating examples of key performance indicators (KPIs) pertinent to the two SDGs.
The evolving role of management accountants
Through a detailed exploration of management accounting and control practices, this study contributes valuable insights into the strategic implementation of SDG reporting and the evolving role of management accountants as key players in achieving sustainable development.
The findings of the study reveal a ‘hybrid’, dynamic, and context-based perspective on the roles of management accountants. They are portrayed as pivotal figures in both ‘bean counting’ and ‘business advocate’ activities, depending on their positioning within organisational teams and their influence on the decision-making process.