Module Directory

This module is designed to engage second-year undergraduates to acquire critical knowledge and understanding of the interplay between accounting practice and the notions of corporate social (and environmental) responsibility (CSR) and sustainable development. It will introduce students to relevant theories and practical implications of rapid development in sustainability accounting and reporting practices within contemporary corporations.

Over the past decade, it has been a global concern that firms’ prolonged pursuit of profitability and shareholder value maximisation has generated serious social problems (such as labour abuse, perilous working condition, employee mistreatment, human rights violation, and inequality) and environmental deterioration (such as greenhouse and toxic gas emissions, water and soil pollution, and global warming), which threaten long-term development of the economy, society, and the earth. Nowadays, social and environmental sustainability issues have drawn serious attention from governments, policymakers, corporate executives, NGOs, as well as accounting standards setters across the world. In addition, burgeoning social and environmental accounting research has offered numerous empirical evidence regarding the potential and actual roles of sustainability accounting and accountability in enabling businesses to achieve sustainable development.

This module will enhance students’ understanding of accounting and reporting as a socially constructed reality rather than merely technical practices. It will provide students with a framework so that they can place accounting studies into a sustainable development context. Students will be equipped with important knowledge, expertise, and techniques with respect to how the practices of accounting and corporate reporting process can play a significant part in leading contemporary corporations to implement impactful structural changes and renovate their business models to achieve social responsibility and environmental sustainability in the foreseeable future.

This module covers major issues in sustainability accounting and reporting practices, including the development of various sustainability reporting frameworks and standards, as well as the existing practice of accounting for climate change, biodiversity, and human rights. In addition, we also consider the external verification and assurance of sustainability reporting and its important impact on the corporate decision-making process, capital markets, and society at large.

The aims of this module are:

• To introduce students to the historical development of social and environmental accounting (and sustainability reporting) and their implications for achieving sustainable development goals.


• To provide students with a comprehensive understanding of the rapidly evolving area of sustainability accounting standards and reporting frameworks, as well as the developmental direction and potential challenges of sustainability accounting and reporting.


• To enable students to understand various theoretical perspectives that manifest the complexity, diversity, and multifaceted nature of both the internal changes and external effects of different forms of sustainability reporting processes.

By the end of this module, students will be expected to be able to:

1. Demonstrate a comprehensive knowledge of the relevant sustainability concepts and multiple theoretical understandings underlying the emergence and evolution of three pillars of sustainability accounting and accountability practices that emerged in different institutional and social contexts and apply these concepts and theories in critiquing the current development of sustainability reporting.


2. Critically evaluate the effectiveness of existing sustainability accounting frameworks, reporting standards, regulations, as well as relevant internal control mechanisms in transforming organisational decision-making toward achieving sustainable development goals (e.g., climate change, biodiversity, and human rights).


3. Identify and explain the interconnections, benefits, limitations, weaknesses, and challenges of current sustainability strategies and practices in achieving sustainable development.


4. Understanding the role of professional accountants in sustainability reporting and assurance.


5. Understanding the interactions between sustainability reporting and a wider range of stakeholders, including both shareholders and employees, customers, community, international organisations, government, NGOs, supply chain and the environment in holding profit-oriented business organisations to account for their social and environmental impacts and discharge accountability.

Transferable Skills:

• Critically analysing and dealing with challenging issues without complete information, flawlessly executing tasks and delivering results with a high level of accuracy.


• Clearly communicating complex problems, judgments, and potential solutions with greater detail to both specialists and non-specialists.


• Building confidence in working within a group or team, collaborating with professionals from various backgrounds, articulating ideas, and building crucial relationships.


• Cultivating integrity and ethical behaviour in any professional field by being well-versed in ethical standards and regulations.


• Adapting constantly evolving work environment with advancements in new technology and changes in regulations, and transitioning smoothly into various industries by possessing the flexibility to learn and adapt to new environments and technologies.

Syllabus information:

1. Introduction to Sustainable Development
   
   
   
   • Define the key concepts of sustainability and their alignment with the SDGs
   
   
   • Introduce three pillars of sustainability and their interconnections
   
   
   • Understand the challenges involved in achieving three pillars of sustainability
   
   
   • Understand how to sustainability incorporate sustainability in corporate strategy and operations
   
   
   
   


2. Sustainability Accounting and Accountability
   
   
   
   • Introduce the concepts of sustainability accounting and accountability
   
   
   • Recognise the role of key stakeholders in driving sustainability and business impacts on these stakeholders
   
   
   • Measuring Corporate Sustainability Against ESG Factors
   
   
   
   


3. Sustainability Reporting Theories
   
   
   
   • Understand various sustainability reporting theories such as signalling theory, accountability theory, legitimacy/impression management theory and real effect theory.
   
   
   
   


4. Sustainability Reporting Frameworks
   
   
   
   • Understand various frameworks for guiding sustainability reporting such as GRI, TCFD, TBFD, Integrated Reporting
   
   
   
   


5. Sustainability Reporting Standards
   
   
   
   • Introduce and discuss key sustainability reporting standards such as ESRS, SASB, GRI, ISSB
   
   
   
   


6. Accounting for Climate Change
   
   
   
   • Define the role of climate change accounting in tracking greenhouse gas (GHG) and the key methods and frameworks (e.g. Greenhouse Gas (GHG) Protocol, Task Force on Climate-related Financial Disclosures (TCFD), IFRS S2, ESRS E1) for measurement approaches (e.g. Scope 1, 2, and 3 emissions classification and measurement techniques).
   
   
   
   


7. Accounting for Biodiversity




• Introduce the concept of biodiversity accounting and its importance and the methods (e.g. ecosystem service approach, natural inventory approach) and frameworks for Biodiversity Measurement (e.g. GRI 101, ESRS 4)




8. Accounting for Human rights




• Explain the role that accounting plays in human rights protection and introduce the key standards companies can use to report on human rights (e.g. GRI 410-414, ESRS 1, ESRS 2).




9. Sustainability Auditing and Assurance




• Introduce the fundamentals of sustainability auditing and assurance and its importance in ensuring credibility and transparency.


• Review key sustainability assurance standards and frameworks and the role of professional accountants in verifying sustainability reporting.




10. The impact of Sustainability Reporting




• Explain how sustainability reporting can drive sustainable development and address the concerns of key stakeholders.


• Identifying influences of sustainability reporting on sustainable strategy and operations for business


• Identifying barriers to progress in corporate sustainability and sustainability reporting

This module will be delivered via:

• One 2-hour seminar per week
• One 1-hour lecture fortnightly

Students are expected to undertake the reading before classes and be prepared to engage in discussion.

Students are expected to prepare and deliver one ten-minute presentation at the end of the module.