Sustainability Accounting as a Foundation for Transparent and Accountable Governance: A Systematic Review

Abstract

Sustainability accounting (SA) has emerged as a critical instrument for enhancing transparency and accountability in governance. Despite its growing relevance, there remains a lack of consolidated understanding of how SA contributes to governance quality, particularly in public sector institutions. This study aims to systematically review the existing literature on sustainability accounting and its role as a foundation for transparent and accountable governance. Using a systematic literature review methodology, this study analyzed 52 peerreviewed articles published between 2010 and 2024 from databases including Scopus, Web of Science, and Google Scholar. Articles were selected based on predefined inclusion and exclusion criteria aligned with PRISMA guidelines. The review reveals that SA mechanisms, including environmental cost accounting, social accounting, and integrated reporting, significantly enhance governance transparency by enabling stakeholders to access reliable, comprehensive, and comparable nonfinancial information. Furthermore, SA frameworks support accountability by aligning organizational decisions with sustainability goals and stakeholder expectations. Key challenges identified include the absence of standardized SA frameworks in the public sector, limited institutional capacity, and inconsistent disclosure practices. This study concludes that embedding sustainability accounting into governance structures is essential for achieving Sustainable Development Goals (SDGs) and strengthening public trust. Recommendations are provided for policymakers and governance practitioners.

Keywords: Sustainability Accounting; Governance Transparency; Accountability; Systematic Review; Integrated Reporting; Public Sector