Integrating Sustainability in Controlling and Accounting Practices: A Critical Review and Implications for Competences in German Vocational Business Education

TL;DR

This paper critically reviews how sustainability is integrated into accounting and controlling practices in German vocational education, highlighting the competencies needed for employees to support sustainability initiatives.

Contribution

It provides a structured analysis of existing literature on sustainability integration and identifies key competencies required for accounting and controlling professionals.

Findings

Sustainability is often managed separately from core accounting functions.

Integration of sustainability into value creation is limited and varies across companies.

Competency requirements for employees are evolving to include sustainability-related skills.

Abstract

Sustainability in accounting and controlling has traditionally been understood in terms of securing the long-term existence of companies. However, with the introduction of integrated non-financial reporting, sustainability, as per the triple bottom line model, is increasingly being discussed as a component of accounting and controlling. Yet, integration primarily occurs in separate sustainability management and controlling departments. Moreover, the implementation of sustainability efforts requires suitably qualified employees, who drive the transition. The academic discourse surrounding sustainability in businesses in general, and in accounting and controlling specifically, is complex. It remains unclear to what extent sustainability has been integrated into accounting and controlling, and what competencies employees need to manage this transformation. These questions will be critically analyzed in this structured literature review of 79 publications. The results provide insights into a) how companies conceptualize sustainability, b) whether and how they integrate it into their value creation processes, and c) the relevance of accounting and controlling for these developments. To contextualize the role of employees, the competency requirements within companies will be analyzed to enable employees in accounting and controlling to engage effectively in sustainability-oriented activities. Specifically, implications for changes in curricula with a focus on accounting and controlling are derived.