Integrating ESG into Business Strategy: A Paradigm Shift from Traditional Accounting to Sustainability Accounting

DOI

https://www.doi.org/10.59256/ijrtmr.20250503013

Published In

Volume 5, Issue 3 (2025)

Published Online

May-June 2025

Pages

112-116

Article Type

Original Article

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As businesses around the world face increasing pressure to operate responsibly, there's a noticeable shift toward integrating Environmental, Social, and Governance (ESG) principles into how companies are run and evaluated. This paper explores why embedding ESG into corporate strategies and reporting is becoming not just important, but essential. It draws a clear comparison between traditional financial accounting and sustainability accounting, showing how the latter extends beyond profits to include broader concerns like environmental impact and social responsibility. The discussion highlights the evolving role of accountants in this landscape, as they take on new responsibilities in managing and reporting ESG data. Along the way, it also addresses some of the major challenges-such as the lack of consistent standards, difficulties in verifying non-financial information, and navigating changing regulations. Finally, the paper offers suggestions for how ESG and traditional accounting practices can be brought together to support more balanced, long-term value creation.