Sustainability accounting and ESG reporting quality: a systematic literature review and future directions

This systematic literature review examines how sustainability accounting practices (SAP) influence the quality of ESG (environmental, social, and governance) reporting. Drawing on the TCCM framework, we synthesised 156 peer-reviewed articles published between 2001 and the first half of 2026. The findings show that SAP play a central role in improving ESG reporting quality. They strengthen measurement systems and internal controls and promote the adoption of widely recognised reporting frameworks such as GRI, SASB, and ISSB. Improvements are particularly evident in the environmental and governance dimensions, while progress on social aspects remains more limited due to measurement challenges. In addition, digital technologies, including AI, cloud platforms, and automated tools, have increasingly contributed to data reliability, real-time reporting, and overall efficiency over the past decade, although smaller organisations and firms in emerging economies often lag in adoption. Overall, the review highlights the interconnected roles of accounting practices, regulation, governance, and technology in shaping more credible and useful sustainability information. It also identifies key areas where future research and policy initiatives could help reduce symbolic disclosure and enhance the real-world impact of ESG reporting.