Sustainability: The adoption of green economy and sustainable accounting principles by South African listed companies and lessons learnt

Abstract

The globe is facing challenges such as wars, poverty, injustice, environmental degradation, inequality, and climate change. These challenges have unsettled man in his habitation on the globe thereby prompting the United Nations to engage all nations to unite in addressing these global challenges. The interaction of the United Nations with the global community led to the understanding that eradicating poverty must be coupled with strategies that promote economic growth whilst addressing a myriad of social needs as well as climate change and environmental issues. Amongst the strategies to tackle the global challenges indicated above are sustainable accounting and the green economy. As members of the global community, South African listed companies also have a role to play in combating sustainability challenges. This paper contributes to the literature on sustainability, particularly on the adoption of the green economy and sustainable accounting by listed companies in the South African context as well as lessons learned in the process.

Environmental, social and governance and financial performance nexus in South African listed firms

“…Some companies view sustainability as a competitive advantage, while others consider it a standard practice (Krishnamoorthy 2021). However, the adoption of sustainability practices is a nuanced and evolving process over time, with corporations worldwide voluntarily integrating more ESG practices, suggesting potential economic benefits (Denhere 2022). International organisations, sector institutions and governments are endorsing a sustainable global economy, leading companies and investors to incorporate ESG considerations into their decision-making processes.…”