Integration of ESG Reporting Into Strategic Management Accounting: a Conceptual Transformation of the Balanced Scorecard
DOI:
https://doi.org/10.58423/2786-6742/2026-12-272-284Keywords:
BSC, ESG, strategic management accounting, sustainable development, integrated reporting, corporate governance, inclusion, non-financial indicatorsAbstract
The article examines the issue of integrating ESG reporting (Environmental, Social, Governance) into the system of strategic management accounting of enterprises based on the modified Balanced Scorecard (BSC) model. The relevance of the study is due to the transformation of the global business environment, the strengthening of regulatory requirements in the field of non-financial reporting, in particular, the implementation of the CSRD directive and ESRS standards, as well as the growing role of ESG indicators in investment and risk management processes. It is substantiated that traditional financial indicators do not provide a comprehensive assessment of the efficiency of the enterprise in the context of sustainable development. The methodological basis of the study is a systematic analysis, generalization of scientific sources, comparative analysis of European non-financial reporting standards (GRI, ESRS, TCFD, SASB), as well as conceptual modeling. The study proves that strategic management accounting acts as an integration platform for combining financial and non-financial indicators, creating a methodological basis for the implementation of ESG. An expansion of the classical BSC model is proposed by integrating ESG indicators into all its perspectives and introducing a fifth perspective - "sustainable development", which concentrates environmental, social and management KPIs. ESG-oriented indicators are proposed for each BSC perspective, which will allow for the operationalization of non-financial factors in the strategic control system.
It is studied that the synergy of ESG and BSC contributes to increasing the investment attractiveness of enterprises, reducing non-financial risks and forming long-term business value. At the same time, ESG integration actualizes a number of challenges related to the measurement methodology, standardization of indicators and digital transformation of management accounting.
The proposed conceptual model of ESG integration into BSC can be used as a practical tool for strategic management accounting, especially for Ukrainian enterprises in the context of harmonization with European standards and integration into international capital markets.
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