Sustainable Digital Accounting: Integrating ESG Reporting and Data Analytics in the Era of Industry 5.0
DOI:
https://doi.org/10.56910/jvm.v12i1.918Keywords:
Data Analytics, ESG Reporting, Ethical Innovation, Industry 5.0, Sustainable Digital AccountingAbstract
This study explores the conceptual integration of Environmental, Social, and Governance (ESG) reporting and data analytics within the framework of sustainable digital accounting, with Industry 5.0 acting as a moderating paradigm. As organizations increasingly face demands for transparency, ethical governance, and sustainable operations, the limitations of traditional accounting systems have become evident. ESG reporting plays a crucial role in communicating non-financial performance and guiding strategic decisions aligned with stakeholder interests and regulatory expectations. However, the effectiveness of ESG disclosures is often hindered by fragmented data structures, inconsistent standards, and insufficient technological support. Data analytics, when integrated into ESG processes, enhances the precision, timeliness, and reliability of sustainability disclosures through predictive modeling, anomaly detection, and real time performance monitoring. Yet, despite its potential, the adoption of data analytics in accounting remains limited and under-theorized. Industry 5.0 introduces a human centric approach to technological transformation, emphasizing ethical innovation, inclusivity, and resilience. By positioning Industry 5.0 as a contextual and moderating framework, this study offers a novel perspective on how ESG and data analytics can synergize to create ethically aligned, future-ready accounting systems. Employing a systematic literature review, the research develops a conceptual model linking ESG, data analytics, and Industry 5.0, providing insights for academics, practitioners, and policymakers aiming to embed sustainability into digital accounting systems. The findings underscore the importance of aligning digital tools with ethical and societal values to advance accountable and sustainable business practices..
References
Appelbaum, D., Kogan, A., & Vasarhelyi, M. A. (2021). Big Data and Analytics in the Modern Audit Engagement: Research Needs. Auditing: A Journal of Practice & Theory, 40(1), 1–27. https://doi.org/10.2308/AJPT-19-007
Asatiani, A., Malo, P., Nagbøl, P. R., Penttinen, E., Rinta-Kahila, T., & Salovaara, A. (2021). Four Types of Artificial Intelligence: An Account of Applications in Accounting and Finance. International Journal of Accounting Information Systems, 40, 100533. https://doi.org/10.1016/j.accinf.2020.100533
Bauer, T., & King, R. (2022). Real-Time Reporting and Decision Making: The Role of Cloud-Based Accounting Systems. Journal of Information Systems, 36(2), 25–43. https://doi.org/10.2308/isys-2021-009
Binns, R., Veale, M., Van Kleek, M., & Shadbolt, N. (2020). ‘It’s reducing a human being to a percentage’: Perceptions of justice in algorithmic decisions. Proceedings of the 2020 CHI Conference on Human Factors in Computing Systems, 1–14. https://doi.org/10.1145/3313831.3378947
Breque, M., De Nul, L., & Petridis, A. (2021). Industry 5.0: Towards a sustainable, human-centric and resilient European industry. European Commission.
Eccles, R. G., Klimenko, S., & Serafeim, G. (2020). The Investor Revolution. Harvard Business Review, 98(3), 106–116. https://hbr.org/2020/05/the-investor-revolution
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman Publishing.
García‐Sánchez, I. M., Aibar‐Guzmán, B., Aibar‐Guzmán, C., & Rodríguez‐Domínguez, L. (2022). Integrated Reporting and Stakeholder Engagement: The Effect of Assurance and the Role of the Board. Corporate Social Responsibility and Environmental Management, 29(2), 330–342. https://doi.org/10.1002/csr.2190
Ioannou, I., Serafeim, G., & Cheng, B. (2023). Corporate Sustainability Reporting and Firm Value: Evidence from the CSRD. Journal of Accounting and Economics, 76(2–3), 101516. https://doi.org/10.1016/j.jacceco.2022.101516
Kotsantonis, S., & Serafeim, G. (2022). How to Make ESG Real. Harvard Business Review, 100(2), 102–111. https://hbr.org/2022/05/how-to-make-esg-real
Margherita, A., & Braccini, A. M. (2022). Industry 5.0: A Human-Centric Solution for Sustainability Challenges in Manufacturing. Technological Forecasting and Social Change, 174, 121246. https://doi.org/10.1016/j.techfore.2021.121246
Moll, J., & Yigitbasioglu, O. (2022). The Role of Internet of Things (IoT) in Sustainability Accounting: A Research Agenda. Accounting & Finance, 62(2), 1529–1555. https://doi.org/10.1111/acfi.12777
Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., ... & Moher, D. (2021). The PRISMA 2020 Statement: An Updated Guideline for Reporting Systematic Reviews. BMJ, 372, n71. https://doi.org/10.1136/bmj.n71
Richins, G., Stapleton, R., Stratopoulos, T., & Wong, C. (2021). Big Data Analytics: Opportunity or Threat for the Accounting Profession? Journal of Information Systems, 35(1), 18–38. https://doi.org/10.2308/isys-18-053
Sierra‐García, L., Zorio‐Grima, A., & García‐Benau, M. A. (2021). Stakeholder Engagement, Assurance, and Integrated Reporting Quality. Business Strategy and the Environment, 30(6), 2687–2701. https://doi.org/10.1002/bse.2775
Sivarajah, U., Kamal, M. M., Irani, Z., & Weerakkody, V. (2021). Critical Analysis of Big Data Challenges and Analytical Methods. Journal of Business Research, 124, 604–616. https://doi.org/10.1016/j.jbusres.2020.01.053
Yakovleva, N., Vazhenina, L., & Vazhenin, S. (2021). Integrating ESG Factors into Corporate Strategies in the Digital Age. Sustainability, 13(19), 10504. https://doi.org/10.3390/su131910504
Zhou, S., Simnett, R., & Green, W. (2022). Mandatory ESG Reporting and the Path Towards Assurance: Evidence from Global Markets. Accounting, Auditing & Accountability Journal, 35(3), 823–850. https://doi.org/10.1108/AAAJ-10-2021-5333
Zhou, K. Z., & Li, C. B. (2020). How Knowledge Affects Radical Innovation: Knowledge Base, Market Knowledge Acquisition, and Internal Knowledge Sharing. Strategic Management Journal, 41(4), 814–836. https://doi.org/10.1002/smj.3127
Zuo, Z., Li, H., & Wang, L. (2021). From Green Accounting to Sustainable Accounting: The Role of Digital Technologies. Journal of Cleaner Production, 306, 127275. https://doi.org/10.1016/j.jclepro.2021.127275
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Jurnal Visi Manajemen
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
