LEARNING OUTCOMES
The main objective of this course is to foster students understanding about the possibilities and challenges of accounting for corporate sustainability practices in terms of reporting, assuring, and measuring outcomes.
After completing the course, students will be able to
- understand the role of accounting for corporate sustainability, and the relevant concepts within corporate sustainability from the accounting perspective
- understand and apply relevant sustainability reporting frameworks, such as GRI, SASB, and Integrated Reporting
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Credits: 6
Schedule: 01.11.2021 - 13.12.2021
Teacher in charge (valid for whole curriculum period):
Teacher in charge (applies in this implementation): Eduardo Schiehll, Emma-Riikka Myllymäki
Contact information for the course (applies in this implementation):
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Questions about the course should be asked primarily
- during the class
- in the course website in MyCourses: Chat 'General discussion'
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CEFR level (valid for whole curriculum period):
Language of instruction and studies (applies in this implementation):
Teaching language: English. Languages of study attainment: English
CONTENT, ASSESSMENT AND WORKLOAD
Content
valid for whole curriculum period:
The course covers both the key concepts and the practice of corporate sustainability in the modern organization, with a focus on external reporting (e.g. sustainability reporting) and performance assessment (e.g. ESG ratings). Through various teaching materials and learning activities, students will be encouraged to apply sustainability frameworks to business practice, and to critically evaluate the processes of reporting and accountability in organization's sustainable development. This course, therefore, aims to offer a holistic and comprehensive approach to study accounting for sustainability. Intensive participation on lectures is necessary in order to succeed the course.
applies in this implementation
The major topics covered in the course include:
- The link between corporate sustainability and accounting
- The potential reasons for and consequences of sustainability reporting
- Sustainability reporting landscape
- The quality of sustainability reporting
- Sustainability reporting assurance
- ESG performance
- ESG financial materiality
- Principles of corporate GHG emissions calculations
Assessment Methods and Criteria
valid for whole curriculum period:
Grounds for evaluation: examination, team assignments, and individual assignments
Weight of the exam on the course is max 40%.
Workload
valid for whole curriculum period:
Total 160 h, including
- Contact teaching
- Independent studying
- Exam (3h)
DETAILS
Study Material
valid for whole curriculum period:
Readings will be announced in the syllabus.
applies in this implementation
READINGS (Myllymäki)
GRI Standards (Link to GRI: https://www.globalreporting.org/how-to-use-the-gri-standards/resource-center/)
International Integrated Reporting Council (IIRC). The international <IR> framework. (https://www.integratedreporting.org/resource/international-ir-framework/)
Task Force on Climate-related Financial Disclosures (TCFD).
- Final report: Recommendations of the Task Force on Climate-related Financial Disclosures (https://www.fsb-tcfd.org/publications/)
- Alignment with other frameworks. https://www.tcfdhub.org/alignment/
Sustainable Development Goals disclosure
- Business reporting on the SDGs: Integrating the SDGs into corporate reporting: A practical guide. GRI. UNGC.
- Linking the SDGs and the GRI Standards.
EU sustainability reporting
- Communication from the Commission — Guidelines on non-financial reporting: (1) Methodology for reporting non-financial information, and (2) Supplement on reporting climate-related information (https://ec.europa.eu/info/publications/non-financial-reporting-guidelines_en)
- European Financial Reporting Advisory Group (EFRAG). Final report: Proposals for a relevant and dynamic EU sustainability reporting standard-setting (https://ec.europa.eu/info/publications/210308-efrag-reports_en)
- European Commission’s proposal for a Corporate Sustainability Reporting Directive (CSRD) (https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en#review)
A4S. Navigating the reporting landscape. https://www.accountingforsustainability.org/en/activities/reporting.html
Articles:
Ballou, B., R. J. Casey, J. H. Grenier & D. L. Heitger (2012). Exploring the strategic integration of sustainability initiatives: Opportunities for accounting research. Accounting Horizons 26:2, 265-288.
Christensen, H.B., L. Hail, & C. Leuz. 2021. Mandatory CSR and sustainability reporting: economic analysis and literature review. Review of Accounting Studies 26: 1176–1248.
Diouf, D., & O. Boiral. (2017). The quality of sustainability reports and impression management. A stakeholder perspective. Accounting, Auditing & Accountability Journal 30: 643-667.
Hahn, R. & M. Kühnen (2013). Determinants of sustainability reporting: a review of results, trends, theory, and opportunities in an expanding field of research. Journal of Cleaner Production 59, 5-21.
Maroun, W. (2018). A conceptual model for understanding corporate social responsibility assurance practice. Journal of Business Ethics 1-23.
Safari, M., & A. Areeb (2020). A qualitative analysis of GRI principles for defining sustainability report quality: an Australian case from the preparers’ perspective. Accounting Forum 44:4, 1-32.
E-book:
Accounting for Sustainability: Practical Insights (2010) Edited by Hopwood A., Unerman. J. and Fries, J.
Articles and reports:
Amel-Zadeh, A., & Serafeim, G. (2018). Why and How Investors Use ESG Information: Evidence from a Global Survey. Financial Analysts Journal, 74(3): 87-103.
From Transparency to Performance: Industry-based Sustainability reporting on Key-Issues.The Hauser Center for Nonprofit Organizations & Initiative for Responsible Investment
JetBlue Sustainability Report
Case Studies:
Corporate Greenhouse Gas Accounting: Carbon Footprint Analysis. UV2027 – Darden Business Publishing
Frito-Lay North America: The Making of Net Zero Snack Chip. UV2025 - Darden Business Publishing
Substitutes for Courses
valid for whole curriculum period:
Prerequisites
valid for whole curriculum period:
SDG: Sustainable Development Goals
8 Decent Work and Economic Growth
12 Responsible Production and Consumption
13 Climate Action
FURTHER INFORMATION
Further Information
valid for whole curriculum period:
Teaching Period:
2020-2021 Autumn II
2021-2022 Autumn II
Course Homepage: https://mycourses.aalto.fi/course/search.php?search=22E29100
Registration for Courses: In the academic year 2021-2022, registration for courses will take place on Sisu (sisu.aalto.fi) instead of WebOodi.
Via Sisu. Please see Sisu for the registration dates.
If more students have enrolled by the enrolment deadline than can be accepted on the course, priority will be given to students based on their study right: 1. Master's degree students in Accounting and Creative Sustainability 2. Exchange students, CEMS students 3. Bachelor's students in Accounting who have completed more than 150 cr 4. Master's students in other majors 5. Bachelor's students in other majors who have completed more than 150 cr
applies in this implementation
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IN THE AUTUMN SEMESTER 2021:
- mandatory pre-assignment that needs to be completed before the first session (see 'Assignments' --> 'Pre-Assignment, DL 1.11.' for more information)
- approximately 40 % of the classes will be organized as hybrid (both in the classroom and in Zoom), and the rest of the classes will be organized online (in Zoom)
- exam will be also conducted online through MyCourses
- attendance on the first session is strongly recommended, since important information about the course arrangements will be provided
- Part of the contact teaching will be held as tutorial sessions for smaller groups of students. Active participation in these tutorial sessions affects grading.
FOR FURTHER INFORMATION, PLEASE SEE 'INFO 2021'
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- Teacher: Myllymäki Emma-Riikka
- Teacher: Schiehll Eduardo