The New EU Sustainable Strategy and Accounting Practice - Ex-ante Corporate and Auditor Perspectives from Germany

Posted: 22 Apr 2022

See all articles by Felix Fischer

Felix Fischer

Catholic University of Eichstaett-Ingolstadt - Ingolstadt School of Management

Florian Habermann

Catholic University of Eichstaett-Ingolstadt - Ingolstadt School of Management

Isabel Mireia Scheucher

Catholic University of Eichstaett-Ingolstadt - Ingolstadt School of Management

Date Written: February 4, 2022

Abstract

This study provides an ex-ante assessment of practitioners’ perception regarding the implementation of the European Union (EU) Taxonomy for Sustainable Actions and the Corporate Sustainability Reporting Directive proposal. This is important because both EU policies confront corporate decision-makers and auditors with a substantial regulatory change in the accounting and (non-)financial reporting practice. By conducting a series of in-depth interviews with experienced practitioners, we focus on the expected impact, the necessary preparatory measures, and the challenges and opportunities associated with the adopted EU policies. The findings of our semi-structured interviews highlight that practitioners endorse the EU’s intention to roll out mandatory non-financial reporting further (and to link it to financial figures). However, we find that the implementation entails major challenges regarding practical realization. This is because of high complexity and a lack of clarity within the EU policies. Moreover, the respondents highlight quality issues and a lack of experience with non-financial data. Our findings support policymakers and standard setters in identifying ways to harmonise reporting practices, preparers and auditors to arrange adequately for the new regulatory requirements, and academic institutions to adjust their accounting research and curricula to altered demands.

Keywords: Corporate sustainability reporting directive, EU taxonomy, non-financial accounting, non-financial reporting, sustainable finance

Suggested Citation

Fischer, Felix and Habermann, Florian and Scheucher, Isabel Mireia, The New EU Sustainable Strategy and Accounting Practice - Ex-ante Corporate and Auditor Perspectives from Germany (February 4, 2022). Available at SSRN: https://ssrn.com/abstract=4026250

Felix Fischer (Contact Author)

Catholic University of Eichstaett-Ingolstadt - Ingolstadt School of Management ( email )

Finance and Banking Department
Catholic University of Eichstaett-Ingolstadt
Ingolstadt, 85049
Germany

Florian Habermann

Catholic University of Eichstaett-Ingolstadt - Ingolstadt School of Management ( email )

Auf der Schanz 49
Ingolstadt, 85049
Germany

Isabel Mireia Scheucher

Catholic University of Eichstaett-Ingolstadt - Ingolstadt School of Management

Finance and Banking Department
Catholic University of Eichstaett-Ingolstadt
Ingolstadt, 85049
Germany

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