UST-Alfredo M.

Velayo College of Accountancy

ELE SR: Sustainability Reporting

Module 1: Introduction to sustainability
as an interdisciplinary practice - Part I
Yabut | Punsalan | Geraldo | Bagayao
2025

Icon Credits: Freepik. This material is not to be distributed outside of the ELE SR classes. Cited materials are used for educational purposes only.
Defining Sustainability

Brundtland Report IISD

Humanity has the ability to make development For the business enterprise, sustainable
sustainable to ensure that it meets the needs development means adopting business
of the present without compromising the strategies and activities that meet the needs of
ability of future generations to meet their the enterprise and its stakeholders today while
own needs. The concept of sustainable protecting, sustaining and enhancing the human
development does imply limits - not absolute and natural resources that will be needed in the
limits but limitations imposed by the present future (IISD, n.d.).
state of technology and social organization on
environmental resources and by the ability of
the biosphere to absorb the effects of human
activities (WCED, 1987)
Sustainability Models: UN SDGs
Sustainability Models: UN SDGs
Sustainability Models: UN SDGs
Assessment of the 17 Sustainable Development Goals (SDGs) has largely focused
on formulating appropriate targets and indicators for each goal. Much less
attention has been devoted to estimating possible tradeoffs and
complementarities in attaining the various SDGs. Yet such tradeoffs and
complementarities clearly exist. We develop an analytical model to estimate the
welfare effects of progress in attaining one SDG while accounting for
interactions in achieving other SDGs. We assess quantitatively progress in the
SDGs over 2000–2016 at the global level and for low-income countries, using a
representative indicator for each goal. We then estimate the welfare changes for
improvements in No Poverty (SDG1) net of any welfare gains and losses in
attaining each of the remaining 16 goals. For the world, we estimate the per
capita welfare change of reductions in 2000–2016 poverty rates net of any gains
or losses in attaining each of the remaining 16 goals is $12,737 per capita. This is
more than double the welfare change of $5671 per person for poverty reduction
alone from 2000 to 2016. However, once interactions with other SDGs are taken
into account, the net welfare change for poverty reduction in poor economies
from 2000 to 2016 is $244 per person, which is almost 20% lower than the welfare
estimate of $299 per capita of poverty reduction on its own. Such an analysis
helps policy makers prioritize improvements towards one goal or set of goals,
and show explicitly the net gains and losses for achieving one goal while
impacting others. For example, over 2000–2016 the world may have come closer
to attaining the No Poverty goal, but at the expense of other critical SDGs,
especially those associated with the environment. This research has important
implications for achieving sustainability through pursuit of the SDGs.
Sustainability Models: SDG Wedding Cake Model
Sustainability Models: SDG Wedding Cake Model

Weak Strong
Sustainability Models: Sustainability as a Paradox

We empirically examine the triple-bottom-line of a sample of 746 firms from

2003 to 2013. The business case for sustainability advocates for corporate
responsibilities only if they strengthen profits. In contrast, paradox theory states
that managers should embrace the tensions between multiple bottom lines
seeking simultaneous benefits. Combining data from KLD and Compustat, we
find strong supporting evidence for paradox theory. First, the findings suggest
that the three components of the triple bottom line move in tandem, rather than
being mutually exclusive, where high (poor) performance in one dimension
relates to high (poor) performance in the other two dimensions, regardless of the
economic conditions. Second, using the Great Recession as an exogenous shock,
we find supporting evidence for paradox theory. Lastly, we link paradox theory
and its implication on market valuation; we find that the more components
achieved at a high level, the higher the market valuation, with the valuation
increasing per component achieved. We conclude that the traditional focus on
scarcity and the mutual exclusivity of sustainability goals is not empirically
supported in our study. Instead, we find compelling evidence for the abundance
perspective of paradox theory and the simultaneous achievement of
sustainability goals. Our results highlight that in viewing three bottom lines,
managers should embrace any ostensible tensions to find creative ways to
address all three instead of all for one.
Sustainability Models: Triple-Bottom Line
Sustainability Models: Triple-Bottom Line

[Link]
ESG-_Final_feb2021.pdf

[Link]
Sustainability Models: Triple Bottom Line

Together with its subsequent variants, the

TBL concept has been captured and
diluted by accountants and reporting
consultants. Thousands of TBL reports are
now produced annually, though it is far
from clear that the resulting data are being
aggregated and analyzed in ways that
genuinely help decision-takers and policy-
makers to track, understand, and
manage the systemic effects of human
activity.
Elkington, J. (2018, June 25). 25 Years Ago I Coined the Phrase “Triple Bottom Line.” Here’s
Image Source: [Link] Why It’s Time to Rethink It. Harvard Business Review. [Link]
ago-i-coined-the-phrase-triple-bottom-line-heres-why-im-giving-up-on-it
Sustainability Models: Circular Economy
Sustainability Models: Circular Economy
Sustainability Models: Circular Economy
Sustainability Models

UN SDGs Negative Model Positive Model

Circular Triple-Bottom
Economy Line
Sustainability and Accountants: Enhanced Competencies

Adaptability And Technological

Flexibility Capability
Ability to apply foundational Ability to analyze non-financial
accounting knowledge to new data and large datasets.
types of data reporting and
new reporting requirements

(Gil-Doménech 2021; ISCA 2022; (AICPA 2022; Carvalho and Almeida

Redman andWiek 2021) 2022; Deloitte 2022)
Sustainability and Accountants: Enhanced Competencies

Critical Thinking And

Systems-Thinking Interpersonal Skills
Problem Solving
Ability to apply knowledge of Ability to communicate across Ability to quantify and translate
topic interconnectivity to (a) groups and disciplines to gain nonfinancial data and
understand the various an understanding of inputs to associated risks into financial
financial statement impacts of sustainability metrics statement data.
sustainability metrics and (b)
propose innovative solutions to
associated risks.

(Deloitte 2022; JICPA 2022; Lozano et al. 2017; (Carvalho and Almeida 2022; JICPA 2022; (Lozano et al. 2017; Rieckmann 2018; Sharma
Redman and Wiek 2021) Lozano et al. 2017; Redman and Wiek 2021) and Stewart 2022;; Tran and Kerzig 2023)
Sustainability and Accountants: Enhanced Competencies

Systems-Thinking

Ability to apply knowledge of

topic interconnectivity to (a)
understand the various
financial statement impacts of
sustainability metrics and (b)
propose innovative solutions to
associated risks.

(Deloitte 2022; JICPA 2022; Lozano et al. 2017;

Redman and Wiek 2021)
Sustainability and Accountants: Enhanced Competencies

Adaptability And
Flexibility
Ability to apply foundational
accounting knowledge to new
types of data reporting and
new reporting requirements

(Gil-Doménech 2021; ISCA 2022;

Redman andWiek 2021)
Sustainability and Accountants: Enhanced Competencies

Technological
Capability
Ability to analyze non-financial
data and large datasets.

(AICPA 2022; Carvalho and Almeida

2022; Deloitte 2022)
Image Source: [Link]
cloud/epbca/esg_about.html?source=%3Aow%3Ams%3Apt%3A%3A
Sustainability and Accountants: Enhanced Competencies

Technological
Capability
Ability to analyze non-financial
data and large datasets.

(AICPA 2022; Carvalho and Almeida

2022; Deloitte 2022)

Image Source: [Link]

cloud/epbca/esg_about.html?source=%3Aow%3Ams%3Apt%3A%3A
Sustainability and Accountants: Revised Expected Outcomes

International Federation of Accountants. (2024). Proposed Revisions to IES 2,3, and 4 – Sustainability.
[Link]
Sustainability and Accountants: Revised Expected Outcomes

International Federation of Accountants. (2024). Proposed Revisions to IES 2,3, and 4 – Sustainability.
[Link]
Sustainability and Accountants: Revised Expected Outcomes

International Federation of Accountants. (2024). Proposed Revisions to IES 2,3, and 4 – Sustainability.
[Link]
Sustainability and Accountants: Revised Expected Outcomes

International Federation of Accountants. (2024). Proposed Revisions to IES 2,3, and 4 – Sustainability.
[Link]
Sustainability and Accountants: Revised Expected Outcomes

International Federation of Accountants. (2024). Proposed Revisions to IES 2,3, and 4 – Sustainability.
[Link]
Activity 1: Your Role in Sustainability
Preferably using word or google doc, answer the table below. Take a
screenshot (or picture) of your answer to be uploaded on Canvas.

Three (3) concepts or Models Two (2) actionable ways how One (1) major challenge in you
that resonated with you and your learning in this course developing personal
why? can contribute to SDG 4, 12, or sustainability practices. How
16? do you plan to address this
challenge?
 UST-Alfredo M. Velayo College of Accountancy

ELE SR: Sustainability Reporting

Module 1: Introduction to sustainability
as an interdisciplinary practice - Part II
Yabut | Punsalan | Geraldo | Bagayao
2025

Icon Credits: Freepik. This material is not to be distributed outside of the ELE SR classes. Cited materials are used for educational purposes only.
Ethics of Sustainability

Shareholder Stakeholder
Theory Theory
● Primary responsibility of ● Consider interest of all
corporations is to maximize stakeholders
shareholder value ● Integration of environmental
● Sustainability is only secondary and social objectives across the
to profit (i.e., Friedman) value chain
● Shareholder returns > ● Sustainable practices as
Stakeholder interest (e.g., business investments leading to
environmental, social) long-term value creation and
resilience
Ethics of Sustainability

Business and human rights

Labor and working conditions

Ethics and the individual manager Organizational

Sustainability
Misuse of power

Misuse of financial resources

Misuse of environmental resources

Ethics of Sustainability

Schuler, D., Rasche, A., Etzion, D., & Newton, L. (2017). Guest editors’ introduction: Corporate sustainability
management and environmental ethics. Business Ethics Quarterly, 27(2), 213-237.
Ethics of Sustainability

“Taylor Swift is receiving a lot of heat for

the planet-heating emissions of her
private jet. Not only is Swift topping the
charts but also comes first in the list of
celebrities with the highest Co2 emissions
from flying, according to an initiative
tracking celebrities flying privately. Her
private jet usage amounted to an
estimated 8,300 tonnes of carbon
emissions in 2022 – that’s about 1,800
Reference:
Faecks, B. (2024, February 13). Taylor Swift and the top polluters department. times the average human’s annual
Carbon Market Watch. [Link]
and-the-top-polluters-department/
emissions, or 576 times that of the
average American and about 1,000 times
that of the average European.”
(Faecks, 2024)
Ethics of Sustainability

“Carbon offsets – including carbon captures

such as tree-planting initiatives, since trees
absorb carbon dioxide from the air – are
purchased to compensate for greenhouse
gas emissions. They’re typically purchased
by companies to offset the total amount of
carbon released into the atmosphere by
their business. In Swift's case, her publicist
Reference: told the AP that she bought double the
Mendez, L. (2024, February 14). Taylor Swift claims she offsets her travel carbon
footprint - how does that work? [Link]
amount of carbon offsets needed to
taylor-swift-private-jet-flight-travel-carbon-footprint compensate her travel for the Eras Tour
before it kicked off in March – likely enough
to also cover the additional mileage she's
racked up travelling to see Kelce.”
(Mendez, 2024)
Ethics of Sustainability

Reference: Coldplay. (n.d.). Music of the Spheres World Tour. [Link]

Ethics of Sustainability

Reference: Coldplay. (n.d.). Music of the Spheres World Tour.

[Link]
Ethics of Sustainability

Reference: Coldplay. (n.d.). Music of the Spheres World Tour. [Link]

Ethics of Sustainability

[Link]
Ethics of Sustainability

Schuler, D., Rasche, A., Etzion, D., & Newton, L. (2017). Guest editors’ introduction: Corporate sustainability
management and environmental ethics. Business Ethics Quarterly, 27(2), 213-237.
See-Judge-Act

How different are the

See approaches of the two artists
as regards sustainability?

Which environmental ethics

Judge orientation are manifested in
each approach?

What actions points can we

Act
have from these realizations?
Ethics of Sustainability

“A sense of deep communion with the rest of

nature cannot be real if our hearts lack
tenderness, compassion and concern for our
fellow human beings.” (LS 91)

“The natural environment is a collective good, the

patrimony of all humanity and the responsibility
of everyone.” (LS 95)

“Business is a noble vocation, directed to

producing wealth and improving our world.” (LS
129)
Greenwashing

Greenwashing

Greenwashing is when a management team makes

incomplete, unsubstantiated, or outright false claims
around the sustainability characteristics of a product,
service, or a firm’s actual operations. Greenwashing
tends to occur when management teams wish to appear
that they are engaged in rigorous ESG analysis, given
[Link]
the pressure to do so in today’s business environment.
[Link]
Greenwashing

H&M used a
scorecard based on
Higgs
Sustainability
Profile, effectively
claiming that some
of their products
are good for the
environment (i.e.,
less resource
intensive.
Shendruk, A. (2022, June 29). H&M showed bogus
environmental Higg Index scores for its clothing. Quartz.
Greenhushing

Greenhushing

Greenhushing refers to a company’s refusal to publicize ESG

information. The company may fear pushback from
stakeholders who would find its sustainability efforts lacking
or from investors who believe ESG undermines returns.
With this, it becomes challenging to analyze corporate
climate targets, share best practices on decarbonization and
calculate Scope 3 emissions, which by definition require
widespread reporting.
[Link]
[Link]
[Link]#:~:text=Greenhushing%20refers%20to%20a%20company's,who%20believe%20E
SG%20undermines%20returns.
Greenhushing

An oil and gas

company reports However, the said
and tracks its strategy leaves out
greenhouse gas its Scope 3
emission targets. emissions, which
It presents positive is the most
information about significant
the topic in its component of its
sustainability total emissions.
report.
Sustainability Mindset

“This mindset is a way of thinking and being

that predisposes individuals to act for the
good of planet and people. It is a complex
construct, developed via the path of an
ecological worldview, a systems perspective,
and aspects pertaining to emotional and
spiritual intelligence. It is aimed at guiding
individuals toward living and promoting a
more sustainable life, which is crucial for
humanity in the 21st century.”
Rimanoczy, I., & Klingenberg, B. (2021). The Sustainability Mindset Indicator: a personal development
Photo Credit:
tool. Journal of Management for Global Sustainability, 9(1), 43–79.
[Link]
[Link]
am/
Sustainability Mindset

Ecological View
Ecoliteracy My Contribution

Understanding the state of the planet

allows increasingly full awareness of the By identifying the ways in which we are
challenges involved, the complexity of contributing to the problems, we have a
their interrelation, and how we feel about chance to act.
them.

Rimanoczy, I., & Klingenberg, B. (2021). The Sustainability Mindset Indicator: a personal development tool. Journal of Management for Global
Sustainability, 9(1), 43–79. [Link]
Sustainability Mindset

Systems Perspective
Long-term Thinking Both-and Thinking

Both-and thinking allows for

Considering the long-term when analyzing
understanding paradoxes and calls for
situations and making decisions creates
creative solutions that are inclusive of all
positive impact on global sustainability.
stakeholders.
Cyclical Flow Interconnectedness

There are no linear processes in Nature.

When considering both diversity and
Many aspects of the human-created
interconnectedness, our decisions and
unsustainability of the planet are a result
actions are more inclusive and contribute
of the misconception that we are not
to the sustainability of the whole.
governed by this law of Nature

Rimanoczy, I., & Klingenberg, B. (2021). The Sustainability Mindset Indicator: a personal development tool. Journal of Management for Global Sustainability, 9(1), 43–79.
[Link]
Sustainability Mindset

Emotional Intelligence
Creative Innovation Reflection
Speed and efficiency create automated actions,
When we neglect the non-rational wisdom we
which may result in unintended consequences.
have in us, our solutions are missing critical
Reflective practices help to pause, to ponder the
information, have poor quality, and may create
situation and its implications before jumping into
negative impacts on the ecosystem and society.
action.

Self-Awareness

When we explore our personal values,

beliefs, assumptions, and motivations, we
gain greater control over our own actions
and see new and alternative behaviors.

Rimanoczy, I., & Klingenberg, B. (2021). The Sustainability Mindset Indicator: a personal development tool. Journal of Management for Global Sustainability, 9(1),
43–79. [Link]
Sustainability Mindset

Spiritual Intelligence
Oneness with Nature Purpose
Understanding that we are one with Nature, i.e., a Defining our purpose provides an unconscious
species within species, and that all Nature is in us, a
compass, and when it is grounded in values of
powerful spiritual experience that can shape
behaviors, leading to a more harmonious relationship our higher self, we actively shape a better
with each other and all beings. world.

Mindfulness

Mindfulness enhances awareness and

compassion and predisposes to social and
environmental actions.

Rimanoczy, I., & Klingenberg, B. (2021). The Sustainability Mindset Indicator: a personal development tool. Journal of Management for Global Sustainability, 9(1),
43–79. [Link]
 20 Minute Timer

This timer silently counts down to 0:00, then alerts you that time is up with a gentle beep sound.

Sustainability Mindset

Compute the averages of the following:

E = Ave(E_E, E_M)

ST = Ave(ST_L, ST_B, ST_C1, ST_C2,

ST_INT)

EI = Ave(EI_CI, EI_Ref, EI_SA1, EI_SA2)

Please accomplish this

SI = Ave(SI_P, SI_M, SI_O)
survey in the next 5
minutes. IFRS = AVE(IFRS_K1, IFRS_K2, IFRS_A1,
[Link] IFRS_2, IFRS_E1, IFRS_E2, IFRS_P)
Sustainability as an Interdisciplinary Practice

I
U M + M
I

Unidisciplinary Multidisciplinary Interdisciplinary

Focus on one discipline Focus on adding, rather than Focus integrating several
and the development of integrating, insights from one disciplinal knowledge forming
disciplinary knowledge or more disciplines forming a more comprehensive
thematic alignments/ understanding of a
phenomenon
Sustainability necessitates
Sustainability involves complex
collaboration across different
problems and systems. Hence,
stakeholders from the sciences (i.e.,
integrating perspectives from
natural, social) and beyond (i.e.,
multiple disciplines is necessary
regulators).
 Professionals Involved in Sustainability Practice

Physics Biology Engineering Development Human Agriculture Climate

(Chemical, Environmental,
Industrial)
Studies Ecology Science

Accounting Business Law Economics Forestry Geology

Administration
Icon credits: [Link]