Why do sustainability accounting practices differ between industries?

Sustainability accounting practices vary between industries primarily because each industry encounters distinct sustainability challenges and opportunities. Different sectors inherently face unique environmental, social, and governance (ESG) issues based on their operational processes, resources used, and stakeholder expectations. For example, the manufacturing industry may grapple with issues related to carbon emissions and waste management, while the agricultural sector may focus more on resource management, land use, and sustainable practices related to food production. This diversity necessitates tailored approaches to sustainability accounting that can effectively address the specific impacts and risks relevant to each industry.

The varying stakeholder demands and regulatory requirements also influence how sustainability is measured and reported in different sectors, reflecting the need for differentiated accounting practices. By recognizing and accommodating these industry-specific challenges and contexts, companies can develop more relevant sustainability strategies and disclosure frameworks that accurately reflect their performance and engage stakeholders effectively.