Embedding Environment and Sustainability into Corporate Financial Decision-making

Manuel Siegrist, Gary Bowman, Evelyn M. Mervine, Colette Southam

Research output: Contribution to journalArticleResearchpeer-review

23 Citations (Scopus)
558 Downloads (Pure)


The business case for sustainability can be built upon: (1.) cost reduction from efficient resource utilisation, (2.) revenue enhancement, (3.) risk management, and (4.) intangible assets (Esty and Winston 2009). However, executives often adopt a short-term perspective owing to executive compensation, investor pressure, and decision-making criteria tied to fixed financial reporting systems. We propose an integrated conceptual framework which highlights how firms could embed environment and sustainability into their long-term financial decision-making framework. To give this goal structure, the firm could adopt: (1.) longer-term executive compensation plans, (2.) longer-term financial reporting, and (3.) flexible financial decision-making models which embed intangibles.
Original languageEnglish
Pages (from-to)129-147
Number of pages19
JournalAccounting and Finance
Issue number1
Early online date28 Aug 2019
Publication statusPublished - 1 Mar 2020


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