Regulatory Framework: From Traditional Accounting to Non-Financial Accounting

Jean Daniel Wecxsteen, Sandra Kendo (), Oussama Kacemi and Safia Gherab
Additional contact information
Jean Daniel Wecxsteen: ICL, Junia, Université Catholique de Lille, LITL
Sandra Kendo: ICL, Junia, Université Catholique de Lille, LITL
Oussama Kacemi: ICL, Junia, Université Catholique de Lille, LITL
Safia Gherab: ICL, Junia, Université Catholique de Lille, LITL

Chapter 6 in Non-Financial Reporting and ESG Performance, 2026, pp 123-138 from Palgrave Macmillan

Abstract: Abstract This chapter addresses the paradigm shift from traditional financial accounting to integrated reporting incorporating environmental, social, and governance (ESG) dimensions. In continuity with prior chapters, it focuses on how regulatory developments, particularly the EU’s Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS), are transforming accounting practices, especially for SMEs. The chapter is structured into three sections. The first traces the historical evolution of accounting standards, highlighting the growing importance of extra-financial information. It emphasizes the increasing influence of stakeholders and neo-institutional theories in expanding corporate responsibility frameworks. The second section explores methodological approaches to integrated accounting. It presents the CARE method, which tackles green accounting by treating natural and human capital as depreciable assets, and the SEMA approach, a participatory framework tailored for SMEs that prioritizes materiality and stakeholder engagement. Both methodologies address the inadequacy of traditional accounting systems in capturing sustainability-related impacts, offering proportionate and actionable solutions. The third section presents a detailed case study: BON SPOT. This SME illustrates practical pathways for integrating ESG into business strategy, operations, and product innovation. Their experiences underscore key challenges—resource constraints, data complexity, and evolving standards—while demonstrating that phased, pragmatic sustainability implementation can yield competitive and relational advantages. This chapter ultimately argues that integrating extra-financial reporting into SME accounting is not merely a regulatory obligation but a strategic opportunity to reshape value creation in the sustainability era.

Keywords: Non-Financial Accounting; ESG; SMEs; Green Accounting (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:psifcp:978-3-032-19092-5_6

Ordering information: This item can be ordered from
http://www.palgrave.com/9783032190925

DOI: 10.1007/978-3-032-19092-5_6

Access Statistics for this chapter

More chapters in Palgrave Studies in Impact Finance from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().