Integration of ESG Sustainability Indicators into the Management Accounting System of Manufacturing Corporations

Abstract

The purpose of this article is to deepen theoretical foundations and develop methodological approaches to integrating Environmental, Social and Governance (ESG) indicators into the management accounting system of manufacturing corporations, taking into account contemporary regulatory requirements, business digitalization and the growing importance of non-financial information in managerial decision-making. The methodological framework of the study is based on systemic, institutional and process-oriented approaches, as well as methods of logical generalization, comparative analysis, structural and functional modeling and economic-analytical interpretation, which made it possible to comprehensively examine the mechanisms for incorporating ESG indicators into internal accounting and analytical systems. The study clarifies conceptual approaches to ESG integration in management accounting, identifies their role as a key component of strategic information support and substantiates methodological principles for the selection, structuring and measurement of ESG indicators with regard to the sectoral specifics of manufacturing corporations. The findings demonstrate the feasibility of combining financial and non-financial indicators within integrated management reporting, thereby enhancing the relevance of analytical information and improving the effectiveness of managerial decision-making. The article also determines the directions for applying ESG indicators in strategic and operational planning, budgeting, internal control, performance evaluation and risk management, which contributes to the formation of a comprehensive monitoring system for sustainable corporate development. The results confirm that integrating ESG indicators into management accounting enhances corporate transparency, optimizes costs, mitigates operational and reputational risks, strengthens investment attractiveness and supports the creation of long-term business value. The conclusions emphasize that the implementation of ESG-oriented management accounting provides the basis for a transition toward an integrated management paradigm focused on balancing economic efficiency, social responsibility and environmental sustainability. Prospects for further research are associated with improving quantitative measurement techniques for ESG indicators, developing digital analytical tools, harmonizing internal reporting with international sustainability standards and expanding their practical application in manufacturing corporations.