Accounting Practices and Their Impact on University Sustainability Reporting: A Systematic Review

Sustainability reporting in higher education has garnered increasing attention as universities strive to demonstrate their commitment to environmental, social, and governance (ESG) principles. This study systematically reviews the literature to explore how accounting practices influence sustainability reporting in universities. The analysis identifies internal factors, such as institutional size, age, and internationalization, which shape the university's capacity and strategic focus. External factors include regulatory pressures, societal expectations, and the role of the media in promoting public accountability. Legitimacy theory and stakeholder theory provide a framework to explain the adoption of sustainability reporting, emphasizing the need to maintain institutional legitimacy and meet stakeholder expectations. However, barriers such as resource constraints, inconsistent reporting standards, and contextual differences, particularly in developing countries, hinder broader adoption. The literature selection process followed the PRISMA framework, identifying 244 articles, screening 114, assessing 37 for eligibility, and selecting 32 for in-depth review. The findings underscore the importance of accounting practices, such as standards-based reporting and sustainability-focused budgeting, in fostering transparent university governance. Practical recommendations are offered to help universities integrate sustainability reporting through stakeholder engagement and regulatory alignment, contributing to global development goals.