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The Use of Blockchains to Enhance Sustainability Reporting and Assurance†

Author

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  • Kathleen M. Bakarich
  • John “Jack” Castonguay
  • Patrick E. O'Brien

Abstract

The changing dynamics of the accounting profession have been strongly influenced by emerging technologies and the demand for nontraditional metrics and information by stakeholders and regulators. In this article, we perform an exploratory content analysis to examine the role that blockchain technology can play in enhancing sustainability reporting and assurance. The benefits to companies and assurance professionals in using the distributed ledger technology of blockchain are increased trust, transparency, and traceability, which matches stakeholders' demands as it relates to sustainability reporting. This article identifies and analyzes potential and current use cases of blockchain in the United States and Canada to assist accountants and auditors in preparing and reviewing sustainability information. We highlight how augmenting traditional reporting systems with blockchain can overcome problems with sustainability reporting. We discuss implications for practice in detail—finding that blockchain is well‐positioned to provide reliable tracking and custodial support as it relates to sustainability information currently being self‐reported by many firms, such as greenhouse gas emissions, conflict mineral disclosure, or product provenance, among others. Expanded adoption of blockchains by companies will lead to higher‐quality information being included in sustainability reports and allow assurance professionals to verify a wider range of information, potentially leading to uniform standards in the evaluation of sustainability reports. L'UTILISATION DE LA CHAÎNE DE BLOCS POUR AMÉLIORER L'INFORMATION ET L'ASSURANCE EN MATIÈRE DE DURABILITÉ La dynamique évolutive de la profession comptable est fortement influencée par les technologies émergentes et la demande de mesures et informations non conventionnelles de la part des parties prenantes et des organismes de réglementation. Dans cet article, nous effectuons une analyse de contenu exploratoire afin d'examiner le rôle que la technologie de la chaîne de blocs peut jouer pour améliorer l'information et l'assurance en matière de durabilité. Pour les entreprises et les professionnels de l'assurance, les avantages liés à l'utilisation de la technologie du registre distribué de la chaîne de blocs sont une confiance, une transparence et une traçabilité accrues, ce qui correspond aux demandes des parties prenantes concernant l'information relative à la durabilité. Dans la présente étude, nous cernons et analysons des cas d'utilisation de la chaîne de blocs éventuels et actuels aux États‐Unis et au Canada pour aider les comptables et les auditeurs à préparer et à passer en revue l'information sur la durabilité. Nous montrons de quelle façon l'ajout de la chaîne de blocs aux systèmes de communication d'information conventionnels peut résoudre des problèmes associés à la production de rapports financiers sur la durabilité. Nous discutons en détail des conséquences de cette technologie sur la pratique comptable, en établissant que la chaîne de blocs est en bonne position pour fournir un suivi fiable et une certaine forme de surveillance concernant l'information sur la durabilité actuellement communiquée par de nombreuses entreprises, comme les émissions de gaz à effet de serre, les déclarations sur le minerai de conflit ou la provenance des produits. L'adoption à plus grande échelle de la chaîne de blocs par les entreprises permettra d'intégrer de l'information de meilleure qualité aux rapports sur la durabilité et donnera aux professionnels de l'assurance l'occasion de vérifier davantage de renseignements, ce qui pourrait entraîner l'établissement de normes uniformes pour l'évaluation de l'information sur la durabilité.

Suggested Citation

  • Kathleen M. Bakarich & John “Jack” Castonguay & Patrick E. O'Brien, 2020. "The Use of Blockchains to Enhance Sustainability Reporting and Assurance†," Accounting Perspectives, John Wiley & Sons, vol. 19(4), pages 389-412, December.
  • Handle: RePEc:wly:accper:v:19:y:2020:i:4:p:389-412
    DOI: 10.1111/1911-3838.12241
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    References listed on IDEAS

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    1. Marco Bellucci & Damiano Cesa Bianchi & Giacomo Manetti, 2021. "A literature review on blockchain in accounting research," Working Papers - Business wp2021_04.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    2. Jochen Fähndrich, 2023. "A literature review on the impact of digitalisation on management control," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 34(1), pages 9-65, March.

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