Significant emphasis has recently been placed on measuring companies from a sustainability perspective by environmental, social, and governance (ESG) scores, resulting in a considerable amount of financial, accounting, business, and management research on the subject. We provide a concise and harmonized systematic literature review of the current trends within this area for a broader range of academic researchers and practitioners. This work comprehensively explains ESG ratings, scores, and reports and aims to summarize how CSR activities are accounted for as non-financial information. The review aims to provide information and a better understanding of the complexity of corporate ESG aspects for those interested in this area. The results suggest that diverse methodologies, subjective elements, and some complexity of ESG measurement exist, leading to companies unconsciously using ESG ratings based on incorrect measures. Scoring methodologies are controversial, highlighting the need for more certainty about the validity of the ratings. ESG ratings need more reliability, and ESG reports do not help increase credibility, transparency, or accountability. Greenwashing emerges from loose regulation, measurement complexity, and the absence of transparency, emphasizing the need for more auditing and regulations in sustainability reporting and rating. Our results also demonstrate that ESG reporting is an ever-growing issue in sustainability and finances, and regulators must focus on it. Inconsistencies and uncertainties exist in ESG ratings and reporting; therefore, education is needed for decision-makers to understand better how this emerging topic works in practice.

This paper investigates the impact of evolving EU sustainability reporting regulations on strategic asset acquisition decisions, focusing on the accounting of leases under different accounting frameworks. Employing a mixedmethod approach, the study combines literature review with a detailed case study comparing accounting treatments of leases under different accounting regimes. Results reveal that regulatory requirements for sustainability disclosures and key performance indicators significantly influence whether entities opt for purchasing or leasing assets, as these choices directly affect certain ratios. The findings highlight that divergent accounting standards can lead to material differences in sustainability reporting outcomes, potentially shaping corporate strategies. Academically, the study underscores the need for greater harmonization between sustainability and financial reporting standards, while practically, it offers guidance for organizations navigating compliance and strategic decision-making in the context of sustainability reporting.

This study investigates the organisational preparedness and challenges Hungarian public interest entities (PIEs) face when implementing the Corporate Sustainability Reporting Directive (CSRD). This paper addresses a novel and relevant aspect of corporate sustainability, providing one of the first systematic, interview-based insights into an area of growing regulatory concern with limited empirical knowledge in the European Union’s evolving sustainability landscape. Through semi-structured interviews conducted with sustainability leaders from eleven companies, this study reveals that regulatory alignment is enhancing reporting transparency, yet transitioning to externally assured non-financial data poses a substantial challenge. Interviewees repeatedly pointed to the assurance process as the forthcoming milestone and one of the most intricate aspects of sustainability reporting. This research suggests that fragmented data systems and rapidly changing reporting standards further impose difficulties for compliance with reporting, which demands greater accuracy, transparency, and methodological rigour. The empirical results offer valuable insights for both practitioners and policymakers.