Sustainability analysis in fashion retail: accounting models and integrated indicators for performance evaluation [Articol]

Abstract

Purpose of the article: This article examines the transition toward a green and digital economy and its impact on how fashion retail companies report performance. It aims to propose an integrated sustainable accounting model that goes beyond traditional financial accounting by incorporating ESG (Environmental, Social, Governance) indicators correlated with managerial decisions. Methodology: The study employs a comparative analysis of sustainability reporting practices among three international fashion retailers – Inditex, H&M Group, and Zalando. It reviews their approaches to integrating ESG factors with in financial reporting and assesses the benefits and challenges associated with these practices. Conclusions: The integration of sustainable accounting and ESG reporting enhances transparency, reduces reputational risks, and supports competitive advantage in the fashion retail sector. Implementing such models facilitates informed managerial decisions and promotes long-term sustainability. The proposed framework offers a practical tool for fashion retailers in emerging markets, such as the Republic of Moldova, to measure and audit their environmental and social performance effectively. Originality: This study provides a novel framework that links ESG indicators directly with managerial decisionmaking in fashion retail accounting. It enriches the literature by focusing on the sustainable reporting practices of leading international retailers and offers practical insights for implementing similar models in emerging markets. The article further proposes a practical framework tailored for fashion retail companies in the Republic of Moldova, including measurable and auditable sustainability indicators.