Chartered Accountants and the Progression to Sustainability Reporting and Assurance: Evidence from Italy

Abstract

Sustainability Reporting (SR) is reshaping corporate accountability and the accounting profession. Yet, limited evidence exists on how Chartered Accountants (CAs) engage with this transition, particularly in the context of Small and Medium-Sized Enterprises (SMEs). This study investigates the current and prospective role of Italian CAs as pivotal agents in SR and assurance, examining their engagement, expected future opportunities, and readiness to support the transition. Drawing on a structured survey of 159 CAs, the study provides empirical evidence from Italy, a context marked by recent SR regulation, the institutionalisation of assurance, and a corporate landscape dominated by SMEs. The findings show that current engagement is still marginal. Most respondents serve micro and small firms that remain outside direct mandatory reporting requirements, while client demand for sustainability services is weak. CAs also report limited sustainability-related knowledge, low assurance experience, and fragmented training pathways. However, many respondents expect demand to increase due to regulatory developments, supply-chain pressures, and the growing role of sustainability information in finance. The results reveal four interconnected barriers: structural barriers linked to the SME-dominated client base, market barriers stemming from limited client demand, professional barriers stemming from insufficient ESG competence, and cultural barriers associated with a traditional financial conception of accounting. The study contributes by shifting attention from reporting entities to professional intermediaries and by framing SR as a matter of professional identity, jurisdiction, and capability-building, rather than as a purely regulatory compliance exercise. Policy implications highlight the need for targeted professional education, stronger collaboration between universities and professional bodies, and institutional support to help CAs translate sustainability regulations into practice for SMEs.