This fall, students at the Whitman School will have the opportunity to explore their interest in environmental, social and governance (ESG) issues and how they apply to the field of accounting. A new course, ESG Reporting, created by Assistant Professor of Accounting Sebastian Tideman-Frappart, stems from one of his primary areas of research, as well as his interest in preparing students for a much sought-after skill set that has recently emerged in professional accounting. 

“This really began with me wanting to do relevant and impactful research to help improve society and companies’ behaviors. Stakeholders—from employees to investors to government officials—want to know how companies are doing in terms of ESG-related issues that range from treatment of employees to mitigation of pollution to whether sustainable practices are maintained throughout a business’s entire supply chain,” says Tideman-Frappart. “There are still a lot of unknowns in the ESG space, particularly around how we measure and report, as well as the fundamental question of how this information might change a company’s processes, and with that comes a great deal of potential for those who can contribute to the answers.” 

According to Tideman-Frappart, ESG standards are loosely regulated in the U.S., in part because the topic has become highly politicized, and efforts are trailing behind in comparison to other countries, particularly those in the European Union. However, ESG initiatives are increasingly necessary to successful business practices as U.S. companies realize their importance. They see the benefits of using this type of data to determine risk, further innovation and gain other competitive advantages, and to attract top employees, establish safer, more sustainable workplaces and satisfy the interests of stakeholders.  

“Of course, most companies are saying, ‘We’re doing great’ in these areas, but that has to be verifiable. Keeping track of ESG metrics has become a key accounting task, and those responsible need to know how to confidently analyze and present numbers that are accurate and transparent, and to figure out how to best get that information to various stakeholders,” he explains. “The Big 4 are already demanding these skills, and there has been a fundamental shift in the area of sustainability. How a company performs is not just going to be measured in dollars anymore, meaning that thousands of companies will need employees who can work with this kind of data.” 

Tideman-Frappart designed this course for students interested in how accounting relates to ESG standards, but it is not limited to accounting majors. The 3-credit elective has more than 30 students enrolled for fall 2024. It will apply financial reporting concepts to ESG standards, and discussions will revolve around ideas that students may not have considered as within the scope of accounting, such as carbon emissions, human rights, racial diversity and more. Students will work with data and prepare basic ESG metrics through a hands-on curriculum designed to be interactive and experiential with many topics stemming from Tideman-Frappart’s own research. 

“The current generation of students has an increasing awareness around climate change and other sustainability concerns, and this course will help them see how this applies to the future of business,” he says. “It is my hope that ESG Reporting will give Whitman students an advantage by teaching them some of the skills necessary to pursue the career opportunities that are becoming available in this emerging space.”