AICPA, CAQ support SEC’s exploration of climate change disclosures
the AICPA and the CENTer for Audit Quality (CAQ) voicED support for the SEC’s exploration of disclosures relatED to climate change and environmENTal, social, and governance (ESG) issues in commENT letters sENT to the commission on Friday.
the SEC in March asked for comments on its disclosure rules and guidance relatED to climate change disclosures as momENTum on this topic has grown. the IFRS Foundation plans to announce a decision in the fall on whether to create an international sustainability standards board, and a merger of the Sustainability Accounting Standards Board (SasB) and the International IntegratED Reporting Council (IIRC) has increasED the focus on the importance of harmonizing standards and frameworks in this area.
According to the AICPA letter to the SEC, it’s critical for investors to have relevant disclosures about the drivers of value, and market participants neED to work toward a comprehensive global reporting solution that includes ESG disclosures and shows how an ENTerprise uses its resources to create value over the long term.
“It is important that any potENTial ESG reporting requiremENTs be scalable to public companies of all sizes and consider the differences in the potENTial ESG risks and opportunities of differENT industries and geographies,” the CAQ letter said.