August 01, 2022
☀️ Welcome to August, climate friends. Summer may be winding down for those of you on the East Coast, but us West Coasters are just getting started.
Let's get into it.
1 big thing: Disclosures rose well before SEC stepped in
Companies were revealing ESG disclosures well before the SEC demanded it, Megan reports.
Why it matters: New findings ding disclosure opponents' who say that the SEC's new rules would place a burden on businesses.
Details: The Association of International Certified Professional Accountants dug through independent audit data from 2020 for 1,400 companies in a study shared with Axios.
- 51% of the companies indicated they had undergone independent verification of ESG initiatives back in 2019. That rose to 58% in 2020.
- And that comes before SEC disclosure rules requiring transparency around ESG policies at public companies.
Yes, and: The study found 70% of companies opted to stick with their financial auditor firms when it came to ESG audits.
- That's good news for the Big Four — ESG represents a new line of business for accounting firms for the first time since Dodd-Frank.