Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Sustainability Reporting

Climate Goals & Targets

Environmental Challenges

• Complexity of ESG drivers (stakeholder expectations, regulations)
• Uncertainty in the ESG ecosystem
• Lack of commonly accepted standards (emerging)
• Competition from non-CPA providers in assurance
• Knowledge gap between CPAs and other service providers
• Difficulty in quantifying the return on ESG investments for clients
• Perception of mandatory reporting and assurance as compliance burdens

Mitigation Strategies

• Advocacy for global sustainability reporting standards (ISSB)
• Development of CPA assurance standards and resources for ESG reporting
• Partnerships with ESG consulting groups and technology companies
• Emphasis on the value of ESG information for improved decision-making
• Education and training programs for CPAs on ESG issues
• Highlighting the benefits of connecting sustainability assurance with financial statement audits

Supply Chain Management

Responsible Procurement

• Amazon’s Supply Chain Standards Manual
• Walmart’s Supplier Expectations Compliance Areas
• Federal Supplier Climate Risks and Resilience Rule

Climate-Related Risks & Opportunities

Physical Risks

• Physical changes caused by climate change

Transition Risks

• Cost of transitions away from fossil fuels

Reporting Standards

Frameworks Used: ISSB, GRI, SEC proposed rules, ESRS, California climate-change reporting laws