Issue link: https://resources.tangoanalytics.com/i/1522476
Sustainability & Energy Management Simplified Much like the audits of financial statements, third-party assurance from an accounting firm can help ensure that a company's ESG report is of high quality and reliable—and this expertise is in high demand given the increase in regulated sustainability reporting with an emphasis on financial grade data. The U.S. Securities and Exchange Commission (SEC) on March 6 approved a new rule for public companies to disclose emissions and other climate-related details. The SEC estimates the rule will increase spending by filers on external service providers like assurance firms by as much as $907 million annually, an 18% increase over current levels. The American Institute of Certified Public Accountants (AICPA) has even taken steps in recent years to create guidance around conducting an ESG audit. Forward-looking accounting firms should expand their service offerings for clients to provide attestation reports required under the new climate-disclosure rules, verify the accuracy of third-party information (such as supply chain data), verify investments in carbon credits/offsets and renewable energy credits, and audit sustainability reporting processes and controls. Board (ISSB) issued two standards, IFRS S1 and IFRS S2 designed to form a global baseline for sustainability disclosure. All of these regulations present opportunities for CPA firms to assist their clientele. Accountants ensure that organizations comply with these regulations and standards facilitating comparable, reliable, trustworthy reporting that is on par with financial reports. ASSURANCE DATA INTEGRATION Integrating environmental and sustainability data into existing financial systems can be complex. CPAs can collaborate with IT teams to develop streamlined processes and software solutions that facilitate seamless data integration. Customized software solutions can simplify the integration of sustainability data into financial systems, making the process more efficient and accurate for accounting firms.