Companies parachute accountants in to fix flawed ESG data

Matthew Franker's commentary appeared in the Financial Times in an article covering the proposed climate rule that the SEC anticipates to be finalized within months.

The rule demands disclosure, not just of a company’s own emissions, but also in many cases, the disclosure of so-called Scope 3 emissions, which are those produced indirectly by suppliers and customers. Matthew said smaller clients may want to wait to see what happens, but larger companies are already preparing by involving their internal audit teams and external auditors such as the Big Four.

“Having [your] internal audit function kick the tires will help put more rigor around what is being said,” Matt observed. “The next step is getting third-party assurance. Most large companies are looking to do that, especially if they have aggressive greenhouse gas target reductions.”

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