ESG – Accounting and SEC reporting implications

Host: Laura McCracken, Partner

Presenters: Eric Knachel, Doug Rand and Kristen Sullivan

1 Overview CPE credit | Specialized Knowledge

Given the interest in ESG matters from investors and regulators, companies should consider ESG when preparing their financial statements. In addition, the SEC’s sample letter highlights the types of comments they may issue to public companies regarding climate-related disclosures—primarily focusing on disclosures in the business, risk factors, and MD&A sections of filings—and we expect it will issue additional guidance in this area in the coming months. We’ll discuss:

• How ESG matters could affect, and be considered in, the financial reporting process
• Implications of the SEC’s sample letter
• ESG communications with stakeholders
• Understanding best practices associated with financial statements and disclosures related to ESG information