Environmental, social, and governance (ESG) matters continue to be important to investors and capital markets, and the possibility of Securities and Exchange Commission (SEC) regulation mandating additional disclosures remains a hot topic.
But the potential effects of ESG matters on a company’s financial accounting and reporting are not a future consideration. Existing accounting guidance and the current regulatory environment call for companies to evaluate ESG and incorporate related risks into their financial reporting today, regardless of what future changes to standards or regulations might occur.
