U.S. Auditors to Push Clients on ESG Pledges, Business Strategy

Financial auditors’ New Year’s resolutions may include watching for signs that companies’ environmental risks or carbon-cutting pledges require new disclosures to investors, or even alter their corporate accounting.

Auditors join investors, regulators, and ratings agencies on a long list of those who are increasingly scrutinizing what companies say about environmental, social and governance (ESG) factors—an ad-hoc type of reporting that could soon be mandatory.