CAQ Statement on SEC ESG Disclosure
Friday, May 29, 2020
The Securities and Exchange Commission’s Investor Advisory Committee recently issued a recommendation stating that the time has come for the Commission to begin in earnest an effort to update public company reporting requirements to include material, decision-useful information on environmental, social, and governance (ESG) practices. This recommendation was informed by activities and engagement of the SEC’s Investor Advisory Committee over the past several years.
Regardless of the recommendations of the SEC, the fact remains that investors and other stakeholders are increasingly relying on company-prepared information on ESG practices to make important investment decisions.
In our public interest role, US public company auditors promote the flow of reliable information for decision-making. Like the audits of financial statements and internal control over financial reporting, third-party assurance from a public company audit firm enhances the reliability of ESG information.
Now is the time for stakeholders – particularly auditors, investors, public company board members, and public company executives – to rally around a globally accepted system built from existing standards and frameworks that presents ESG information in a relevant, comparable and reliable way.
About the CAQ
The CAQ is an autonomous, nonpartisan, and nonprofit public policy advocacy organization dedicated to enhancing investor confidence and public trust in the global capital markets. Our mission is to foster high-quality performance by public company auditors; convene and collaborate with other stakeholders to advance the discussion of critical issues requiring action and intervention; and advocate policies and standards that promote public company auditors’ objectivity, effectiveness, and responsiveness to dynamic market conditions. Based in Washington, DC, the CAQ is affiliated with the American Institute of CPAs.
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