Tag: climate risk

The International Auditing and Assurance Standards Board issued an exposure draft of General Requirements for Sustainability Assurance Engagements – International Standard on Sustainability Assurance (ISSA) 5000, inviting comments by December 1, 2023.  Douglas Hileman Consulting LLC (DHC) submitted comments, with two topics of interest to preparers and users of these reports. 

Why the push for assurance standards?          Sustainability reports have been around for over 25 years. Sustainability factors affect companies’ prospects for obtaining capital, delivering financial performance, as well as their effect on the environment and society.  They have matured over the years.  Even so, the scope, content, metrics, and rigor leave much to be desired by users – notably investors.  Some regulations, including the EU’s Sustainability Reporting Standards (ESRS) and California’s SB 253 (disclosure of greenhouse gas emissions) will require external assurance within a few years.  Read More

“This is Not Fine” Says LA Controller’s office.  Alas, it applies to the report itself.  A report can be impactful or a missed opportunity.  For how NOT to write a report, read more. 

Memo to those hoping that an SEC will not require disclosure of Scope 3 Greenhouse Gas (GHG) emissions in a final climate disclosure rule:  It won’t matter.  Your organization will need to calculate and report Scope 3 emissions.  It will be a massive undertaking.  Continuing to postpone effort much longer may cost you, in terms of direct costs and indirect impact on company value.  Read to understand the folly of inaction.

SEC proposed climate disclosure rules in March 2022 – fifteen months ago, at this writing.  Several provisions caused uproar and gnashing of teeth; perhaps none so much as the requirement to disclose Scope 3 greenhouse gas (GHG) emissions.  Many have deferred meaningful efforts to compile Scope 3 emissions, often expressing three types of hope.    (Read More)