Companies are increasingly challenged by complex problems facing society in the form of environmental, social, and governance (ESG) commitments and practices. Future CPAs have a critical role in helping companies tackle these issues because of their skill sets and knowledge in organizational governance, compliance, risk management and performance through metrics and targets.

The following briefs explore the foundations of the topic, including ESG issues and how to integrate them into their long-term decision-making, and how to incorporate these issues into internal and external reporting:

• Putting the E in ESG: considers how an organization performs as a steward of nature. This factor includes the nature and extent of non-renewable resources used in production, as well as the release of potentially harmful elements to the air, land, or water.
• Putting the S in ESG: examines how an organization manages relationships with employees, suppliers, customers, and the communities where it operates. Social issues range from human rights, diversity, equity and inclusion, and health and safety to other responsible business practices, such as product marketing, and privacy.
• Putting the G in ESG: deals with an organization’s leadership and effective management of the business. Specific governance considerations include executive pay, regulatory compliance, and shareholder rights, as well as internal controls, and internal and external audits.

Explore the sustainability/ESG resources for practitioners to help them integrate ESG factors into strategy and operations in order to deliver reliable and assured ESG information that drives long-term value creation.

Learn about the value of sustainability assurance services and the role of CPAs as demands for assurance engagements on sustainability or environmental, social and governance information continues to increase.

Review the AICPA’s summary of the SEC Proposed Rule on climate-related Disclosures.

Resources to introduce the ESG concept to your students

• This article discusses how sustainability themes were infused into an undergraduate managerial accounting courses using Adam Minter’s 2013 book Junkyard Planet, discussion board posts and case analyses.
• Complement your teaching with the business case focusing on ESG issues.

Cybersecurity

• Cybersecurity mini-cases
• Fit cybersecurity into your accounting courses

More resources on Cybersecurity are coming soon!