Nebraska Attorney General Mike Hilgers is co-leading a coalition of 16 state attorneys general raising concerns about climate-related reporting practices by the nation’s four largest accounting firms. In a letter sent to Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers, the coalition argues the firms’ support for climate-related disclosure standards could conflict with their professional duties of independence and objectivity. The attorneys general contend the firms could financially benefit from expanded reporting requirements while passing increased compliance costs on to businesses and consumers.
The coalition’s letter says the accounting firms have backed climate disclosure frameworks through organizations including the Task Force on Climate-related Financial Disclosures and the Net Zero Financial Service Providers Alliance. Hilgers said those commitments create added burdens for farmers and small businesses and could lead to higher prices for consumers. The attorneys general also allege the firms may be making misleading representations about their independence while failing to disclose climate-related commitments that could create conflicts of interest. Hilgers was joined in leading the effort by the attorneys general of Texas, Alaska and Florida, along with attorneys general from 12 other states.
