Apr. 17, 2022
To Whom it May Concern, In order to have universal accounting standards for ESG, companies would have to put and abundance of money toward implementing these efforts into the companies. Not only would companies have to keep track of their ESG, but auditing companies would also then have to implement training in order to be able to audit the ESG. This would make the implementation cost businesses an abundance of money. Although, pricey, I believe the implementation of ESG is crucial. Companies have already begun to be held accountable for their impact on the environment. Due to the ESG reporting, many companies are greenwashing and making their companies seem more environment friendly than they actually are. Furthermore, the ESG standards would be focused more on the auditing of their ESG. There are not specific categories that they need to report on, just that they are reporting credible information on the targets that they set themselves. Therefore, if a company is already informing investors on their sustainability, and doing it correctly, they will not need to spend too much time on implementing these new standards. In the worlds condition, it is necessary companies start taking responsibility for the pollution the inflict. Investors want the most clarity they can have in a company, and it will definitely be a large factor what a company does to ensure the health of the environment. Overall, although it may take some time and effort, and be an investment for the company I think it is important for businesses to have complete clarity on their financial statements. This includes their impact on the Earth we call home. As SEC proposal advances, I predict that most investors will take a companys ESG on the into account before investing, only prompting the need for them to be standardized. https://hbr.org/2022/02/we-need-universal-esg-accounting-standards