Introduction to Environmental, Social and Governance (ESG) for Accountants
Author: Lynn Fountain
| CPE Credit: |
2 hours for CPAs |
Environmental, Social, and Corporate Governance (ESG) refers to the factors in measuring the sustainability and societal impact of an investment in a company or business. Analysis of these criteria can help determine the future financial performance of companies.
ESG criteria are a set of standards for a company’s operations that today’s socially conscious investors use to screen potential investments.
- Environmental criteria look at how a company performs as a steward of nature in protecting the planet
- Social criteria examine how the company manages relationships with employees, suppliers, customers, and the communities where it operates
- Governance deals with a company’s leadership, the pay of its executives, audits, internal controls, and shareholder rights
Investors’ demand enhanced information about how companies are approaching environmental sustainability. (Sustainability accounting). The foundation of sustainability reporting is for an organization to identify and prioritize its impacts on the economy, environment, and people - to be transparent about their impacts.
This course is an introduction to the topic of ESG and what accountants and management should know.
Publication Date: February 2023
Designed For
Accountants and Finance professionals, Auditors, Executive management/ Board members and Audit Committee members, and Legal and Compliance professionals
Topics Covered
- Evaluate the concepts and examine each component of ESG
- Examine a framework for ESG
- Determine the responsibilities of accountants, management and the board for ESG concepts
- Examine various accounting considerations
- Consider impacts on financial reporting and disclosure controls and procedures (DCP)
- Examine how to measure ESG performance
Learning Objectives
- Identify and evaluate the concepts involved in ESG
- Identify responsibilities of accountants, management and the board
- Identify and examine various accounting considerations
- Identify and consider impacts on financial reporting and DCP
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
