Sixteen U.S. state attorneys general have raised concerns with Deloitte, EY, KPMG and PwC over their involvement in climate-related disclosure initiatives, bringing renewed attention to the role of accounting firms in the evolving sustainability reporting landscape.

The states questioned whether commitments made by the Big Four to climate-related reporting initiatives could create tensions with their professional responsibilities and obligations to maintain independence. The concerns reportedly extend to participation in initiatives including the Task Force on Climate-related Financial Disclosures (TCFD), the Net-Zero Financial Service Providers Alliance and support for the International Sustainability Standards Board (ISSB).

The development comes as companies and regulators continue to expand the role of sustainability information within corporate reporting. Climate-related disclosures are increasingly connected to financial risks, governance processes and investor decision-making, increasing the importance of reliable and independently prepared information.

For accounting and assurance firms, the issue highlights the balance between supporting emerging reporting frameworks and maintaining clear professional boundaries. As sustainability reporting becomes more integrated with mainstream financial reporting, questions around auditor independence, professional judgment and the appropriate role of accounting firms are likely to receive greater scrutiny.

The dispute also reflects the broader regulatory uncertainty surrounding climate-related disclosures in the United States. While some jurisdictions continue to develop climate reporting requirements, others are challenging or reconsidering the scope of such measures.

The concerns raised by the states do not by themselves change existing climate reporting standards or eliminate companies’ reporting obligations. Instead, they highlight an ongoing debate over how sustainability reporting frameworks should be developed, implemented and supported while maintaining appropriate governance and professional independence.
The issue could remain relevant for companies, auditors and standard-setters as the global sustainability reporting environment continues to evolve.