Big Four accounting firms face scrutiny from state attorneys general over climate disclosures

A coalition of 16 state attorneys general, including officials from Nebraska, Florida, Alaska, and Iowa, has issued a letter to the ‘Big Four’ accounting firms—Deloitte, Ernst & Young (EY), KPMG, and PricewaterhouseCoopers (PwC)—challenging their commitments to international climate initiatives.

The coalition alleges that the firms’ support for frameworks such as the Task Force on Climate-related Financial Disclosures and the Net Zero Financial Service Providers Alliance may conflict with their professional duties of independence, integrity, and objectivity. The attorneys general argue that these climate-related disclosure requirements impose burdensome costs on clients, including farmers and small businesses, which are ultimately passed on to consumers.

Furthermore, the group suggests that the firms' undisclosed climate activism could violate state consumer protection laws by making deceptive representations regarding their independence during audits. The officials are seeking explanations regarding how these commitments align with their fiduciary responsibilities and whether the increased compliance costs constitute a conflict of interest.