U.S. Attorneys General pressure Big Four firms over climate disclosures

Attorneys general from 16 Republican-led U.S. states have issued a formal warning to the ‘Big Four’ accounting firms—Deloitte, EY, PwC, and KPMG—regarding their involvement in climate-related financial disclosure initiatives.

The states allege that the firms' support for frameworks such as the International Sustainability Standards Board (ISSB) and the Task Force on Climate-related Financial Disclosures (TCFD) may violate auditor independence and state laws. The officials argue that promoting increased climate disclosures creates a conflict of interest, as these mandates generate additional revenue for the firms through new auditing and consulting services.

The communication includes 38 specific questions demanding accountability. The attorneys general are questioning whether the firms used discredited climate scenarios, such as RCP 8.5, to influence audit practices and whether they re-evaluated their positions after certain scientific papers were retracted. The core of the inquiry asks whether these firms are acting as ‘independent auditors’ or as ‘decarbonization advocates’ seeking to expand their own markets.