Accountants Sound Alarm Over Risk of ESG Reporting Errors (2)

Europe’s top accountancy association says a lot of companies won’t be able to provide reliable ESG statements under rules that just took effect.

Starting this year, European companies are required to estimate what portion of their business is eligible to be defined as green under the bloc’s taxonomy. It’s a preliminary step toward getting corporations, banks and asset managers ready for stricter ESG disclosure requirements in coming years as the EU tries to steer more capital into assets that live up to environmental, social and corporate governance goals.

But behind the scenes, firms have been struggling. As a result, many ...