Two SEC Commissioners Frown on Accounting Rules for ESG Issues

Introducing sustainability standard-setting to the job list of organizations that set US accounting rules risks degrading the groups’ independence and effectiveness, two of the five SEC commissioners warned in an unusual letter issued Monday.

Securities and Exchange Commissioners Hester Peirce and Mark Uyeda were responding to a draft stratetic plan from the Financial Accounting Foundation, which oversees the Financial Accounting Standards Board and the Governmental Accounting Standards Board. The plan includes a section saying the foundation should pay attention to whether US rulemakers need to play a role in the much-watched arena of environmental, social, and ...