Businesses are starting to be measured and evaluated on more than just their balance sheet. Join Jennifer as she delves into the world of sustainability and how accounting firms are uniquely positioned to take on this new service, offering a deeper view into your clients and the health of their organization.We will define what sustainability in business means in today's world and why it is quickly becoming the biggest disruptor. You'll learn how accounting firms fit into this forward-thinking puzzle and get a focused look at one of the fastest-growing ESG (Environmental, Social and Governance) frameworks, B Corporation certification.

Jennifer Harrity

Businesses are starting to be measured and evaluated on more than just their balance sheet. Join Jennifer as she delves into the world of sustainability and how accounting firms are uniquely positioned to take on this new service, offering a deeper view into your clients and the health of their organization. We will define what sustainability in business means in today&#39;s world and why it is quickly becoming the biggest disruptor. You&#39;ll learn how accounting firms fit into this forward-thinking puzzle and get a focused look at one of the fastest-growing ESG (Environmental, Social and Governance) frameworks, B Corporation certification.

The Intersection of Accounting & Sustainability 2023 | 1000002315

The Intersection of Accounting & Sustainability 2023

Despite the rising use of environmental, social, and governance (ESG) ratings, there is substantial disagreement across rating agencies regarding what rating to give to individual firms. As what drives this disagreement is unclear, we examine whether a firm’s ESG disclosure helps explain some of this disagreement. We predict and find that greater ESG disclosure actually leads to greater ESG rating disagreement. These findings hold using firm fixed effects and using a difference-in-differences design with mandatory ESG disclosure shocks. We also find that raters disagree more about ESG outcome metrics than input metrics (policies), and that disclosure appears to amplify disagreement more for outcomes. Last, we examine consequences of ESG disagreement and find that greater ESG disagreement is associated with higher return volatility, larger absolute price movements, and a lower likelihood of issuing external financing. Overall, our findings highlight that ESG disclosure generally exacerbates ESG rating disagreement rather than resolves it.

Despite the rising use of environmental, social, and governance (ESG) ratings, there is substantial disagreement across rating agencies regarding what rating to give to individual firms. As what drives this disagreement is unclear, we examine whether a firm’s ESG disclosure helps explain some of this disagreement. We predict and find that greater ESG disclosure actually leads to greater ESG rating disagreement. These findings hold using firm fixed effects and using a difference-in-differences design with mandatory ESG disclosure shocks. We also find that raters disagree more about ESG outcome metrics than input metrics (policies), and that disclosure appears to amplify disagreement more for outcomes. Last, we examine consequences of ESG disagreement and find that greater ESG disagreement is associated with higher return volatility, larger absolute price movements, and a lower likelihood of issuing external financing. Overall, our findings highlight that ESG disclosure generally exacerbates ESG rating disagreement rather than resolves it.

Why is Corporate Virtue in the Eye of The Beholder? The Case of ESG Ratings | 1000001584

Why is Corporate Virtue in the Eye of The Beholder? The Case of ESG Ratings

Your clients depend on you more than ever to help them reduce risk and position themselves for financial success in the future. This course is to understand the latest on personal finance.

Samuel Adams

Sarah Adams

Your clients depend on you more than ever to help them reduce risk and position themselves for financial success in the future. This course is to understand the latest on personal finance.

Integrating ESG Into Your Business 2024-25 | 1000003435

Integrating ESG Into Your Business 2024-25

Explore the world of ESG ratings and sustainability accounting in this series. Understand why rating agencies often disagree on ESG scores despite increased disclosure, and discover the impact on market volatility and financing. Learn how accounting firms are adapting to measure organizational health beyond finances and gain insights into navigating personal finance in the era of ESG considerations and new tax laws.*This product cannot be purchased with Share100 or CPE select.

Explore the world of ESG ratings and sustainability accounting in this series. Understand why rating agencies often disagree on ESG scores despite increased disclosure, and discover the impact on market volatility and financing. Learn how accounting firms are adapting to measure organizational health beyond finances and gain insights into navigating personal finance in the era of ESG considerations and new tax laws. *This product cannot be purchased with Share100 or CPE select.

ESG Sustainability Bundle

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