Reporting
A coalition of 16 Republican state attorneys general sent a letter on August 24 to KPMG, Ernst & Young, PwC, and Deloitte, alleging that these accounting firms may have violated audit independence obligations by participating in sustainability organizations and initiatives. The letter was jointly led by the attorneys general of Nebraska, Alaska, Florida, and Texas, and was copied to the Chairman of the U.S. Securities and Exchange Commission (SEC) and the head of its enforcement division.
The latest report shows that the number of Black CFOs in major U.S. companies has dropped 25% from its 2021 peak, indicating a stagnation in diversification efforts. Although the number of Asian and Hispanic CFOs has increased, the overall share of non-white executives has declined, reflecting a reversal in corporate DEI policies under the influence of Supreme Court rulings and executive orders.
Led by New York Attorney General Letitia James, 20 Democratic state attorneys general sent a letter to the U.S. Securities and Exchange Commission on August 27, rebutting Republican state attorneys general's investigation into credit rating agencies' ESG risk factors, noting that their conclusions are based on factual inaccuracies and distortions.
According to the latest Morningstar report, U.S. sustainable funds achieved nearly $3 billion in net inflows in Q2 2025, marking the first positive inflow since 2022 and ending 14 consecutive quarters of net outflows. However, inflows were concentrated in passive strategies, with active funds still facing redemptions, and fund closures outnumbered new launches.
French energy giant TotalEnergies announced on Monday that it has acquired all of Shell's operational and under-development onshore renewable energy assets in Europe, totaling approximately 4 gigawatts. At the same time, TotalEnergies sold a 50% stake in a 1.2-gigawatt asset portfolio to investment firm KKR, with the portfolio valued at 1.8 billion euros (approximately 2.07 billion US dollars). Shell has been continuously divesting its renewable energy business, having sold India's Sprng Energy last month.
A survey of 124 senior sustainability professionals shows that compliance and reporting have become the core work of teams in this field, despite continued budget and staffing cuts. The proportion citing regulatory requirements as a driver has doubled to 76% over the past decade, while CEO engagement has dropped from 55% to 36%. The report recommends that teams reflect on their enabling role within companies and remain vigilant about the social and environmental risks posed by AI.
The Greenhouse Gas Protocol (GHG Protocol) and the International Organization for Standardization (ISO) announced on July 29 that they will merge their carbon emission accounting standards to create a unified global corporate carbon accounting standard. The merger plan covers GHG Protocol's Scope 1, 2, and 3 standards and the Actions and Market Instruments workstream, integrating with the ISO 14064-1 standard. The draft is expected to be released in the second quarter of 2027, with the final standard planned for the fourth quarter of 2028.