Mandatory Accounting for Sustainability

The debate on mandatory sustainability accounting explores whether it should apply to listed companies, private entities, nonprofits, or governments. The U.S. already has a materiality-based disclosure regime, but defining financial materiality in sustainability is complex. Expanded reporting could impact markets and corporate behavior, with both intended and unintended effects. Auditing challenges persist, and governments may drive mandates for public interest. Integrated audits may become essential.