Appalachian State University Accounting Professor Dr. Tammy Kowalczyk has an article forthcoming in Today’s CPA titled “Assessing the Materiality of ESG Risks – Guidance for CPAs.”
The article provides guidance on how CPAs can use a double materiality assessment to identify potential financial risks arising from environmental, social, and governance (ESG) issues.
It explains how ESG risks can affect financial reporting both through impacts on a company—such as climate‑related disruptions—and through impacts created by the company, such as labor practices that may lead to reputational or regulatory consequences. By applying a double‑materiality perspective, the article argues that CPAs can gain a clearer understanding of how ESG issues translate into material financial risk, strengthening disclosure and reporting practices.
Dr. Tammy Kowalczyk
Dr. Tammy Kowalczyk