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Glasgow COP26: Investors warn Big 4 auditors to include climate accounting

Glasgow COP26: Investors warn Big 4 auditors to include climate accounting

Major investors have warned the world’s top four audit firms they will vote to stop the firms working for the companies they invest in at AGMs from next year if audits do not integrate climate risk.

The challenge, laid out in letters from an investor group managing around $4.5 trillion that were seen by Reuters, marks an escalation in the group’s efforts to ensure investors were armed with robust information. Ahead of the COP26 climate talks in Scotland, the group had called for governments to force companies and auditors to file accounts in line with the world’s goal of limiting global warming by mid-century.

The letters dated November 1 and sent to Deloitte, EY, KPMG and PwC by the investor group pointed to recent research showing more than 70 per cent of assessed 2020 audits had fallen short.

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