A coalition of 16 state attorneys general has opened an investigation into the Big Four accounting firms, alleging they forced climate‑related disclosures on client companies. The probe targets Deloitte, KPMG, Ernst & Young and PriceWaterhouseCoopers over claims they breached professional independence.
Investigation Details
Nebraska Attorney General Mike Hilgers, who co‑led the coalition, said the firms’ climate commitments impose burdensome reporting requirements on farmers and small businesses, driving up service costs that ultimately hit consumers. He warned that higher prices for food, energy and everyday goods will follow.
Together the firms conduct about 80 percent of all public company audits, according to Becker, an education organization for professionals.
The attorneys general’s letter alleges the firms violated their duty of independence by championing climate disclosures that conflict with materiality, neutrality and error‑avoidance standards. Such actions, the letter warned, could expose the firms to conflict‑of‑interest charges and violations of state laws against deceptive acts and practices.
The firms previously belonged to the U.N.–sponsored Net Zero Financial Service Providers Alliance, which required members to align products with the Paris Agreement’s net‑zero goals. In January the alliance announced it was dissolving, with members now pursuing activities independently.
Former GFANZ‑sponsored net‑zero groups also included JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, Morgan Stanley, Wells Fargo, BlackRock, Vanguard, State Street and major insurers. Since 2024, these alliances have been dismantled amid accusations of collusion and antitrust scrutiny from conservative lawmakers, state treasurers and attorneys general.
Regulatory Context
The Trump administration has moved to repeal Biden‑era climate policies and, in January 2025, withdrew the United States from more than 60 U.N. climate‑affiliated organizations, calling them contrary to national interests. Despite these rollbacks, companies remain obligated to report greenhouse gas emissions under European Union and California regulations.
The European Union’s Corporate Sustainability Reporting Directive, effective since 2023, obliges roughly 50,000 companies worldwide to disclose climate risks. California’s Corporate Greenhouse Gas Reporting Program, enacted in 2023, requires firms with annual revenues above $1 billion to report emissions.
The Epoch Times sought comment from Deloitte, KPMG, Ernst & Young and PriceWaterhouseCoopers but received no response before publication. The firms have not commented publicly on the investigation.
