​IIA Commends SEC on Climate Change Disclosure Efforts

The Institute of Internal Auditors, the internal audit profession’s globally recognized advocate, educator, and provider of standards, guidance, and certifications, today commended the U.S. Securities and Exchange Commission for its efforts to address climate change disclosure and affirmed that internal audit is best positioned to provide assurance over climate change or ESG compliance programs, given its role as an objective advisor.

“Because of its holistic view and understanding of risks across an organization, internal audit provides informed assurance on effective governance structures and systems of internal controls, that, in turn, ensures complete, accurate, and reliable information around climate change disclosures as well as any future disclosures the Commission may consider,” IIA President and CEO Anthony J. Pugliese, CPA, CGMA, CITP, wrote to SEC Chair Gary Gensler.

In his letter, Pugliese also urged that data assurance be part of any new disclosure requirements, noting that “to be truly valuable and reliable, the climate information required by the SEC must be trustworthy,” gained through controls that are designed properly and operating effectively.

Pugliese’s full letter to the Honorable Gary Gensler is available on The IIA’s website.