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"How do CPAs integrate ESG factors in financial reporting amid a rising focus on sustainability?"

In response to the escalating emphasis on sustainability, CPAs are integrating environmental, social, and governance (ESG) factors into accounting and financial reporting practices. This involves incorporating metrics that assess a company's impact on the environment, its relationships with stakeholders, and its governance structure. The integration is driven by the growing recognition of the significance of non-financial aspects in evaluating a company's overall performance and long-term viability. CPAs play a crucial role in ensuring transparency and accountability, helping stakeholders make informed decisions based on a comprehensive understanding of a company's social and environmental responsibilities. This contributes to a more holistic and sustainable approach to financial reporting.