• EMBRACING ESG
US – OKLAHOMA
Cost? Benefit? The truth about ESG
Q3 What should accountants be doing now to boost resilience, in relation to sustainability, in their clients’ organisations? Accountants play a key role in enhancing the resilience of their clients' organisations in relation to sustainability. They should be advocating for R&D tax credits that support sustainable quality improvements and informing clients about the benefits of Section 179D for energy-efficient commercial buildings. They should also advise on renewable credits, which can offer significant financial advantages. CCK Strategies works with the non-profit, The Sustainability Alliance, to introduce ESG scorecards to help businesses measure and communicate their performance in sustainability. These scorecards are a method for tracking and reporting on ESG efforts that can be measured. At first glance, ESG practices can appear costly and provide no long-term benefit. But, when combined with proper marketing and recruiting data, accountants can help analyse the opportunities of implementing the strategies. ESG can attract and retain new customers and members of the workforce.
communities are taking considerable strides toward sustainability and cost savings. The workforce, attracted to companies with ESG commitments, plays a vital role in meeting consumer demands and driving innovation. In response, accounting services have expanded to include audit, tax, and CFO consulting that are attuned to the overarching issues of ESG. Responding to workforce demands, an increasing number of companies are adopting eco-friendly practices within their offices. This shift includes substituting Styrofoam cups with reusable water bottles, placing recycling bins in shared areas, and forming committees dedicated to crafting the company's environmental initiatives. The emerging workforce also places high importance on an organisation's philanthropy and engagement with the community, prompting a heightened focus on integrating these aspects into a company's cultural fabric. Sustaining these initiatives necessitates planning and investment. Public accounting firms, along with internal finance and audit departments, are offering consultancy services to assist in the adoption of these strategies. Their goal is to optimise the company's return on investment while maintaining a transparent approach to financial data for its users.
Kaitlin Flinn Partner Haley Legg Assurance Division CCK Strategies, PLLC
Haley Legg, CPA, CIA, CFE, a Sand Springs, Oklahoma native, holds a Bachelor of Science in Accounting and a Bachelor of Business Administration in Finance from the University of Central Oklahoma. As a Certified Public Accountant, Certified Internal Auditor, and Certified Fraud Examiner, Haley specialises in Audit & Assurance Services, focusing on Healthcare, Construction, Manufacturing, Software, and Non-profit sectors. Her expertise extends to Business Advisory Services, Corporate Governance & Compliance, Data Privacy & Security, Forensic Accounting, and White-Collar Crime. Actively engaged in her community, Haley serves as Treasurer for Global Oklahoma and supports organisations like the Community Foodbank of Eastern Oklahoma. Residing in Sapulpa with her family, Haley enjoys exploring Crypto and Digital Asset Management, attending professional discussions, and pursuing her interests in soccer, reading, crocheting, and lake outings.
Q1 Is ESG reporting mandatory or encouraged in your jurisdiction? Environmental, Social, and Governance (ESG) reporting is an evolving landscape in the United States. In Oklahoma and Texas, ESG reporting is not mandatory but is encouraged to maintain transparency and foster stakeholder trust. However, companies based in Oklahoma and other regions should be aware that if they conduct business in other states, California for example, they may be subject to that state's specific ESG regulations. Effective in 2024, the Securities and Exchange Commission (SEC) has mandated that publicly traded companies disclose certain ESG factors in a Company’s annual report. As ESG becomes part of the disclosure requirements, the scope of financial statement audits has expanded to incorporate these elements as well. This highlights the critical impact of ESG on the financial results of an organisation – the cost of compliance, but also the impact of perception on the shareholder value. Industries such as Oil & Gas, manufacturing, chemical blending, and others with a high environmental impact face increased pressure to diversify into renewable energy sources. The United States Congress has recognised the need for renewable energy and created renewable energy tax credits and incentives that companies can apply
to their federal tax returns. Some of these credits can be generated or bought and sold like a commodity. The social implications of ESG are far-reaching. Pressure from consumers to be good stewards plays a significant role in how a company positions their products. This has led to greater involvement in communities and improved transparency and equality in hiring and promoting employees. As each of the other two aspects of ESG have evolved, the expectation of a company’s governance to uphold these values has also increased. More governing bodies are being held responsible for the actions of their company, requiring them to engage more deeply in the operations and broaden their understanding and education. Although ESG reporting is mandatory only under certain conditions, the evolving nature of this practice is encouraging voluntary disclosure. Q2 How is client and consumer demand driving ESG expectations? Consumer and client demands are pivotal in driving ESG expectations. While these demands have not yet translated into explicit regulations, they have influenced business strategies significantly. In Oklahoma municipal governments are transitioning their fleets to more sustainable options, and tribal
+1 (918) 491-4036 haley@cckcpa.com irglobal.com/advisor/haley-legg-cpa
Kaitlin Flinn, Partner at CCK Strategies, holds a Bachelor's degree in Accounting from Oral Roberts University and a Master's in Taxation from the University of Tulsa. Kaitlin is dedicated to empowering entrepreneurs by providing the critical insights necessary for their success, guiding them with tailor- made strategies for growth. Kaitlin offers her extensive knowledge in entity formation and structure, strategic tax planning, transfer pricing, R&D incentives, and multi-state compliance. Kaitlin's drive to strengthen worldwide connections has led her to serve as the executive board chair of the Tulsa Global Alliance, where she is an advocate for cultural exchange and international business cooperation. Recognised for her significant contributions to the field of accounting, Kaitlin has been honoured with the Trailblazer Award from the OSCPA, highlighting her impact and leadership in the industry.
About us... cckcpa.com CCK Strategies is a unique firm that connects globally by working with companies headquartered on four continents with operations in over 25 countries. CCK export revenue from international clients has increased approximately 350% over the period 2013 to 2023. This increase in international sales has been a principal driver in CCK employment rise over the period to over 125 total staff, making CCK one of the largest CPA firms in Oklahoma. The continued growth brings expertise to clients with a variety of business needs in international business consulting and planning, IC-DISC implementation, foreign tax credits, outbound and inbound structure planning, worldwide tax minimisation planning, IRC 965 Transition Tax compliance, Global Intangible Low-Taxed Income compliance, transfer pricing analysis, ASC 740 (FAS 109/FIN 48) and IFRS/ GAAP convergence.
CCK Strategies is a non-traditional public accounting and business consulting firm, founded in 1997 by three young partners motivated to build a new type of CPA firm. The CCK Strategies logo reflects the desires of the Partners to focus on international cultures, relationships and business opportunities while making a difference in our local, state and national and global economies. CCK looks for unique lines of business while working to maintain the highest quality in corporate values and client service. CCK specialises in working with entrepreneurs. With over 125 employees and offices in Tulsa, Oklahoma and Frisco, Texas, CCK’s growth mindset creates opportunities to work with a diverse group of clients. CCK’s success can be attributed to a few fundamental principles of service, value and care.
+1 (918) 491-4036 Kaitlin@cckcpa.com irglobal.com/advisor/kaitlin-flinn
Learn more about CCK Strategies at www.cckcpa.com
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