The Big Four accounting firms in Japan are ramping up recruitment efforts to meet incoming sustainability disclosure and assurance mandates, which are aligned with the International Sustainability Standards Board’s framework. With these regulations expected to come into effect by April 2027, the workload for auditors is projected to increase by 15% to 20% in the early phase, according to sustainability experts.
However, these firms are confronting significant challenges as they prepare for the mandates. One major issue is the ongoing shortage of Certified Public Accountants (CPAs), which complicates the recruitment process in a competitive labor market. Furthermore, the specifics of the new rules remain undecided, adding to the unpredictability faced by firms in their staffing and compliance strategies.
Despite these obstacles, the affiliates of Ernst & Young, Deloitte, KPMG, and PwC are under pressure to significantly augment their workforce to fulfill the upcoming requirements. The demand for skilled professionals is heightened by the sector-wide emphasis on transparent and standardized sustainability reporting in the region.
This development underscores the broader global trend towards enhancing environmental disclosure norms, as nations strive to adhere to internationally recognized sustainability standards. For further details on the topic, you can read the full article here.