Deloitte branch in Beijing fined

The Chinese finance minister suspended the work of the Beijing unit of the accounting firm Deloitte for three months after “failures” were discovered during the financial company China Huarong Asset Management audit.

The Financial Times reports that China Huarong, one of the country’s largest debt management firms, received a state bailout in 2021 after months of delaying the announcement of a 103 billion yuan ($16 billion) loss.

According to an official statement, the ministry’s report showed that Deloitte failed to fulfill its accounting duties, including the quality assessment of China Huarong Asset Management.

Deloitte’s Beijing branch will also have to pay a fine of 211.9 million yuan ($31 million). China Huarong and investment companies associated with this firm received a fine for failing to establish risk controls and “dressing up” accounting data.

Deloitte: Most organizations increased investment in sustainability over the past year

Deloitte’s latest 2023 sustainability report, Accelerating the Green Transition, reveals that CEOs prioritize climate change for their organizations amid global uncertainty.

Many CEOs ranked climate change as one of the three most important issues, ahead of seven others, including innovation, talent, and supply chain challenges. Furthermore, 75 percent of CEOs said their organizations increased investment in sustainability over the past year, and nearly 20 percent said they increased investment “significantly.”

The report also shows key recommendations for organizations to help close the gap between societal aspirations and performance to rise progress toward a low-carbon economy.