laws & Statutes

Federal and state environmental laws establish long-term, and often perpetual, responsibility for investigating, remediating, monitoring, and retiring contaminated assets. Core statutes include CERCLA and RCRA, with liability regimes that often persist through asset transfers, corporate restructuring, and closures.
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These laws create legally enforceable obligations that must be continuously identified, measured, remeasured, and disclosed as facts.

regulatory oversight

Environmental obligations are enforced by the Environmental Protection Agency, delegated state and local authorities, and environmental agencies globally. Regulators oversee notification requirements, site investigation, remediation planning, groundwater protection, long-term monitoring, and compliance with permits, consent decrees, and closure requirements.

laws & regulations

U.S. securities laws require accurate, complete, and timely disclosure of environmental obligations and effective internal controls over financial reporting (IFCR). The Sarbanes-Oxley Act (SOX) establishes direct executive accountability for the design, operation, and certification of disclosure controls and internal controls related to environmental liabilities.

regulatory bodies

Enforced by the U.S. Securities and Exchange Commission, which oversees financial reporting, disclosure compliance, ICFR effectiveness, and executive certifications in Forms 10-K and 10-Q.

standards & codification

Environmental Obligations must be measured, recognized, and updated under U.S. GAAP, including ASC 410 governing environmental remediation and asset retirement obligations. Internationally, this is codified under IAS 37.

standard-setting body

The Financial Accounting Standards Board issues authoritative guidance translating regulatory exposure into financial statement impact in the U.S. Outside of the U.S., the standard-setting body is the International Accounting Standards Board (IASB).

governance & control requirements

Environmental Obligation governance must be supported by documented controls, consistent processes, and auditable evidence.

audit & oversight bodies

Internal and external audits are conducted under standards overseen by audit authorities, including the Public Company Accounting Oversight Board (PCAOB).

control framework

The COSO Framework (the de facto standard) defines how enterprises design, operate, and document the control environment and control activities governing Environmental Obligations across regulatory, accounting, and financial reporting requirements.

governance role

COSO underpins SOX compliance and ICFR by defining how controls are evaluated, tested, and sustained, enabling audit-ready governance through time, ownership change, and portfolio evolution.