ESG auditfundamentals

Investor trust. Assurance signals that ESG claims stand up to scrutiny.

Regulatory compliance. Jurisdictions increasingly mandate assurance for key ESG metrics.

Operational discipline. Audit prep reveals process gaps, which improves future reporting.

Faster reporting cycles. When evidence lives in one place, future audits move faster.

1. Define scope early. Decide which metrics and disclosures auditors will test.
2. Organise evidence. Store calculations, raw data, and approvals in named folders or systems.
3. Document controls. Write down who prepares, reviews, and approves each metric.
4. Log findings and actions. Track every issue, owner, and due date so you can show continuous improvement.

1. Close-loop tracking. Ensure findings move from open to closed with sign-off.
2. Cycle time. Measure how long it takes to gather evidence and respond to requests.
3. Control effectiveness. Rate controls during walkthroughs and update documentation when processes change.
4. Readiness index. Create a simple score so leadership sees progress at a glance.

Limited assurance. A lower level of assurance focused on plausibility rather than absolute accuracy.

Reasonable assurance. Comparable to a financial audit—requires extensive testing and evidence.

Management assertion. The statement leadership signs that confirms responsibility for ESG data.