ESG Assurance

ESG Assurance

There is a growing demand for reliability and accuracy of published information on environmental, social and governance (ESG) factors. Reliable and consistent data should be a key pillar of any ESG programme. The ability to make informed decisions that support sustainability and responsible business depends on it.

As ESG reporting becomes standard practice, stakeholder interest in its content is growing. The market is increasingly aware that ESG factors affect financial metrics and ultimately company value. Investors, customers and regulators expect disclosures to be clear, accurate and reliable.

International sustainability reporting standards and regulators recommend and often require companies to seek independent verification of their ESG reports. BDO can provide this verification of your ESG report, its content and compliance with international reporting frameworks.

The European Corporate Sustainability Reporting Directive (CSRD) introduces an EU-wide requirement for limited assurance on sustainability information. Although the objective is to have a similar level of assurance for financial and sustainability reporting, a progressive approach is needed. The European Commission suggests starting with a ‘limited’ assurance requirement, aiming for ‘reasonable’ assurance at a later stage.

Our professional responsibility is to provide ESG data auditing in a way that serves the public interest - ensuring the credibility of ESG and sustainability disclosures and guaranteeing the quality of a company's ESG reporting. We combine in-depth knowledge of ESG issues and sustainability reporting standards with the expertise of experienced auditors. Together with you, we identify the optimal level of assurance that matches the current phase of your ESG strategy and the key priorities of your stakeholders.

Benefits of an ESG assurance

  • Strengthens internal awareness of significant sustainability risks and opportunities.
  • It positively impacts the company's brand and reputation and increases the confidence of customers, employees and other stakeholders.
  • Improves the company's ESG systems, processes and internal controls with each successive verification process.
  • Ensures the credibility, reliability and accuracy of non-financial data disclosed in annual and integrated reports.
  • Increases attractiveness to investors.
  • Promotes motivation, awareness and a sense of purpose among the organisation's employees.

  • Improves the company's position in credit, risk, regulatory and sustainability rankings.

ESG assurance services

  • Verification of non-financial/sustainability reports.
  • Verification of non-financial information intended for the public.
  • Verification of carbon footprint.
  • In-depth sustainability audit (ESG due diligence) to promote sustainable and responsible behaviour within global value chains.

Forms of ESG assurance

Our verification can take many forms, most commonly focusing on:

  • Sustainability reports, including performance data, targets and key performance indicators (KPIs) on environmental, social, economic and governance issues.
  • Integrated reports, including information on environmental, social, economic and governance topics.
  • Compliance with policies defined by external or internal standards or codes of conduct.
  • Specific communications to specific stakeholders or the Board of Directors on non-financial performance.
  • Statements regarding the social and environmental impacts of specific products or services.
  • Greenhouse gas emissions, including the organisation's emissions inventory or product life cycle.
  • Carbon credits and offsets issued in accordance with voluntary or regulatory standards.
  • Green, social or sustainability-related bonds in accordance with predefined criteria.
  • Due diligence measures for conflict minerals.

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