ESG assurance in audit involves independent verification and validation of a company's ESG performance, policies, and procedures. This is done to ensure that the ESG information reported by the company is accurate, reliable, and consistent with applicable regulations and industry standards.
As per the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, listed companies in India are required to report on their ESG performance. However, companies across all sectors are increasingly recognizing the importance of ESG reporting as a means of demonstrating their commitment to sustainable and responsible business practices.
ESG reporting involves the disclosure of a company's ESG performance, policies, and procedures to stakeholders. ESG assurance in audit involves independent verification and validation of the ESG information reported by the company to ensure accuracy, reliability, and consistency with applicable regulations and industry standards.
As per the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, companies are required to report on their ESG performance on an annual basis.
Some common ESG KPIs that companies report on in India include carbon emissions, energy consumption, water usage, waste generation, employee diversity and inclusion, employee turnover, health and safety incidents, community engagement, and philanthropic contributions.
ESG performance can be benchmarked against industry peers using various tools and methods, such as ESG ratings, rankings, and indices. These tools provide a standardized way to assess ESG performance and compare it with peers in the same industry. Companies can use these benchmarks to identify areas for improvement and set sustainability goals that are in line with industry best practices.
ESG assurance in audit can help companies attract socially responsible investors by providing transparent and reliable ESG information that demonstrates the company's commitment to sustainability and responsible business practices. This information can help investors assess the company's long-term sustainability and risk profile, which can be important factors in investment decision-making.
ESG assurance in audit can help companies improve their sustainability practices by providing a comprehensive and objective assessment of their ESG performance, identifying areas for improvement, and setting sustainability goals that are in line with industry best practices. By improving their sustainability practices, companies can enhance their reputation, attract socially responsible investors, and reduce ESG risks that could impact their business.
Enterslice can help companies with ESG assurance in an audit by providing customized solutions that fit their unique needs and goals. Our team of experts can help companies identify relevant ESG risks and opportunities, select appropriate ESG KPIs, establish robust data collection and reporting processes, and conduct regular internal and external audits to ensure the accuracy and reliability of ESG information. We can also help companies align their ESG reporting with Indian regulatory requirements and international best practices, and communicate their sustainability efforts to stakeholders.