ESG assurance

ESG assurance

Demand for reliability and accuracy in Environmental, Social and Governance (ESG) disclosures is growing. Our profession’s obligation is to deliver ESG assurance that serves the public interest by ensuring the credibility of the ESG and sustainability information disclosed, as well as the quality of the company’s ESG reporting. BDO brings insight to every critical opportunity and new ways of working that are shaping the future of audit and its relevance to sustainability.

International Sustainability Reporting Standards and regulators recommend, and often require, that companies should seek independent assurance on their ESG reports. BDO can provide this assurance on your ESG report including on certain ESG data, the content of the report, 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.

Benefits of sustainability assurance

  • Strengthens internal awareness of material sustainability risks and opportunities.
  • Positive influence on brand and reputation and greater trust among stakeholders.
  • Improves company ESG systems, processes and internal controls with each assurance engagement.
  • Ensures credibility, reliability and accuracy of non-financial company disclosures in annual and integrated reports.
  • Increases attractiveness to investors.
  • Increases enthusiasm, awareness and sense of purpose among people in the organisation.
  • Improves positioning with credit, risk, regulatory and sustainability rankings.

ESG assurance services

  • Assurance of non-financial / sustainability reports.
  • Attestations of non-financial information used for public disclosures.
  • Carbon disclosure verification.
  • Corporate sustainability due diligence (ESG DD) to foster sustainable and responsible corporate behaviour throughout global value chains.

Our non-financial sustainability assurance can take several forms, but frequently focuses on:

  • Sustainability reports, including performance disclosures, data, targets and KPIs relating to environmental, social, economic and governance topics.
  • Integrated reports, including environmental, social, economic and governance disclosures.
  • Adherence to principles as defined by external or internal standards or codes of conduct.
  • Specific communications made to particular stakeholders or the board related to non-financial performance.
  • Claims related to social and environmental outcomes of specific products or services.
  • Greenhouse gas emissions including organisational or life cycle product greenhouse gas emissions inventories.
  • Carbon credits or offsets issued under voluntary and/or regulatory standards.
  • Green, social or sustainability (linked) bonds against agreed criteria.
  • Conflict minerals due diligence measures.