Because more people are scrutinising unverified sustainability stories, independent assurance for ESG disclosures is becoming increasingly important. Sustrack can help companies achieve credible, clear and confident sustainability performance through its ESG Assurance Service.
What Is ESG Assurance — And Why It Matters?
The fundamental definition of ESG assurance is the verification of a company’s ESG disclosures, data and reporting processes by an independent party. Providing assurance allows all shareholders and investors to feel confident that a business’ sustainability statements are accurate, validated, and consistent with proven standards. Without independent assurance, a business’ ESG reporting could be thought of as basic marketing materials (and worse, as 'greenwashing'), which means that the bank will create an untruthful impression of sustainable investments.
As ESG becomes increasingly critical for companies to acquire investment dollars; comply with regulatory bodies; and to establish a brand, assurance has become an absolutely essential part of a corporation's efforts to be perceived as credible and forward-thinking. In India, for instance, many companies are now required to provide a formal Third-Party Auditor’s report documenting some degree of assurance concerning their ESG disclosures under SEBI’s BRSR framework (Business Responsibility and Sustainability Reporting). Thus, assurance is becoming a critical part of business strategy for companies operating in India.
Company Description: Sustrack provides an independent, third-party ESG evaluation service.
The company's ESG Assurance service uses three elements to build credibility, improve ESG performance and communicate ESG performance transparently.
The Three Elements of Sustrack's ESG Assurance:
- Verified ESG Assurance to Build Trust
The primary focus of Sustrack's ESG Assurance service is the provision of third-party verification, which is an independent examination of the validity and accuracy of a company's ESG information. This verification provides an objective assurance to all stakeholders that the reported information is valid and meets local and global standards for reliability and integrity.
- Optimised ESG Practices for Successful Growth
Sustrack further enhances the value of ESG data by helping organisations improve their overall ESG processes. During the process of verifying a company's ESG data, Sustrack identifies opportunities for improvement, such as the data collection system and control mechanisms used by a company, as well as the alignment of methodologies with the company's overall ESG goals. The result is improved internal controls, internally defined metrics, and the ability to report ESG performance accurately and consistently.
3. Environmental, Social, and Governance (ESG) Data to Compare Company Performance and Inform Stakeholders
In addition to providing verification, Sustrack also provides ESG rating services that allow an organisation to benchmark its ESG performance against similar companies and to compare its ESG performance against global standards. ESG rating services are a key communication tool for businesses to understand their place within the leadership continuum for sustainability.
Through this benchmarking practice, organisations can highlight excellence in ESG performance as well as identify their key strengths and weaknesses compared to their peers and the broader industry benchmarks.
ESG Assurance Service from Sustrack is adaptable for both limited and reasonable assurance levels based on the organisation's maturity and goals.
Limited Assurance
- Provides moderate assurance through analytical review and inquiry.
- Limited assurance conclusion statement might look like "Nothing has come to our attention to suggest that the data is materially misstatements".
- Limited Assurance is a quick and cost-effective route for organisations that are considering their first step into formal assurance.
Reasonable Assurance
- Provides a high level of confidence through detailed tests, sampling, and verifications.
- The Evidence of Reasonable Assurance statement is stronger, e.g. "In our opinion, the data is fairly stated in all material respects".
- Reasonable Assurance is best suited for organisations with established ESG Reporting or those operating within a regulated environment and where the highest level of validation is required by the stakeholders.
The Assurance Process and its Key Stages
While you will have a unique workflow depending on your own organisation and the assurance level you have selected for your ESG Assurance Engagement (through an ESG assurance engagement), your ESG assurance engagement will generally consist of the following phases:
- Developing the Scope and Plan: To establish the metrics, timeframes, business units and other relevant criteria for the engagement.
- Assessing Risks and Issues for Materiality: To identify the relative importance of each issue for stakeholders and as a result which issues may have risks for misreporting.
- Mapping Data and Validating Data: To collect all quantitative and qualitative evidence and ensure that all evidence gathered can be traced back to an established framework or frameworks.
- Testing and Verifying Data: To use analytical techniques or substantive techniques to test and confirm that the collected data is complete and accurate.
- Drafting a Draft Assurance Statement and Facilitating Client Feedback: To prepare the draft assurance statement for the Client to review before finalisation.
- Publishing and Disclosing an Assured ESG Report and the Corresponding Assurance Statement: To publish the assured ESG report together with the draft assurance statement.
This structured process not only verifies current performance, but also strengthens internal systems and builds resilience for future reporting cycles.
Why Should You Choose Sustrack for ESG Assurance?
Sustrack's ESG assurance service is distinctively different from competitors due to our comprehensive approach, extensive support technology, and flexibility. Here are a few reasons to consider partnering with us:
Integrated Sustainability Solutions: With Sustrack, clients also receive consulting and reporting technologies, carbon accounting services, and Sustrack provides training and support as an integrated part of each client’s overall sustainability partnership, not simply as a "stand-alone" service.
Technology-Driven Insights: Sustrack's proprietary ESG WebApp simplifies the process of capturing, preparing and disseminating ESG data from various systems to streamline internal and external reporting processes to prepare you for the ESG assurance process.
Flexible Assurance Services: Whether your organisation is beginning its ESG assurance journey and would benefit from foundational assurance, or your organisation has an established ESG programme and requires an audit-grade review of your programme, Sustrack will align its offering to meet your goals and anticipated maturity level.
Final Thoughts: Using Assurance to Create Competitive Advantage:
With growing scrutiny of sustainability performance, ESG assurance is no longer an option, but a strategic differentiator for organisations. By partnering with a reputable provider like Sustrack, organisations can turn ESG reporting from a compliance obligation into a trust-building opportunity, grow stakeholder confidence and better suit themselves to be competitive long-term participants in a sustainability-driven market.
Visit us for more info:-https://www.sustrack.com/
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