Sustainability and ESG assurance services
Building trust and confidence with sustainability and ESG assurance
As stakeholder demand for sustainability and environmental, social and governance (ESG) information has intensified and become more sophisticated, businesses have shifted from thinking this is a peripheral concern to realizing it is essential. This transformation—driven by increasing rigor, scrutiny and regulation—underscores a significant change in expectations and accountability.
Whether your company is subject to mandatory ESG reporting requirements or is voluntarily addressing stakeholder demand, having your data verified by independent assurance specialists strengthens its credibility and supports strategic decision making. Companies that forgo this verification may risk fines, legal issues and damage to their reputation.
RSM understands the need for companies to align their operations with broader societal and regulatory shifts toward sustainability and accountability. Your business may benefit from sustainability and ESG assurance. The benefits include:
Your business may benefit from sustainability and ESG assurance by:
- Boosting credibility with stakeholders: Independent verification of your ESG data enhances trust and confidence among investors, suppliers, customers and other stakeholders. It demonstrates your commitment to transparency and accountability, which can lead to stronger business relationships and increased stakeholder loyalty.
- Supporting more confident business decisions: Accurate and reliable ESG data is crucial for making informed, confident decisions. ESG assurance provides insights needed to identify opportunities and manage risks. It also helps you align your business strategies with sustainability goals and regulatory requirements.
- Reducing the risk of reputational damage: Companies that fail to provide credible ESG information may face scrutiny, legal challenges and a loss of stakeholder trust. ESG assurance helps you avoid these pitfalls and maintain a positive reputation.
- Enhancing operational efficiency: ESG assurance can identify areas for improvement in your company’s performance. This can lead to more efficient operations, reduced costs, and better resource management. It also helps you stay ahead of regulatory changes and industry best practices.
- Attracting and retaining talent: Demonstrating a commitment to sustainability and responsible business practices can make your company more attractive to employees.
Sustainability and ESG assurance services
Driving transparency in your ESG reporting and compliance journey
Frequently asked questions about sustainability and ESG assurance services
Limited assurance: Provides moderate confidence that reported ESG information is free from material misstatement. Procedures are primarily analytical and inquiry-based.
Reasonable assurance: Offers a higher level of confidence through more extensive testing, evidence gathering and detailed evaluation of ESG data and processes.
Common frameworks include:
- Global Reporting Initiative (GRI)
- Sustainability Accounting Standards Board (SASB)
- Task Force on Climate-related Financial Disclosures (TCFD)
- IFRS Sustainability Standards
- Greenhouse Gas Protocol
RSM’s process: Overview
- Planning and scoping: Identify material ESG topics and applicable frameworks
- Data evaluation: Assess completeness, accuracy and consistency of ESG metrics
- Testing and validation: Perform procedures aligned with assurance level
- Reporting: Issue an assurance statement and recommendations for improvement
- Increasing regulatory requirements and global convergence of standards
- Rising stakeholder expectations for transparency and comparability
- Integrating ESG data into financial reporting
- Lacking internal resources and expertise for ESG data management
- Evolving demand for assurance over nonfinancial metrics
- Expanding use of technology and AI for ESG data collection and analysis
RSM’s ESG and sustainability assurance services include:
- Framework development: We provide guidance on selecting and implementing ESG reporting standards.
- Gap analysis: We identify areas for improvement in current sustainability practices.
- Data readiness support: We help you establish robust processes for collecting and managing ESG data.
- Independent assurance: We deliver limited or reasonable assurance engagements to enhance credibility.
- Strategic insights: We offer recommendations to align ESG initiatives with business objectives and stakeholder expectations.
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