As the demand for organisations to prepare information in relation to environmental, social, and governance (ESG) and sustainability continues to increase through changes in regulatory requirements or stakeholder expectations, there is a growing need for assurance over the information prepared.

Changes in regulations in Australia will require companies reporting under Chapter 2M of the Corporations Act 2001, that exceed certain thresholds at certain times, to prepare a sustainability report and to have it audited or reviewed by their financial statement auditor. The sustainability report will be included as part of their annual report and include climate-related financial disclosures. Refer to our insights around mandatory climate reporting.

You may also want to report non climate related ESG or other sustainability-related information and have that information   assured, or your suppliers may request you have GHG emissions assured. 

For many companies, their first year of mandatory sustainability reporting will also be their first year of assurance. It is important that systems, processes, and controls are in place from day one of the reporting period. Changes to systems or processes may be required to allow you to gather the data to report.

How we can help

As part of getting ready for assurance we can provide education, conduct gap analysis and perform ‘assurance readiness’ procedures or early assurance ahead of mandatory reporting and assurance – whether mandatory, voluntary, reasonable or limited assurance.

Our process will assist in identifying any gaps in your systems, processes, controls and documentation that may impact the ability for limited or reasonable assurance to be provided. Undertaking an assurance readiness engagement or early assurance may allow sufficient time to implement any required changes and minimise any risks associated with transitioning to assurance.

The mandatory assurance requirements start with limited assurance and increase to reasonable assurance over time. When the legislation and assurance framework are finalised, our experts will be ready to provide assurance over your mandatory reporting and assurance requirements.

If you are not captured by mandatory assurance requirements, your suppliers, financiers, or stakeholders may request assurance over climate (GHG emissions), ESG or other sustainability metrics. We can provide limited or reasonable assurance using existing assurance standards.