Why Global ESG Audits Will Be ‘Limited’ at First: Explained

Companies operating globally will soon face mandatory sustainability reporting requirements, which must be audited. Initially, the checks will be less strict than for financial reporting, but that is expected to change.

1. Will sustainability reporting be audited?

Most big companies operating internationally will face mandatory environmental, social and governance reporting requirements over the next few years. The earliest mandate is coming from the European Union, which will demand sustainabiity reports from all big companies, including foreign companies operating there, starting in fiscal 2024. At first the reports will have to undergo limited assurance—accuracy checks by an outside firm—but within a few years ...