Corporate ESG Claims to Soon Face Audits Amid Greenwashing Fears

The disclosures that companies make about their green credentials will be evaluated by new global audit standards that are expected to be finalized by the end of next year.

The International Auditing and Assurance Standards Board (IAASB) set out its sustainability assurance proposals on Wednesday, with a consultation closing Dec. 1. The move reflects investor and stakeholder concern that corporate disclosures about sustainability aren’t always reliable.

“Corporate reporting, whether financial or sustainability focused, is more trusted when it receives external and independent assurance based upon globally accepted standards independently developed in the public interest,” IAASB Chair Tom Seidenstein said in ...