The Role of Internal Auditors in ESG Implementation and Reporting

Environmental, Social, and Governance (ESG) is rapidly gaining prominence as a critical area shaping the future of businesses.

To remain competitive and credible, organisations must thoroughly understand, operationalize, and transparently communicate their sustainability commitments and strategies. This is essential to meeting the growing expectations of customers, investors, regulators, employees, and other key stakeholders.

In response, boards and executive management are increasingly relying on assurance providers to deliver valuable insights and support. This leverages the value of the internal auditor in an organisation’s ESG journey. ESG encapsulates the corporate governance, environmental impact and social interaction an organization has with the community they inhabit, now and in the future. The internal auditor can be relied on in strategic planning, risk management, and all related assurance to mitigate identified ESG risks.

Internal auditors play a pivotal role in Environmental, Social, and Governance (ESG) initiatives, working to uphold transparency, accountability, and compliance with evolving standards. As key stakeholders in the governance pillar of ESG, they focus on the organizational structure of a company, which includes management, the board, audits, internal controls, and business ethics. By evaluating the effectiveness of ESG controls and identifying potential risks, internal auditors provide critical assurance to the organization.