Leveraging COSO principles for ESG reporting
The analysis highlights how companies can integrate sustainability information within their existing internal controls and governance frameworks.
COSO, a robust framework for ESG reporting
The universally adopted COSO Internal Control – Integrated Framework (ICIF) has long provided a good foundation for delivering confidence in corporate reporting. In an integrated internal-control environment, it can provide the foundation for enhancing the quality of sustainability data used for measuring progress on key sustainability objectives and deliver confidence to investors. In June 2023, the COSO further bolstered this foundation by releasing the Achieving Effective Internal Control Over Sustainability Reporting (ICSR) report, offering supplemental guidance to achieve robust internal control over sustainability reporting, leveraging the structure of the COSO Cube and its 17 Principles from the ICIF.
The benefits of an integrated internal control system
To bring about sustainability and climate transitions, companies and investors need to make economic decisions based on information they can trust – related to risks and opportunities, performance and resilience.
An integrated internal-control approach would lead to higher quality and more integrated reporting, IFAC believes, and help companies avoid perceptions of greenwashing and regulatory and legal action.
‘The professional accountant’s skillset is instrumental in bringing about a step change in the quality of sustainability reporting through applying new reporting standards and integrated internal controls’ said Kevin Dancey, IFAC CEO.
‘Integrated internal control can put sustainability information on par with financial information, enhance its assurance readiness, and set the foundation for transitioning to a more sustainable business model.’
How Mazars can help
Mazars can support your business in integrating sustainability matters into existing internal controls and governance structures. Our services extend to helping you identify, assess, and prioritise risks associated with your sustainability reporting objectives.
We also provide assistance for the implementation of control measures to manage these risks, thereby ensuring the successful achievement of your objectives. Additionally, we offer expertise in refining your internal audit approach to cover sustainability reporting challenges. If you require assistance, please contact one of our specialists via the form below or on:
| Brisbane – Matthew Beasley | Melbourne – Damien Lambert | Sydney – Jim Mascitelli |
| +61 7 3218 3900 | +61 3 9252 0800 | +61 2 9922 1166 |
Published: 02/04/2024
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