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Auditors get tougher guidelines on judging firms' environmental claims

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International auditors have been given new guidance on what to check when assessing firms' environmental, social and governance claims - and how - as part of efforts to increase rigour and consistency,
The article from Reuters discusses new guidelines issued by the International Auditing and Assurance Standards Board (IAASB) aimed at enhancing the scrutiny of companies' environmental claims. These guidelines, effective from January 27, 2025, are designed to help auditors better assess and verify the environmental, social, and governance (ESG) information that companies report. The move comes in response to increasing investor demand for reliable ESG data and amid concerns over greenwashing, where companies might exaggerate their environmental credentials. The IAASB's initiative includes providing auditors with more detailed procedures for evaluating the accuracy of sustainability-related disclosures, ensuring that these claims are not only consistent with the company's actual performance but also with international standards. This is part of a broader push towards greater transparency and accountability in corporate sustainability reporting.

Read the Full Reuters Article at:
[ https://www.reuters.com/sustainability/auditors-get-tougher-guidelines-judging-firms-environmental-claims-2025-01-27/ ]