Sustainabilty Reporting Assurance
1 like1,576 views
The document discusses sustainability reporting assurance in India, highlighting the positive trend in the number of reporters and the significance of external assurance for improving report credibility. It details the criteria, processes, and value derived from assurance, emphasizing the importance of stakeholder engagement and adherence to international standards like ISAE 3000 and GRI guidelines. Key challenges in sustainability reporting, such as report completeness, accuracy, and comparability, are also addressed, along with the critical role of third-party assurance in enhancing non-financial reporting credibility.
More Related Content
Similar to Sustainabilty Reporting Assurance (20)
More from Ekonnect Knowledge Foundation (20)
Sustainabilty Reporting Assurance
- 1. Sustainability Reporting Assurance Sharing of experience by Ernst & Young- Bombay Chamber Orientation Programme 9th May 2013
- 2. Contents ► Sustainability Reporting Landscape in India ► What does Sustainability Assurance Entail? ► Value Derived from External Assurance ► Key Issues in Sustainability Reporting ► EY Recommendations for Sustainability Assurance ► About Ernst & Young Sustainability Services
- 3. Sustainability AssurancePage 3 Sustainability Reporting Landscape in India • Positive trend in number of Indian reporters and those seeking external assurance • Global Reporting Initiative (GRI) is the most widely followed framework for sustainability reporting Sustainability Reports in India Reporters across diverse industrial sectors: • Energy • Construction • Technology • Telecom • FMCG • Automobiles • Services sector Current reporters are mostly large enterprises Forthcoming Developments: GRI G4 Guidelines, Integrated Reporting Source: Global Reporting Initiative (GRI) Reporting Database (http://database.globalreporting.org/)
- 4. Sustainability AssurancePage 4 What does Sustainability Assurance Entail? Typical assurance criteria: •Assurance Standard - ISAE 3000 (Limited Assurance), AA 1000 AS 2008 •Reporting Guidelines – GRI G3.1 Framework •Stakeholder Engagement Standard – AccountAbility AA1000 Assurance Criteria Typical Assurance Process Organizational Sustainability Review Stakeholder Dialogue Review Review of Data Processes Challenging the Report Assurance Statement and Management Report Site-wise Observations Assurance Outcomes Management Letter (to the Management) Assurance Statement (appears in Sustainability Report)
- 5. Sustainability AssurancePage 5 Appearing in the Company’s Sustainability Report An Assurance Statement Detailing findings, associated risks, recommendations, action points, management comments Management Letter Sufficient appropriate evidence to obtain enough comfort for our conclusions for the limited assurance engagement Appropriate evidence ISAE 3000, EN/HR/LA/PR/SO GRI G3.1 reporting guidelines, AA1000 Assurance Standard, Company’s own protocol Suitable Criteria Data & information; systems & processes relating to the public Sustainability Report Subject Matter Assurance provider (EY); the intended user (the readers of the Sustainability Report); separate party responsible for the information disclosure (the Company) A three-party relationship ExplanationComponents “Limited Assurance” based on the “International Standard on Assurance Engagements” (ISAE) 3000 – Assurance Standard Other than Audits or Reviews of Historical Financial Information. Limited Assurance - ISAE 3000
- 6. Sustainability AssurancePage 6 AA1000 Principles Key Criteria Foundation Principle of Inclusivity ► Commitment to be accountable to all stakeholders; ► Process in place for stakeholder participation; ►Necessary competencies and resources to operate stakeholder participation; ►Involvement of stakeholders in developing an accountable and strategic response to sustainability. Principles of Materiality ► Process in place for materiality determination; ►Necessary competencies and resources to apply the materiality determination process; ►Comprehensive and balanced understanding and prioritization of the organization’s material sustainability issues. Principle of Responsiveness ► Process in place for developing appropriate responses; ►Necessary competencies and resources to achieve the commitments; ► Comprehensive and balanced response to material issues; ►Timely response that addresses the needs, concerns and expectations of stakeholders. Types of AA1000 AS Engagement: • Type 1 – AccountAbility Principles •Type 2 – AccountAbility Principles and Performance Information AccountAbility AA1000 Assurance Standard Levels of AA1000 AS Assurance: • High Assurance • Moderate Assurance
- 7. Sustainability AssurancePage 7 Value Derived from External Assurance On the Reporting Process Reporting organizations are provided with: •Insight from leading clients with best practices •Independent view and recommendations on materiality processes used for selecting issues in the report •Observations on how report content can be expanded to meet wider stakeholder requirements •Guidance on achieving G3.1 A+ application level from GRI On Business Processes Observations will support: •Your approach to influencing contractors •Approach to communicating climate change commitments to forums such as CDP Credibility with Stakeholders Assurance process presents clear and transparent findings and conclusions: •Specific observations that provide depth to conclusions •Independent assessment of progress made against previous commitments On the Report •Provides confidence that public disclosures will stand up to external scrutiny •Provides conclusions on balance and materiality of the report, and its value to stakeholders On Sustainability Data Highlight areas for improvement in data processes. Examples: •Consistency in applying boundaries over safety/fatality reporting from contractors •Scrutiny over greenhouse gas data •Achievement of climate change reduction performance GRI Recognition •Externally assured report receives ‘+’ sign in the GRI Application Level
- 8. Sustainability AssurancePage 8 Key Issues in Sustainability Reporting Assurance Completeness of the Sustainability Report (Organizational boundary – JVs, subsidiaries, overseas ops) Accuracy of Non-Financial Information (Data systems and verification protocols are evolving) Comparability of Sustainability Performance (Comparison across companies and sectors still a challenge) ‘Balance’ of Sustainability Reports (May be perceived as PR exercise – need to strengthen integrity) Applicability and Usability of Reporting Guidance (Need to adapt reporting framework to India and SMEs) GRI Report Quality Principles: ► Balance ► Comparability ► Accuracy ► Timeliness ► Clarity ► Reliability GRI Report Content Principles: ► Materiality ► Inclusiveness ► Context ► Completeness GRI Report Quality Principles: ► Balance ► Comparability ► Accuracy ► Timeliness ► Clarity ► Reliability GRI Report Content Principles: ► Materiality ► Inclusiveness ► Context ► Completeness
- 9. Sustainability AssurancePage 9 “What kind of principles are used to assure non-numerical information, such as a Company’s stakeholder engagement, or community initiatives?” “What does the term Limited Assurance mean?” “What kind of variance in data is acceptable in an assurance?” “How is Assurance different from an Audit?” Commonly Asked Questions Any others??
- 10. Sustainability AssurancePage 10 GRI Guidance on seeking External Assurance Six Key Qualities for External Assurance of Sustainability Reports: ► should be conducted by external groups or individuals, who are demonstrably competent in the subject matter and assurance practices; ► assurance providers should publish an independent and impartial conclusion on the report; ► assurance should be systematic, documented, evidence-based, and characterized by defined procedures; ► assess whether the report provides a reasonable and balanced presentation of performance; consider the veracity of report data and overall selection of content; ► assess the extent to which the reporter has applied the GRI Reporting Framework and Principles; ► should result in an opinion or set of conclusions that is publicly available in written form, and a statement from the assurance provider on its relationship to the report preparer
- 11. Sustainability AssurancePage 11 EY pointers for Sustainability Reporters/Auditees Third-party assurance is critical for establishing credibility of non-financial reporting Use the assurance process as a process improvement tool, rather than just a data verification exercise Understand and correctly apply the Report Content and Quality Principles of GRI Internal and external stakeholder views are equally important in identifying issues most material to the organization’s sustainability
- 12. Sustainability AssurancePage 12 12 About Ernst & Young
- 13. Sustainability AssurancePage 13 Who we are and what we stand for 156,000 people | 750 offices | 140 countries | 1 unwavering commitment Who we are People who demonstrate integrity, respect and teaming. People with energy, enthusiasm, and the courage to lead. People who build relationships based on doing the right thing. Ernst & Young – A global leader Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 141,000 people are united by our shared values and an unwavering commitment to quality. In India* ► >6600 people ► 198 partners ► 10 locations ► Industry expertise – Focused industry What we stand for At Ernst & Young, we’re committed to helping our people, our clients and our wider communities achieve their potential. It’s how we make a difference.
- 14. Page 14 Sustainability Assurance EY Sustainability Advisory and Assurance Services Assuranc e Advisory Sustainability Strategy and Gap Analysis Sustainability Audit: Independent Review of effectiveness of Sustainability Internal Controls + remediation Sustainability Reporting Roadmap Answers questions: should we report? What is the Business Case for reporting in our case ? What are our peers doing ? Sustainability Reporting Assurance: External assurance on Sustainability Reports Sustainability Management Systems: Design and implementation of processes, Management Systems, Organizations, Sustainability Strategy: Diagnosis, benchmarking and roadmap for sustainability . It includes gap analysis vis a vis best in class companies in Sustainability Reporting Advisory Identification of sustainability performance indicators, Identify hurdles and opportunities in environmental and social performance Stakeholder value enhancement Brand value enhancement Sustainability Risks and Opportunity Assessment: Risk mapping, Risk prioritization, Identification of Opportunities arising from Sustainability considerations Social Responsibility – Program Management Independent Review of effectiveness of Sustainability Internal Controls + remediation Our approach to sustainability is not only reporting the data. We look at sustainability comprehensively and offer an array of services to clients through directed solutions which facilitate answer the questions of the companies and stakeholders.
- 15. Sumana Sarkar Manager Climate Change & Sustainability Services Ernst & Young Pvt. Ltd. Contact Mobile no : +91- 9833694364 [email protected] m
Editor's Notes
- #2: For information on applying this template onto existing presentations, refer to the notes on slide 2 of this presentation. The Input area of the Beam can be customized to reflect the content of the presentation. The Input area is an AutoShape with a picture fill. To change this, ensure you have the image you wish to use (ideally a .jpg or a .png file) in an accessible folder. The image should have a ratio of 1:1 to ensure it does not appear distorted. Acceptable images for importing into the Input area of the Beam are the three approved graphics (lines), and black and white photography or illustrations which follow the principles laid out on The Branding Zone. Color images should never be imported into this area. To create a thank you slide with a picture in the Input area of the Beam, duplicate this master slide and create a new master slide. If using the graphic on the title slide the same should be used on the thank you slide. If using a picture in the Input area of the Beam in the title slide, the same or different but related picture can be used on the thank you slide. Customize the Input area of the Beam as described below. Click on the View tab from the menu bar and select Master>Slide Master Right-click on the Input graphic and select Format AutoShape From the Fill menu, under the Color and Lines tab, click on the drop-down arrow next to Color and select the Fill Effects menu From the Picture tab, click on Select Picture . Navigate to the folder containing the image you wish to insert in the Input area. Highlight the image and tick the Lock picture aspect ratio box. Click on OK . You can now preview the image before continuing. If you are happy with how it looks, click Ok to continue. Otherwise, repeat the process until you are happy with your selected image To exit from Master View , click on View>Normal . The change you made to the Input graphic should now be visible on the title slide
- #3: It is possible to apply this template to exiting presentations. Have the latest presentation template open Click on the View tab and select Normal Delete all unwanted slides Click on the Insert tab from the menu bar and select Slides from Files Click on Browse . Navigate to the presentation you wish to update with the new template. Highlight the presentation and click Open Wait for the slides from the presentation to load and click on Insert All . Then click Close Check the inserted slides to ensure that the most appropriate master slide has been used on each slide To change the master applied to a slide select the slide you wish to apply a different master to then click on the Format tab from the menu bar and select Slide Design From the Used in This Presentation section choose the master you wish to apply to the slide and hover over it to reveal a drop-down arrow. Click on the arrow and select Apply to Selected Slides It is important to thoroughly check the presentation to ensure that no further formatting is needed.
- #10: Volvo Vision (2011): To become the world leader in sustainable transport solutions. Hyudai: Movement from Traditional E&C to total engineering solution covering design, engineering and operations. Sustainability is a cross business strategy
- #11: Volvo Vision (2011): To become the world leader in sustainable transport solutions. Hyudai: Movement from Traditional E&C to total engineering solution covering design, engineering and operations. Sustainability is a cross business strategy
- #12: Volvo Vision (2011): To become the world leader in sustainable transport solutions. Hyudai: Movement from Traditional E&C to total engineering solution covering design, engineering and operations. Sustainability is a cross business strategy