ESG Data Assurance

ESG data assurance is the independent assessment of whether an organisation's publicly disclosed sustainability indicators are accurate, complete and calculated according to a defined methodology. The focus is not whether the performance is good, but whether the REPORTED FIGURE IS CORRECT.

The aim is for sustainability data presented to investors and regulators to be as reliable as financial data. Unverified ESG data is increasingly less accepted in investor assessments.

• Companies publishing a sustainability report
• Businesses subject to investors' and lenders' ESG requirements
• Groups within scope of corporate sustainability reporting
• Listed companies
• Suppliers whose supply chain requires ESG data

• Selecting the indicators to be brought within scope of assurance
• Determining the reporting framework applied: GRI, ESRS, IFRS S1/S2, SASB
• Examining the organisation's calculation methodology
• Assessing the data-collection process and internal controls
• Testing traceability of the data back to its source
• Environmental indicators: energy, water, waste, emissions
• Social indicators: employment, diversity, occupational safety, training hours
• Governance indicators: board structure, ethics-violation reports
• Clarifying disclosures excluded from scope

• ISAE 3000
• ISO 14064-3
• GRI Standards
• ESRS
• IFRS S1 / S2

• ISAE 3000
• ISO 14064-3
• GRI Standards
• ESRS
• IFRS S1 / S2

1. 1Engagement Acceptance and ScopeIt is agreed in writing which data will be assessed, against which reporting framework and at what level of assurance.
2. 2Establishing the CriteriaThe reporting framework applied (GRI, ESRS, IFRS S1/S2) and the organisation's own calculation methodology are established as the criteria.
3. 3Risk Assessment and MaterialityIndicators carrying a risk of misstatement are identified; the materiality threshold and the extent of sampling are set accordingly.
4. 4Examination of Internal ControlsThe data collection process, calculation controls and approval mechanisms are examined; traceability of the data back to source is tested.
5. 5Indicator-level TestingFor the selected indicators, recalculation, checking of source documents and analytical procedures are applied.
6. 6Handling of FindingsErrors identified and unsupported disclosures are communicated to the organisation; the report is corrected.
7. 7Assurance StatementAn assurance statement worded in line with the chosen level of assurance is issued and published in the report.

Assurance engagements are carried out at either limited or reasonable assurance level. In practice most sustainability reports are published with limited assurance, while regulation foresees a gradual move to reasonable assurance. The level is stated explicitly in the wording of the statement, and the two levels are not interchangeable.

• Details of the assurance provider and the team
• Indicators covered by the assurance and the period
• Reporting framework applied and the criteria
• Assurance standard applied and the level of assurance
• Summary of the procedures performed
• The division of responsibilities between the organisation and the assurance provider
• The assurance conclusion (statement)
• Disclosures excluded from the scope

An assurance engagement is neither a certification nor a financial audit; its output is an assurance statement. Limited assurance covers a markedly narrower examination than reasonable assurance, and the two are not interchangeable. The assurance applies only to the indicators and period within scope; it says nothing about the parts of the report left outside it.

Greenhouse gas verification and validation activities are accredited under ISO 14065; the verification itself is performed to ISO 14064-3 and the competence of verification personnel is defined by ISO 14066. Assurance engagements, by contrast, are governed by assurance standards such as ISAE 3000 and do not fall within accredited certification. In both frameworks the impartiality rule is decisive: the party that performs the calculation cannot verify that same calculation. EUROLAB holds internationally recognised accreditation from accreditation bodies that are signatories to the ILAC and IAF mutual recognition arrangements; which verifications can be offered within accredited scope is confirmed in writing at the quotation stage.

• Sustainability Report Assurance
• CBAM/SKDM
• Renewable Energy
• Green Bond Verification