Lecture 12, 13
Current and ongoing regulations and trends in ESG assurance
1. Limmited vs reasonable assurance
2. Double materiality assessment
3. Assurance realted injuries and value chain emissions
4. New role and profile of ESG auditors
Limited vs reasonable assurance
1. Limited assurance involves fewer procedures and less detailed analysis compared to reasonable assurance
2. Limited assurance relies primarily on analytical procedures
3. Reasonable assurance includes additional procedures like inspection, recalculation, reperformance, and sampling.
Double Materiality Assessment (DMA)
It involves evaluating both the financial materiality (impact on the company's financial value) and impact materiality (impact on the environment and society)
Assurance of value chain emissions
For value chain emissions, the process involves verifying the methodologies used to quantify energy consumption and mix, including fossil and renewable sources.
Assurance of work related injuries
The assurance process for work-related injuries involves ensuring the accuracy of disclosed metrics such as the number and rate of incidents.