Our industry is engaged in an important dialogue to improve the efficiency and resilience of real assets through transparency and industry collaboration. This article is a contribution to this larger conversation and does not necessarily reflect GRESB’s position.
Businesses are under increasing pressure to generate and build confidence in their ESG data. As sustainability reporting becomes more regulated, stakeholder expectations are rising in response. Trusted, reliable, and verified data is now in higher demand than ever. Done well, assurance can provide insights that drive continual business improvement and inform strategic decisions. With such high value, it’s no surprise that stakeholders and regulators are beginning to expect ESG data to be assured.
The sustainability landscape is changing—make sure your reporting changes too
In order to bring reporting processes into the future with confidence, businesses must start treating non-financial data with the same level of rigor and governance as financial data. Assurance assessments are a part of this, so it’s best to make sure you’re ready in advance.
Verco’s Head of Assurance, Jing Wang, explains, “One of the biggest changes I see coming is a move from voluntary to mandatory assurance of sustainability information—especially in regions affected by CSRD and other regulatory frameworks. This will raise the bar for how data is collected, verified, and governed. I believe there will also be greater emphasis on the assurance of forward-looking and scenario-based disclosures, not just historical data. This will challenge companies to strengthen their methodologies, especially in areas like climate risk, transition plans, and science-based targets.”
Now is the time to find out more about the assurance process
Third-party assurance assessments involve expert analysis of your processes against a recognized and accepted standard. Of course, there are numerous things to consider first.
Should you seek out pre-assurance services to prepare for what an assurance assessment might highlight?
Pre-assurance is a worthwhile test of how close you are to being ready for assurance. It is a broad assessment that mirrors certain aspects of the assurance process, evaluating whether the expectations of assurance providers will be met.
In terms of benefits, you receive a detailed review of your reporting practices, governance structures, and supporting documentation, as well as advice on how to improve the quality, coverage, or robustness of data. This allows you to prepare for the formal assurance process, but it also develops your understanding of specific standards and teaches your team how to identify gaps in data and generate decision-informing outputs.
Pre-assurance is also a cost-effective option, as it allows clients to prepare in advance for a smoother and more effective assurance outcome.
Which standard(s) should you assure against, and who should you enlist to carry out the assessment?
It’s important to develop a well-rounded view of the available standards to assure against. Remember, there might be more than one applicable to your business needs. For example, AA1000 and ISAE3000/ISSA5000 are two complementary, not competing, standards. An organization might use AA1000 to assure the quality of stakeholder engagement, materiality assessment, and ESG governance, and use ISAE 3000 or ISSA 5000 for data assurance. This dual approach provides a holistic view, ensuring both accurate data and a credible ESG strategy.
Some companies may choose specific GHG verification standards, such as ISO 14064-3. In practice, the engagement process of verification is similar to assurance engagement. The latter also considers governance and internal controls, in addition to testing emissions data.
As for what kind of assessor to enlist, the wisest choice is a certified assurance provider. A qualified specialist of this kind can offer deep expertise in ESG strategy and stakeholder engagement, ensure alignment with global frameworks and regulatory expectations, and help you develop trust, transparency, and long-term value.
Here we’ve briefly covered only two of the frequently asked questions about assurance. There are many others, and they each have in-depth, case-by-case answers. As we enter this period of rapid evolution in sustainability assurance, now is a great time to get those questions answered.
Upcoming webinar on ESG assurance
Verco’s assurance experts, Jing Wang and Mark Challis, are running a webinar on this evolving topic. Taking place on Tuesday October 14, ESG Assurance – what you need to know will cover a variety of frequently asked questions. Join the webinar to understand how to choose between different assurance standards, how qualitative and quantitative data is assured, the difference between limited and reasonable assurance, and the value of pre-assurance. Register to get a recording or tune in on the day for the opportunity to ask questions. You can find out more about the webinar and register here.
This article was written by Mark Challis, Director, Operations at Verco. Learn more about Verco here.