A critical lack of trust in the accuracy of corporate sustainability data is undermining the environmental strategies of organisations worldwide, according to a groundbreaking new report.
Association of Chartered Certified Accountants informed today that the research warns that without robust internal controls, businesses are building their green initiatives on a foundation of potentially unreliable information, posing a significant risk to their strategic goals and the global economy.
The new publication, titled “Internal control over sustainability data,” was issued jointly by ACCA (the Association of Chartered Certified Accountants) and The Institute of Internal Auditors’ (IIA) Internal Audit Foundation. It examines the opportunities and challenges corporations face in a data-driven world and provides a practical action plan for ensuring the integrity of sustainability-related information.
The findings highlight a pivotal opportunity for professionals in accounting, finance, and internal audit to spearhead the sustainability agenda. The report asserts that by applying established internal control principles to environmental and social data, these experts can drive meaningful progress and contribute significantly to building sustainable enterprises essential for the future of capital markets and the planet.
“Trust in sustainability data is vital if we’re going to be successful in driving forward a more sustainable world,” said Helen Brand OBE, chief executive of ACCA. She emphasized that an effective approach to internal controls is crucial for achieving this trust and that the research equips professionals with the necessary knowledge for the evolving landscape.
Echoing this sentiment, Anthony J. Pugliese, President and CEO of The IIA, stated, “By focusing on how we apply internal controls to sustainability data, our professions can collectively strengthen trust, support better decisions, and help build truly sustainable businesses.” He described the report as a “compelling call to action” for professionals to lead the way.
Drawing from interviews with over 50 industry professionals and a survey of more than 900 respondents, the study presents three essential messages for success.
First, it calls for a reappraisal of accepted internal control concepts to ensure they are appropriately applied to the unique process flows of sustainability information.
Second, the report underscores that successful implementation depends on an organisation”s executive leadership embedding sustainability objectives as core strategic priorities, which are then monitored by robust key performance indicators (KPIs).
Finally, the research insists on establishing clear data ownership, particularly in areas where a control-conscious mindset is not yet ingrained. It also stresses the need for all personnel involved in the process to possess the appropriate skill sets to fulfill their responsibilities effectively.
This collaborative research was conducted under a long-standing memorandum of understanding between ACCA and The IIA, which aims to advance their members” careers, enhance governance practices, and serve the public interest.