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Deloitte hosted an informative and engaging briefing session to analyse the role of standards and assurance in Environmental, Social, and Governance (ESG) reporting. The session provided an opportunity to explore the critical role standards and assurance play in enhancing trust and credibility in ESG reporting. The event emphasized the significance of using globally accepted standards, frameworks, and independent verification to enhance transparency, uniformity, and dependability in ESG reporting.
Deloitte East Africa Financial Institutions Services Team Leader Charles Luo observed, “Major shifts across economic, social political, legal and environment landscapes are demanding reconsideration of how organisations design their business model and deliver value to their stakeholders. In doing so, businesses should adopt an Understand, Develop and Activate (UDA) strategy in planning for their End-to-End ESG journey.”
The ESG landscape is changing at an accelerated pace and firms are under increased pressure to assess, manage, and disclose their ESG positions and commitments. It is time for organizations to demonstrate their principles in action by unlocking sustainable means of doing business by encouraging sustainable behaviour. ESG is quickly shifting from being a moral responsibility to being a regulatory requirement as various regulators across the region are currently designing various ways to integrate ESG into their supervisory processes. For instance, more than 50 insurance entities across the continent have signed the Nairobi Declaration on Sustainable Insurance, as a commitment to considering ESG across their businesses.
Deloitte East Africa Assurance Partner Akinyemi Awodumila noted, “Recently, the International Sustainability Standards Board (ISSB) issued its inaugural sustainability disclosure standards IFRS S1 and IFRS S2 that will accelerate efforts towards a cohesive approach to sustainability reporting globally, provide a common framework, and improve the utility and transparency of sustainability disclosures. This will enable organisations demonstrate accountability and build trust.”
The concept of ESG reporting has gained immense traction in recent years as businesses have come to recognize the importance of sustainable growth and corporate responsibility. ESG reporting is now considered a critical component of corporate reporting, as it provides stakeholders with essential information to make informed decisions about investing, lending, and partnering with businesses. Investors and other stakeholders increasingly demand more transparency and accountability from companies regarding their ESG performance, as they recognize the potential risks and opportunities associated with ESG issues. However, ESG reporting practices can vary widely across companies and sectors, leading to inconsistencies, data quality issues, and a lack of meaningful information for stakeholders. Therefore, there is a growing need for companies to adopt transparent and accountable ESG reporting practices that provide accurate and reliable information to stakeholders.
At Deloitte, our purpose is to make an impact that matters for our clients, our people and society. We have developed an end-to-end solution set of market offerings to help clients to develop their ESG strategies and achieve their net-zero emissions targets. This covers every step of the journey as organisations redefine their strategies, embed sustainability into their operations, meet tax, disclosure reporting and regulatory requirements and engage stakeholders.
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