Key Insights From ESG And Sustainability Assurance Services Customers
Key Insights From ESG And Sustainability Assurance Services Customers
The majority of firms across all sectors are preparing for ESG assurance, according to the 2024 Verdantix ESG global corporate survey: 57% of organizations have conducted or are conducting pre-assurance with an auditor. As part of the 2024 Green Quadrant on ESG and sustainability assurance services, Verdantix conducted 14 customer interviews to gain insights into their experiences, selection criteria and best practices for assurance services, and to better understand the value these services bring to buyers. We interviewed senior leaders overseeing ESG reporting and sustainability across diverse industries, from construction to finance, and across firm sizes, from SMEs to global corporations.
Our interviews revealed the following key takeaways:
- Pre-assurance engagements and long-term partnerships breed confidence.
Regulatory adherence remains a major driver for ESG assurance, with many organizations relying on pre-assurance, particularly for the CSRD. These early assessments help businesses anticipate compliance challenges and refine reporting before formal assurance begins. However, tight deadlines pose a challenge, with many firms struggling to allocate time for pre-assurance assessments. As a result, organizations often move directly into assurance, underscoring the need for providers that can work within strict financial reporting cycles. Fostering long-term partnerships with assurance providers can enhance efficiency and build confidence in ESG disclosures. Hence, firms should treat assurance feedback as a roadmap for continuous improvement.
- Data management and accuracy are critical pain points.
Handling large volumes of ESG data remains a complex issue for many businesses. Decentralized organizations often struggle with inconsistent reporting, leading to data gaps and inaccuracies. A common challenge cited by customers is managing Scope 3 emissions, which rely on fragmented supplier data. Assurance providers that offer structured methodologies – such as scorecards and standardized frameworks – help improve data governance and audit readiness. As one ESG reporting manager noted, “Our team was new to ESG assurance, and data collection took significant effort. The provider’s guidance was invaluable in refining our approach.”
- Firms seek assurance to enhance credibility and investor confidence.
Beyond compliance, ESG assurance builds trust. Investors, customers and regulators demand greater transparency, and third-party verification helps businesses provide credible disclosures. Organizations that voluntarily pursue ESG assurance – even when not legally required – stand out as sustainability leaders. As an ESG director at a financial services firm succinctly put it: “Investors and customers expect transparency; thus, assurance is a key part of credibility and trust”.
- ESG assurance providers must offer industry-specific sustainability expertise.
Selecting an assurance provider is not just about technical capabilities – it’s also about understanding industry-specific challenges. Decision-makers emphasize the importance of providers that apply sustainability standards to sector-specific contexts, particularly in industries like manufacturing, mining and real estate. For instance, a mining organization cited difficulties in finding assurance providers fluent in process-specific emissions factors, while a real estate investment firm valued expertise in energy efficiency regulations. Businesses also favour providers with a strong local presence to ensure audits align with regional regulations.
By selecting the right assurance partner and taking a proactive approach to data governance, organizations can turn ESG assurance into a powerful tool for long-term sustainability success. Read the full reports to learn more:
Verdantix Green Quadrant: ESG & Sustainability Assurance Services 2024
Jessie Wilson
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LinkedIn
