In a world of data, which information to trust and in what circumstances is a key business issue, especially when it comes to sustainability-related data. ACCA (the Association of Chartered Certified Accountants) and the Internal Audit Foundation have explored the issues and opportunities for businesses and other organisations and have prepared a practical report that offers recommendations and an action plan.

The new report Internal control over sustainability data reveals that there is a real opportunity for accountancy, finance and internal audit professionals to drive the sustainability agenda by applying the concepts of internal control to sustainability-related data. Together they can deliver strategically important and meaningful work and make a strong contribution to sustainable businesses which are essential for the future of the capital markets, the global economy and the planet.

Helen Brand OBE, chief executive of ACCA, said: “Trust in sustainability data is vital if we’re going to be successful in driving forward a more sustainable world, and a robust and effective approach to internal controls inside businesses is crucial to achieving this.

“Through this leading-edge research, we’re equipping accountancy, finance and internal audit professionals with the knowledge they need for the evolving sustainability landscape.”

Anne Kiem OBE, chief executive of the Chartered Institute of Internal Auditors, said: “Internal audit professionals have a critical role to play in providing assurance to business leaders that sustainability-related data is both robust and accurate.

“By maintaining a strong focus on internal controls related to sustainability data, businesses can help mitigate the risk of inaccurate reporting – or even the next greenwashing scandal. This is just one of the many ways internal auditors are contributing to a more sustainable economy and society.”

Using insights from over 50 accounting, finance and internal audit professionals and over 900 survey respondents, the report has three key messages:

• The nature of the process flows related to sustainability data require a reappraisal of the accepted internal control concepts to ensure that they can be applied appropriately.
• A successful implementation of internal control over sustainability data fundamentally relies upon the executive and management of the organisation establishing sustainability objectives as core strategic objectives monitored by robust key performance indicators (KPIs).
• Data ownership that embraces internal control must be established, especially in areas where control consciousness is not fundamental to personal conduct and all those involved in internal control need the appropriate skill sets.

The research was conducted as part of a long-standing memorandum of understanding between ACCA and The Institute of Internal Auditors (The IIA). Under the agreement, the two bodies are focused on advancing their members’ careers, enhancing governance practices, and serving the public interest.

Explore the full report here.