A recent analysis from the International Federation of Accountants (IFAC) plus AICPA and CIMA reveals that approximately three in four of the largest international firms sought verification of their sustainability disclosures in 2023.
In 2023, 73% of large firms from G20 countries secured assurance on their sustainability disclosures, a growth from 69% recorded in the prior year.
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The research, now in its fifth iteration, features updated figures for 2023 and underscores a growing trend in sustainability verification.
Five years prior, merely 51% of major companies sought such verification, indicating a significant evolution in corporate behaviour.
Audit firms continue to dominate the sustainability assurance sector, holding a 55% market share among large global enterprises.
However, this figure has declined from 58% in 2022, a change attributed to the consolidation of reports and shifts in reporting methodologies.
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By GlobalDataIn the EU, audit firms have transitioned to issuing single assurance reports rather than multiple individual ones.
This adjustment has led to a decrease in the total number of reports issued, despite an increase in the number of clients seeking assurance.
Consultants and non-audit service providers are increasingly responsible for issuing multiple assurance reports concerning greenhouse gas emissions.
Companies in general initiate their assurance processes by concentrating on greenhouse gas-related data and engaging specialists in that domain.
The report further highlights a rise in the utilisation of audit firms across key markets, including Singapore, South Africa, the UK, and the US.
In the US, the proportion of sustainability assurance provided by audit firms increased from 23% to 28%.
More than three-quarters of firms are now incorporating sustainability information alongside their financial disclosures in annual or integrated reports.
These organisations generally depend on their statutory auditors to provide verification for these disclosures.
Moreover, the study indicates that nearly all firms (98%) disclose some form of sustainability information.
The incorporation of sustainability data in annual reports continues to grow, with five jurisdictions witnessing double-digit increases in sustainability assurance in 2023.
