Sustainability in the focus of internal audit

How audit systems can effectively assess ESG requirements

Sustainability has long been more than just a strategic goal – it is a legal requirement. With the introduction of the Corporate Sustainability Reporting Directive (CSRD) and ESG (environmental, social and governance) requirements, organisations are under increasing pressure to fulfil their responsibilities in a transparent and verifiable manner. This is precisely where internal auditing comes into play: as an independent function for reviewing, evaluating and strengthening sustainable corporate processes.

‘Anyone who takes sustainability seriously must also make the relevant corporate processes verifiable.’ – Florian Habel

What can the revision achieve at ESG?

Auditing can play a decisive role in ensuring that sustainability goals do not just exist on paper. Its task is to check the effectiveness, reliability and regulatory compliance of ESG-related processes.

Possible areas of review would include:

• Completeness and plausibility of the sustainability report

• Process monitoring of the preparation of carbon footprints and energy consumption data

• Implementation of supply chain obligations under the LkSG

• Social criteria: equality, diversity, working conditions

• Governance mechanisms for ESG monitoring

‘Auditing is not the moral authority – but it checks whether values are being lived and demonstrated.’

ESG audits often require an interdisciplinary approach. In addition to traditional audit methods such as process analyses, interviews and document reviews, digital tools and indicators are increasingly being used, e.g. in the analysis of climate data or supplier networks.

A practical example: In an ESG assessment, it can be shown that although a company had communicated a comprehensive sustainability strategy, there were no operational key figures or control mechanisms in place to demonstrate progress. Targeted recommendations can be used to set up an internal reporting system that now makes ESG developments measurable.

Challenges and typical stumbling blocks

Despite its relevance, ESG remains structurally underdeveloped in many organisations or spread across several areas of responsibility (e.g. communications, CSR, compliance).

Typical obstacles include, for example:

• Unclear responsibilities Missing data or insufficient evidence

• Lack of ESG expertise within the organisation

• Uncertainty about applicable auditing standards

‘Like any other process, sustainability must be embedded in governance structures – only then can it be controlled and audited.’

My approach: realistic, systematic, independent

As an expert in governance and auditing, I support organisations in making their ESG activities verifiable and effective. The focus is not on ‘greenwashing’, but on genuinely strengthening transparency, controllability and credibility.

Whether as part of an existing audit plan or as part of a special audit, I provide organisations with sound, discreet and practical support.

Contact us now for advice on assessing sustainability requirements and ESG risks.

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