Today’s businesses face increased pressure from various stakeholders - such as regulators, customers, future employees and society - to become more sustainable. Companies who actively integrate sustainability and ESG in their strategy and daily way of working have a strong competitive advantage. When embarking on their sustainability journey, however, companies will need to reconsider the role of their risk management and internal audit function to effectively address the opportunities and challenges that come with it.
Organizations’ risk management, internal control and internal audit functions can add value by taking a deeper dive in identifying and mapping emerging risks specific to the organization’s context (e.g. risks related to climate, ethical supply chain, toxic chemicals, employee wellbeing, community impact) and the effectiveness of the existing internal controls. More holistically, these 2nd and 3rd line functions are also well positioned to assess and define an appropriate governance model enabling organizations to streamline their sustainability initiatives and increase their maturity to the desired state.
KPMG’s enterprise risk & assurance professionals have the right experience, proven tools and methodologies as well as an independent perspective to understand strategy, assess risks, analyze processes and controls to improve a company’s ability to achieve their sustainability goals.
How we can help
Our team of experts can provide the following services:
- Assessing and improving sustainability processes by conducting sustainability audits as part of the existing internal audit scope, as a stand-alone sustainability audit or as a deep dive into specific focus areas;
- Setting out ESG questionnaires and facilitating ESG risk workshops to increase knowledge, awareness, and ensure ownership is taken for these risks;
- Sustainability risk and control transformations ensuring that proper processes and controls are implemented and operating effectively to meet sustainability objectives;
- Critical assessment and review against sustainability standards (e.g. SA8000, GRI, ISO 26000).