The Emerging Role Of Internal Audit In ESG
The role of internal audit in ESG (Environmental, Social, and Governance) is becoming increasingly important as companies in India are at different stages of ESG adoption. While larger multinational corporations have integrated ESG requirements into their audit plans, smaller companies are still new to ESG standards and frameworks. In India, ESG is currently viewed more as a regulatory obligation rather than a corporate responsibility towards the environment and society. However, ESG reporting is expected to become more widespread across larger businesses soon. Regulators, investors, customers, third-party affiliates, and society are placing greater emphasis on ESG performance. By implementing effective ESG strategies, companies can enjoy several benefits, such as improved access to capital, talent, and business opportunities. Challenges Faced For Internal Audit ESG Internal audit functions that are embarking on their ESG journey face several challenges, including the following: