With mandatory assurance of climate-related disclosures approaching, here’s how to get your data, processes, and reporting ready for scrutiny.
As sustainability reporting becomes more central to investor confidence and regulatory oversight, external assurance is shifting from best practice to baseline expectation. Globally, 40% of GRI-based sustainability reports already undergo assurance (IFAC, 2023), and with new mandatory climate reporting requirements on the horizon in Australia, that number is set to grow.
Under the Australian Sustainability Reporting Standards (ASRS), assurance over climate-related disclosures becomes mandatory from the first year of reporting, beginning with limited assurance and transitioning to reasonable assurance in Year 4. This phasing applies across Group 1, Group 2, and Group 3 entities. Assurance engagements must be conducted under ASSA 5000, the Australian sustainability assurance standard, with dates and obligations detailed in ASSA 5010, the assurance timeline standard. In short: assurance is now a legislated obligation, not an optional add-on.
Why assurance matters
Assurance enhances the credibility of sustainability disclosures and helps build trust with investors, regulators and stakeholders. It demonstrates a company’s commitment to transparency and continuous improvement in its sustainability practices.
There are two primary levels of assurance:
- Limited assurance involves a moderate level of review, where the assurance provider gathers less evidence than reasonable assurance, but sufficient to form a conclusion on whether anything has come to their attention that causes them to believe the disclosures are not fairly presented.
- Reasonable assurance offers a higher level of confidence that sustainability disclosure is free from material misstatement. The assurance provider collects extensive evidence to confirm the accuracy of the data and management controls, providing stakeholders with stronger confidence in the information disclosed.
Common challenges in assurance preparation
Many companies encounter hurdles when seeking assurance for their sustainability disclosures:
- Cross-functional coordination: Sustainability reporting often relies on inputs from multiple departments, creating complexity in data collection and quality control.
- Scope of assurance: Defining which topics, metrics and entities are covered by assurance can be complex. It may be difficult to align internal scope with what assurance providers are able to verify.
- Data gaps: Incomplete or inconsistent data, particularly for Scope 3 emissions, water use or supply chain metrics, can hinder the assurance process.
- Lack of supporting evidence: Key sustainability claims often require robust documentation, audit trails and calculations that are not always readily available or standardised.
- Data system limitations: Legacy data systems or spreadsheets may lack the traceability or version control necessary for audit-ready records.
Our solutions for preparing clients to be ‘assurance-ready’
Futureproof works with clients to get them ready for assurance by offering tailored support services, including:
- Assurance support: We assist in collecting documentation needed to support sustainability claims, improving internal controls and liaising with assurance providers during the audit process.
- Gap analysis: We evaluate existing management approach, data systems, processes and disclosures to identify any gaps against frameworks such as GRI Standards and ASRS requirements.
- Scoping support: We assist in defining the appropriate scope of assurance, including which metrics, entities and reporting boundaries should be covered.
Need help getting assurance-ready? Futureproof can support you with gap analysis, ASRS alignment and assurance preparation. Contact us.