Recent research shows internal audit functions are rarely involved in setting strategy for ESG or even in reviewing how goals are tracked and monitored. EY’s Kapish Vanvaria argues that ESG leaders should make friends with their internal audit colleagues — for everyone’s sake.
Companies are wrestling with the most urgent and complex issues our world faces today — environmental, social and governance (ESG). Internal audit (IA), internal controls (IC) and risk management should be at the hub, navigating the evolving regulatory requirements. At the same time, companies must meet the rapidly changing expectations of consumers, shareholders, employees and regulators — and show that they are a force multiplier for positive societal and environmental impact.
Managing ESG risks requires organizations to take a connected risk approach, while working closely with the third line of defense to assess specific key ESG controls.
Although most companies involve IA in some way with their ESG initiatives, a recent national survey also found that less than 30% of chief audit executives (CAEs) report that they are involved in one or more of the following:
- Providing advice on setting up ESG program goals and metrics
- Reviewing how the ESG…
