Assessment of sustainability risk management in financial services institutions

Disclosing Environmental, Social, and Governance (ESG) information is crucial in today’s business environment because it allows investors, stakeholders, and consumers to make informed decisions about a company’s impact on the environment, society, and governance practices. Furthermore, ESG information has been linked to better long-term financial performance and it is increasingly used by investors as a measure of a company’s overall health. As a result, companies that prioritize ESG issues are likely to be seen as more attractive investments. The transformation of the economy currently taking place through the shift in sustainability in the areas of ESG has far-reaching implications for the financial sector. Disclosing ESG information can come with financial risks for companies. Assurance of ESG information through internal auditing provides internal auditors with an opportunity to demonstrate their value to the organization by providing assurance on the integrity of the company’s ESG data and reporting, identifying and mitigating risks, and improving the company’s ESG performance and reporting, which can ultimately support long-term financial performance.


The recently published guideline by the German chapter of the IIA is intended to support internal auditors of financial services institutions in designing a structured and target-oriented readiness assessment and in evaluating the management of sustainability risks.
You can download the full guideline here.
The guideline is also available in english.