Internal Audit’s Strategic Role in Sustainability and ESG Transformation

The global rise of sustainability and ESG (Environmental, Social, and Governance) presents Internal Audit (IA) with a strategic opportunity to strengthen governance, build trust, and support long-term value creation. As regulatory demands increase and stakeholder scrutiny intensifies, IA is evolving from a compliance-oriented function to a proactive business partner. This paper offers practical guidelines and tools, including a four-stage maturity model, to support IA’s transformation. Drawing on international guidance, case studies, and regional insights, the paper demonstrates how IA can enhance ESG assurance, contribute to integrated risk management, and enable sustainable decision-making. These tools are designed to help IA deliver improved data reliability, clearer ESG insights for the board, and credible assurance that builds stakeholder confidence.