Achieving Effective Internal Control Over Sustainability Reporting

The ISSB issued IFRS S1 and S2 for consistent climate reporting, with IFRS S2 effective in 2024. The SEC is developing rules for climate and ESG reporting. COSO released guidance on internal controls for sustainability reporting (ICSR) to enhance trust, as studies show distrust in ESG data. The COSO framework aligns financial and non-financial reporting, benefiting businesses of all sizes. It helps prevent greenwashing, integrates ESG into decision-making, and ensures reliable sustainability reporting.