SUSTAINABILITY • ESG ASSURANCE
Assurance of Corporate Sustainability: A Study of BSE-SENSEX Companies
By CA. Anandaraj Saha & Dr. Satabdee Banerjee•Member of the Institute & Academician•The Chartered Accountant Journal • October 2023 (Vol. 72, No. 04, pp. 86–92)
“The nucleus of the issue is not whether corporates publish sustainability reports, but rather the approach through which they communicate it—whether it reflects a genuine commitment or merely a marketing tool risking greenwashing. Independent assurance on sustainability reports generates credibility, trust, and confidence among stakeholders.”
1. Assurance Standards & ICAI SSAE 3000
Two primary global frameworks govern sustainability assurance: ISAE 3000 (Revised) (predominantly used by professional accounting firms) and AA1000AS (used by non-accounting certifiers).
ICAI Standard on Sustainability Assurance Engagements (SSAE 3000): Issued by the Sustainability Reporting Standards Board (SRSB) of ICAI in January 2023; voluntary for periods ending March 31, 2023, and mandatory for assurance reports covering periods ending on or after March 31, 2024. Supplemental standard SAE 3410 governs Greenhouse Gas Statements.
2. Global Trends vs. BSE-SENSEX Empirical Findings
Global Context (IFAC/AICPA 2022)
- 92% of top global firms disclose ESG data; 58% obtain independent assurance.
- 61% of global assurance is performed by audit/accounting firms.
- 82% of global engagements provide Limited Assurance; 94% of accounting firms apply ISAE 3000.
BSE-SENSEX Companies Findings
- 83% (25 out of 30) of SENSEX firms obtained independent assurance (higher than global average).
- 52% of assurance was conducted by Chartered Accountant audit firms.
- 72% of engagements provided Limited Assurance; only 12% provided Reasonable Assurance.
- 84% adhered to ISAE 3000 (Revised) standards.
3. Breakdown of Assurance Practitioners (SENSEX Study)
| Nature of Assurance Provider | Number of Engagements | Percentage Share (%) |
|---|---|---|
| Accounting / Audit Firms (CAs) | 13 | 52% |
| Specialised Assurance Providers | 6 | 24% |
| Testing & Certification Firms | 3 | 12% |
| Engineering Firms | 1 | 4% |
| Others | 2 | 8% |
| Total | 25 | 100% |