Article By : ICAEW Insights

Article Search : Mohd Syairol Azwan Shabudin (Akauntan, Bahagian Audit Dalam)

ESG (Environmental, Social & Governance) reporting is now an important component of an organization's governance and transparency, in line with the increasing demands of stakeholders, regulators  and global markets. A recent article published by the Institute of Chartered Accountants in England and Wales (ICAEW) asserts that the accounting profession plays a strategic role in ensuring that ESG reporting is accurate, reliable and based on strong internal controls.

ICAEW highlights several critical issues in ESG reporting today, including metric inconsistency, lack of technical expertise, increased compliance requirements, assurance gaps  as well as reliance on manual systems. These issues pose a risk to the credibility of reports and the accuracy of the information presented to bettors. In this context, accountants are best positioned to streamline reporting standards, build integrity data collection processes, and ensure the provision of evidence and documentation that facilitates the audit process.

Additionally, this article emphasizes that ESG is not just a social responsibility initiative, but is part of risk management, organizational strategy, and long-term financial performance. Therefore, the involvement of accountants is critical in linking ESG data to financial results and integrating sustainability reporting into existing management systems.

Overall, this ICAEW article outlines the need to strengthen the role of accountants in an organization's sustainability agenda through capacity building, the adoption of international reporting standards as well as the implementation of a more integrated data system. This role will become increasingly important in line with the evolution of the global governance landscape and increasing expectations for organizational transparency and accountability.

Sources : https://www.icaew.com/insights

Published : 03 Feb 2025

Date of Input: 27/11/2025 | Updated: 27/11/2025 | faiz_suparman