COSO Framework and Sustainability
Leveraging the COSO Internal Control – Integrated Framework to Improve Confidence in Sustainability Performance Data
What You Measure Matters
Investors, financial analysts, and rating agencies around the world are increasingly seeking relevant and trustworthy corporate sustainability performance data on which to base their important business and operating decisions.
Sustainability performance data – often referred to as “nonfinancial,” “balanced scorecard,” “performance dashboard,” “environmental, social, and governance ESG),” and/or “integrated reporting” data - is rising in importance as organizations look to improve their enterprise performance systems and processes.
As a straightforward and practical approach to sustainability performance, this report utilized data from eight corporate case studies, executive interviews, and recommendations from third-party sources.
The authors of the report assert that the COSO principles on effectiveness – controls that are present, functioning, and integrated – could apply to all types of performance data including sustainability, using professional judgment.
Several key items from the COSO Framework’s foreword (dated May 2013) are emphasized within this report, including: The Framework has been enhanced by expanding the financial reporting category of objectives to include other important forms of reporting, such as non-financial and internal reporting.
To learn more about improving confidence in sustainability performance data for both internal and external decision-making, download this full report.