The COSO-ICSR Report aims to communicate the significance of implementing the COSO Framework for Internal Controls over Sustainability Reporting (ICSR), which represents a significant milestone following the implementation of COSO's Internal Controls over Financial Reporting (ICFR) in 2013. Within an organization, sustainability processes and reporting are seamlessly integrated into various operational aspects, making it an extension of financial reporting.

This integration necessitates the implementation of numerous interrelated control activities as an integral part of the sustainability reporting process.

As per the SBEI guidelines, sustainability reporting has become mandatory for the top 1000 listed companies and the top 150 companies in the BRSR Core for the fiscal year 2024-2025. Consequently, it becomes crucial for organizations to establish, monitor, evaluate, and report on internal controls specifically designed for sustainability reporting on a regular basis.

While reporting serves as the ultimate outcome, it is the controls that determine the sustainability of an organization. Therefore, both controls and reporting hold equal importance in establishing a sustainable business for the future. Given that investors, regulators, financial institutions, and other stakeholders seek assurance regarding sustainability reporting, it becomes imperative for top management to provide assurance on the effectiveness of controls and report them accordingly. Effectively managing sustainability risks relies on the assurance and reporting of controls alongside the reported information.

To sum up, ESG is crucial for businesses because it raises awareness of many climate challenges and pushes firms to adopt practises and regulations that are better for the environment, society, and corporate governance.

The risk assessment and internal controls framework for sustainability reporting can differ among organizations, depending on their materiality and scale of operations. Each organization has the flexibility to develop a customized plan to strengthen controls over sustainability reporting at a pace that aligns with its specific needs. As regulations pertaining to sustainability reporting continue to evolve, assurance becomes increasingly important in instilling confidence among investors, regulators, and all stakeholders, not only in financial reporting but also in sustainable reporting.