Specialise in: ESG assurance

‘I believe ESG assurance will be as critical to investor trust and business resilience as financial audits are today,’ says Sofija Bogicevic ACCA, senior manager for ESG assurance and advisory at PKF Serbia. ‘With regulations like the Corporate Sustainability Reporting Directive and evolving global standards, including International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, the demand for professionals who understand both financial and non-financial reporting will only grow.’

Career scope

The aim of an ESG assurance professional is to perform procedures to express a conclusion on whether the information disclosed in a sustainability report complies with the applicable sustainability and reporting standards. The role also includes supporting clients in establishing ESG strategies so they comply with increasing regulatory requirements, as well as various legal and environmental standards, while managing risk, remaining competitive and meeting growing investor and stakeholder expectations.

ESG assurance can mean working with environmental and social professionals, engineers, scientists and data analytics specialists to provide the broad expertise required to collate and interrogate often disparate data sets and information. ‘Many companies encounter obstacles, such as the complexity of sustainability data gathering and a lack of ESG expertise,’ says Bogicevic.

ESG assurance professionals are very often auditors who have either folded ESG into their financial assurance engagements or, depending on the size of the firm and the scope of its client base, moved into dedicated ESG teams and services.

Audit professionals bring expertise in reporting, especially in interpreting standards, planning the process and managing performance. All of these transfer directly to sustainability reporting, as does the concept of materiality, to which Bogicevic gives special mention.

‘When it comes to sustainability reporting, it’s important to note that many professionals working in ESG – particularly those without an audit or accounting background – are often unfamiliar with the concept of materiality, which becomes especially significant with the introduction of the European Sustainability Reporting Standards and the double materiality concept,’ she says.

‘Double materiality requires evaluating sustainability issues from both an impact perspective, which looks at how a company affects the environment and society (the inside-out view), and a financial perspective, which considers how sustainability issues influence the company’s financial performance, cashflows, capital and enterprise value – an approach that accountants are already well versed in due to their training and experience, making their role in ESG increasingly vital.’

Getting in and getting on

With ESG and sustainability reporting growing rapidly, employers are looking not just for technical compliance, but for professionals who can connect financial and non-financial information and understand value creation beyond the balance sheet.

Accountants are well suited for ESG roles due to their analytical skills and experience with complex reporting frameworks, making them able to link operational, social, environmental and financial data more effectively.

‘Data quality and analytics are critical, as ESG data is often fragmented and inconsistent or collected manually across business units,’ Bogicevic says. ‘That’s why the use of specialised ESG software is becoming increasingly critical, not only to streamline data collection but also to ensure comparability and ultimately ease the assurance process.’

Soft skills are vital, particularly a continuous learning mindset to remain ahead of ESG’s fast-moving curve, and the ability to communicate clearly and establish cross-functional alignments. ‘ESG engagements are inherently collaborative, and delivering high-quality outcomes depends on the ability to work across disciplines and build trust with both clients and internal teams,’ Bogicevic says.

ACCA members are well placed to bring value to this burgeoning field. ‘ACCA is globally recognised and membership signals commitment to high standards of professionalism and ethics. Plus I am kept up to date with global regulatory developments in sustainability reporting,’ Bogicevic says.