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Integrating sustainability and operations audits

How internal audit can help keep sustainability transformation on course 

As companies ramp up environmental, social, and governance (ESG) initiatives, the internal audit function has an important role to play within the G in ESG—governance. Internal audit provides an independent, objective source of risk management, strategy, and oversight. However, it can be a challenge for internal audit to determine the best use of its resources to bring value to an organization’s sustainability priorities.

The risks around sustainability reporting and regulatory compliance are well-deserving candidates for consideration in an internal audit plan. However, it is important to also recognize strategic and operational risks, including the risk of not achieving publicly communicated targets and goals.  These are often overlooked or given less priority compared to the more conspicuous reporting and compliance risks. Our POV provides insights on how internal audit can play a role in helping to provide oversight into the effectiveness of organization transformation efforts, including:

  • Internal audit’s role on the sustainability steering committee
  • Integrating sustainability risks into the internal audit risk assessment
  • Selecting areas of focus for the internal audit plan
  • Building the ideal internal audit team
  • Building a sustainability risk reporting dashboard

How KPMG can help

KPMG helps clients address risks at any point along their sustainability journey. Our wide-ranging service offerings can support organizations’ internal audit functions, expand their sustainability capabilities, and improve the integration of sustainability considerations into strategy and risk management. 

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Integrating sustainability and operations audits

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