ERM CVS delivers a full suite of independently verified ESG and greenhouse gas (GHG) emission assurance services. From reporting gap assessments and pre-assurance to limited and reasonable assurance for sustainability programs and claims.
Reporting on ESG performance is an essential business practice that is expected by capital markets and stakeholders who are paying increased attention to disclosures.
Credibility with stakeholders, including investors and customers, can be achieved by ensuring that sustainability data is not only accurate but also validated and verified by a reputable independent assurance partner.
Greater confidence in ESG reporting, as well as identifying opportunities and mitigating risks, will drive long-term value creation, especially in relation to regulatory compliance requirements.
Decarbonization requires more than just publishing long-term goals. Organizations must also be able to demonstrate progress and success to build stakeholder trust in their sustainability and ESG strategy.
For organizations at an earlier stage in their sustainability reporting journey, an assurance readiness review can help uncover gaps in data coverage and methodology and highlight opportunities for process improvements.
An assurance readiness review provides organizations with critical and constructive feedback on KPIs, ESG targets and reporting processes. ERM CVS is skilled in identifying areas for improvement to enable clients to make their ESG and sustainability reporting more robust.
Credible reporting of GHG emissions is a vital component in any strategy to reduce an organization’s impact on the climate. Independent third-party assurance is the best way to test internal reporting processes, procedures, and controls, and confidently disclose emissions.
The importance of quantifying the GHG emissions generated by an organization’s activities cannot be understated when it comes to setting and achieving meaningful climate goals. Accurate GHG accounting prior to setting a science-based target (SBTi) enables businesses to set appropriate emission baselines and track progress towards internal and publicly reported targets.
Our GHG emission assurance services give clients and other stakeholders confidence that disclosures are accurate, reliable and correctly aligned with the protocols and standards against which they are reported.
Throughout our GHG assurance engagements, we leverage our deep subject expertise in reporting procedures, such as the Greenhouse Gas Protocol, and our subject matter expertise in emissions generation, to fulfil our role as an independent verifier. This means we review our clients work and data to identify methodology issues, coverage gaps and inaccurate data presentation. The result of our assurance process is that the GHG disclosures assured by ERM CVS are an accurate reflection of a client’s emissions.
Each ERM CVS assurance project is tailored to meet the specific needs of the client. This means standalone GHG-focused engagements are available, but GHG emissions assurance can also be integrated into a broader scope of ESG verification work.
Acting as an independent verifier, ERM CVS is distinctly positioned to identify areas for improvement in future reporting cycles. By leveraging our deep subject expertise, ERM CVS helps clients understand where the opportunities and risks lie by highlighting gaps and identifying areas requiring improvement. With more reliable information, organizations can make more informed decisions and drive impactful change.
We conduct our assurance against a large variety of reporting criteria including GHG protocol and Carbon Disclosure Project (CDP), ISO 14064:1; GRI, SASB, industry-specific criteria, etc. Our assurance is most often conducted in accordance with the globally accepted assurance standards (ISAE 3000 and ISO16064:3).
Presenting credible information has become an essential part of corporate reporting. External stakeholders, including investors, customers, governments and future employees, seek reliable and accurate information on sustainability performance - from carbon emissions to community engagement.
With the introduction of the EU Corporate Sustainability Reporting Directive (CSRD), which came into effect in January 2024, sustainability reporting for those organizations affected now has a wider scope and a sharper focus on business impacts. As well as outlining a comprehensive framework and specific guidelines on what and how to report, it also states organizations will require independent assurance of their sustainability report and metrics.
ERM CVS is an independent, specialist sustainability assurance and certification provider for global brands. Through a rigorous evaluation process, process conducted in accordance with global assurance standards, we review a client’s data and reporting processes to assess alignment to the reporting criteria and identify opportunities for improvement in relation to complex and diverse regulatory frameworks. This enhances confidence in the credibility of ESG reporting both internally and externally.
Independent assurance is provided in line with proven methodologies and strategic frameworks, frameworks and regulations, such as the International Sustainability Standards Board (ISSB), Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), CSRD.
Sustainability, KPI and CSR verification
Verifying the KPIs linked to sustainability and CSR targets is key to assessing progress and confidently reporting on goal attainment.
KPIs act as the measuring tool to quantitatively assess an organization's progress against their goals and objectives. Sustainability and CSR KPIs drive organizations to coordinate across corporate disciplines and stakeholders to deliver on corporate commitment to improving sustainability and CSR performance. Independent third-party verification of the data on which such KPIs are measured allows for the most accurate, reliable and transparent assessment of current and future progress.
Sustainability and CSR KPIs can cover a wide range of indicators. Whether it’s GHG emissions, safety performance ,diversity and inclusion or nature net gains, ERM CVS has the deep technical expertise needed to support global clients.
From company-defined KPIs to internationally recognized reporting and disclosure, such as GRI, ERM CVS provides clients with a trusted verification service that is backed by nearly 30 years of assurance experience.
Other reporting criteria such as the Taskforce for Nature-related Financial Disclosures (TNFD) and IFRS Sustainability, US SEC climate disclosure regulation are expected to gain momentum alongside the CDP, and GRI, and CSRD.
With our global ESG expertise, ERM CVS can verify a range of sustainability and CSR KPIs published in annual and sustainability reports as well as those used to support green financing, without relying on subcontractors.
ERM CVS helps organizations navigate global voluntary and regulated reporting requirements, including the CSRD, SEC disclosure rules, and California's Climate Disclosure Bills (SB 253 and SB 261), as well as voluntary standards like GRI and CDP, helping shape their sustainability strategies. ERM CVS can support your organization across your whole assurance journey, starting in any stage, across a wide variety of assurance scopes and at the l the level of assurance required.
Achieve regulatory compliance
Reduce reputational and operational risk
Secure stakeholder trust
Contribute to decarbonization targets
With the increase in regulatory reporting, organizations need to include reliable assurance for their reporting statements. Thanks to our experience and technical competency, ERM CVS contributes to the development and revision of international assurance standards. Being at the forefront of standards means we are best placed to support clients as they develop reporting frameworks.
ERM CVS has been supporting large global clients in various sectors with their ESG reporting journeys for more than 25 years. CSRD assurance is a natural progression for our experienced team.
Does CSRD impact your business?
The EU Corporate Sustainability Reporting Directive (CSRD) came into effect in January 2024, with organizations already reporting under the Non-Financial Reporting Directive (NFRD) making their first disclosures in 2025. Reporting for all other large companies commences in 2026 followed by small and medium-sized enterprises with at least 250 employees in 2027.
Non-EU companies that operate in the EU may well fall under the CSRD regulation if:
What’s expected from organizations?
As well as outlining comprehensive ESG disclosure requirements and data points, CSRD states that independent assurance is required from the outset That means a company’s first report and metrics must include at least limited limited assurance. In the long run reasonable assurance will be required.
Early preparation for CSRD is essential given the breadth of the reporting expected. Companies will need robust processes and digital tools to effectively capture, control and analyze the large volume and variety of ESG reporting data and to maintain disclosure accuracy.
Where to start?
Assessing current material sustainability impacts, risk and opportunities in line with CSRD’s double materiality requirements is a key first step. Companies should then consider whether existing processes and controls are robust enough to manage the collection of the quantitative and qualitative information needed for reporting.
Undertaking an assurance readiness assessment of current reporting processes, controls and data can prove valuable for companies new to assurance or to disclosing detailed ESG performance metrics. Assurance readiness, when conducted with the rigour of a full assurance process, effectively acts as a confidential ‘dry run’ without the risk of having to publish a qualified assurance opinion. The process helps companies identify areas requiring immediate focus or more resources.
When obtaining limited assurance or pre-assurance for CSRD disclosures, it’s important to engage auditors with the science-based, sustainability subject matter expertise to fully understand the reporting metrics and methodologies. This will ensure disclosures are complete, accurate and relevant, minimizing financial and reputational risk and improving business performance.
Though implementation is currently paused, In March 2024, the US Securities and Exchange Commission (SEC) took a significant step toward climate-related transparency by issuing new climate disclosure rules for companies registered with the agency.
The rules borrow structure, definitions, concepts and some specific requirements from the Task Force on Climate-related Financial Disclosure (TCFD) and GHG Protocol for greenhouse gas emissions.
Reporting requirements include material scope 1 and scope 2 GHG emissions and disclosures on material climate-related risks. For some, the regulations impact annual reporting as early as the year ending December 31, 2025.
The new rules provide companies with an opportunity to gain competitive advantage in the low-carbon economy based on their climate-related disclosures and achievements.
The SEC acknowledges the need for a smooth transition and has implemented a phased compliance schedule based on company size and the complexity of disclosures. This provides companies with an opportunity to evaluate their climate reporting practices and identify possible gaps with the SEC's requirements.
The regulation appropriately allows ERM CVS to conduct the required assurance, in accordance with the globally recognized standard referenced in the regulation (ISAE 3000).
ERM CVS is Accredited by the California Air Resources Board (CARB) to provide GHG reporting data verification services to organizations that must comply with the California Global Warming Solutions Act of 2006 (AB32).
The regulation covers electricity generators, industrial facilities, fuel suppliers and electricity importers.
CARB's mission is to promote and protect public health, welfare and ecological resources through effective reduction of air pollutants while recognizing and considering effects on the economy. CARB is the lead agency for climate change programs and oversees all air pollution control efforts in California to attain and maintain health-based air quality standards.
ERM CVS supports organizations across the entire assurance journey and has a wealth of subject-matter, science-based technical expertise. This depth of technical competency enables us to support all aspects of the assurance process and appropriately review and challenge the accuracy and relevance of ESG disclosures, helping to minimize financial and reputational risk and improve business performance for our clients.
Our assurance approach and methodology has been developed and is conducted in accordance with the most broadly accepted and used assurance standard (ISAE 3000, soon to be ISSA 5000), which is governed by the same quality control and independence criterion as financial auditing.
The ERM CVS global team comprises both sustainability professionals and Certified Public Accountants (CPAs) focused solely on ESG assurance services. This means we can provide support for the following areas:
Going beyond assurance for individual KPIs, whole or full report assurance provides comfort to stakeholders that disclosures are fair and accurate.
For whole report assurance, ERM CVS not only assesses the accuracy and reliability of the content, but also whether a client’s reporting focus is appropriate and sufficient. This involves assuring a report’s narrative, claims and assertions as well as the underlying data.
As sustainability considerations become increasingly central to commercial competitiveness and operational excellence, integrating sustainability performance across an entire report can be highly beneficial. This, however, requires a more holistic approach to assurance. Whole report assurance is designed for this purpose and can be offered on its own or in conjunction with assurance of specific indicators.
As part of this process, ERM CVS evaluates whether a complete and balanced presentation of sustainability activities and performance has been reported in accordance with relevant standards, guidelines and requirements. In the case of whole report assurance, these commonly include:
