Audit of State-Run Companies for ESG Compliance
The Comptroller and Auditor General (CAG) of India is evaluating the compliance of approximately 30 listed and 19 unlisted state-run companies with the Securities and Exchange Board of India's (SEBI) environmental, social, and governance (ESG) reporting framework. This initiative is part of CAG's effort to integrate sustainability criteria into government audits.
SEBI's ESG Reporting Framework
- The compliance assessment will be based on SEBI's Business Responsibility and Sustainability Reporting (BRSR) framework.
- BRSR is mandatory for the top 1,000 listed companies, encompassing a wide range of ESG aspects.
- Environmental: Resource management, emissions, biodiversity, climate change mitigation, and adaptation.
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- Social: Employee well-being, community engagement, human rights.
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- Governance: Board diversity, ethics, anti-corruption measures, risk management.
Centre of Excellence for Financial Audit
A Centre of Excellence (CoE) for financial audits will be established in Hyderabad to enhance audit methodologies across departments.
- The CoE aims to incubate global best practices, develop advanced skills, and standardize high-quality audit methodologies.
- The centre will soon be launched by CAG K Sanjay Murthy.
Transformative Directives from the Accountants General Conference
During the 32nd Accountants General Conference, CAG issued a directive to integrate audit and accounts functions.
- Accounts offices are seen as "goldmines" of financial data that can aid audit processes.
- The directive aims to create a seamless bridge between audit and accounts for efficient data utilization.