ESG KPI Verification & Assurance

ESG KPI verification and assurance is an independent, third-party service that validates the metrics and targets set as part of an organization’s ESG disclosures. It also provides a statement from SGS to confirm the accuracy and reliability of your ESG claims, together with expert opinions on your ESG KPIs.

Why do your ESG KPIs need verification and assurance?

Greenwashing has recently been a concern, not only for customers but also for investors, financial institutions and authorities. Consequently, organizations are facing pressure to engage in real, sustainable business practices to secure sustainable finance, an initial public offering (IPO), acquisition and other business collaborations. Verifying and assuring the data of ESG KPIs increase the confidence of your investors, financial institutions and partners, and is an essential compliance process in:

• Due diligence
• Risk evaluation
• Risk management
• Sustainable finance

What are the benefits?

• Reduce borrowing costs through sustainable finance transactions
• Greater preparation for an IPO
• Validate your ESG claims
• Ascertain the ESG performance of your suppliers
• Facilitate due diligence processes
• Reveal potential non-compliances

How are ESG KPIs verified and assured?

We can conduct desk-based reviews, interviews with the management and review of documented evidence to verify and assure your ESG metrics and targets. Your data management processes and systems, including internal controls, can also be evaluated, giving you recommendations to improve the processes of disclosure and reporting in future reporting cycles.

SGS as an approved verifier

We have been working with different international organizations to verify and assure the ESG metrics and targets claimed by their customers and suppliers. We are an approved third-party verifier for assessing whether an issuer and green bond meet certification requirements against the Climate Bonds Initiative’s (CBI) Climate Bonds Standard.

As an independent, third-party verifier, we can also partner with you to ensure that your customers and suppliers are consistently and accurately meeting their ESG KPIs.

Why SGS?

We are a leader, not only in providing ESG services for over 30 years but also as an active participant in demonstrating best practices.

Our ESG experts actively contribute to developing international standards, frameworks, schemes and regulations, such as the Global Reporting Initiative (GRI), Task Force on Climate-Related Financial Disclosures (TCFD), EU’s Corporate Sustainability Reporting Directive (CSRD) and International Sustainability Standards Board (ISSB).

We also lead by example. Our sustainability leadership has been recognized internationally. SGS was rated PRIME by ISS ESG Corporate Rating and AAA in the MSCI ESG Ratings assessment. Our ESG practices are further reinforced by SGS Sustainability Ambitions 2030, which set ambitious targets across our whole value chain and foster a culture of sustainability.

With extensive experience in all major industries, we understand each sector’s pain points and have the technical expertise and logistical capabilities across the globe to ensure realistic sustainability outcomes.