high risk. The danger of greenwashing, which, when coupled with the potential lack of evidence and the assurance provider’s possible lack of familiarity with the subject matter and reporting framework, means that there is a high risk of issuing an inappropriate assurance opinion. There is a reputation risk for the assurance provider if they report positively on sustainability information that turns out to be incorrect, inaccurate or exaggerated. Added to this, the systems and processes generating sustainability information are quite new and therefore subject to change as the reporting landscape quickly evolves. Consequently, there is a higher risk of error in the information produced, although the public may be more forgiving of genuine mistakes than of deliberate manipulation of disclosures.
Providing assurance on sustainability information can be high risk.
SUSTAINABILITY ASSURANCE | GREENWASHING AND SUSTAINABILITY REPORTING RISKS
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