Verification, assurance and certification
Obtain third-party validation of information on practice and performance
Description
Verification and assurance
For effective decision-making and management, organisations
A term used by the Platform to group enterprises, investors and financial institutions of all types. Source: Impact Management PlatformOrganisation
The process of establishing whether information on the organisation’s impact
The effect(s) of organisations' actions on people and the natural environment.Impact
Assurance goes a step further. It is the process of evaluating an organisation’s information against suitable criteria and standards in order to increase confidence in the information. Assurance engagements are conducted with limited assurance (negative attestation that the attester is unaware of any significant issues) or reasonable assurance (affirmative attestation that all information is fairly stated).
Assurance should be conducted by an independent, competent and qualified attestation service provider in accordance with high quality, internationally recognised assurance standards. The third-party assurer and the organisation agree the underlying subject matter, as well as suitable criteria, which can include the assurance of practice or performance information, or both.
While organisations typically establish their own, internal, verification and assurance processes, See Monitor, learn and adapt for more information on this process third-party assurers (such as chartered or certified accountants) can help ensure that the sustainability information is accurate and reliable. While third-party verification and assurance entail a higher work and cost burden to organisations, they are becoming synonymous with good impact management practice, much as they already are for financial management. See Governance for more information
Nonetheless, it is important to note that, in some instances, it may not be realistic to seek third party assurance. This may be the case for smaller organisations. Instead, such organisations might consider inviting representatives of the affected parties to review information and to validate whether it constitutes a fair and true representation of the affected parties’ experience. Larger companies will have more resources to conduct assurance, although systematically assuring all information may not be realistic. For this reason, regular and prioritised assurance practices should be established and communicated.
Certification
Organisations that want confidence that their performance or processes have met a certain required level of attainment can seek certification
The action or process of providing someone or something with an official document attesting to a status or level of achievement. Source: Oxford English DictionaryCertification
Resources
Resources that set expectations on verification and assurance
For all enterprises:
OECD Guidelines for Multinational Enterprises
The Guidelines for Multinational Enterprises are a set of voluntary principles and standards that promote responsible business conduct among multinational enterprises (MNEs). They cover various areas, including human rights, labour relations, environmental protection, anti-corruption and consumer protection, aiming to help MNEs align their business practices with societal expectations, and contribute to sustainable development.
This is a cross-cutting resource, meaning that it supports the internal impact management process as a whole, rather than one or a few of the Actions of Impact Management.
OECD Due Diligence Guidance for Responsible Business Conduct
The Guidance provides practical support to enterprises seeking to implement of the OECD Guidelines for Multinational Enterprises, through plain language explanations of its due diligence recommendations and associated provisions.
This is a cross-cutting resource, meaning that it supports the internal impact management process as a whole, rather than one or a few of the Actions of Impact Management.
SDG Impact Standards for Enterprises
The SDG Impact Standards for Enterprises provide a practical guide and self-assessment tool for integrating the Sustainable Development Goals (SDGs) into organisational decision-making.
This is a cross-cutting resource, meaning that it supports the internal impact management process as a whole, rather than one or a few of the Actions of Impact Management.
For investors and financial institutions:
Reporting and assessment framework
Tool to report on responsible investment activities annually.
This resource calls upon organisations to:
- Communicate: Report on firm-wide and portfolio or strategy-specific investment practices.
SDG Impact Standards for Private Equity Funds
The SDG Impact Standards for Private Equity Funds provide a decision-making framework for integrating the Sustainable Development Goals (SDGs) into one or more funds.
This is a cross-cutting resource, meaning that it supports the internal impact management process as a whole, rather than one or a few of the Actions of Impact Management.
Principles for Responsible Banking
The Principles for Responsible Banking (PRB) guide banks in aligning their business strategies with society’s goals, as well as promoting sustainability. These principles aim to encourage banks to play a crucial role in achieving global sustainable development objectives, including addressing climate change, promoting financial inclusion and fostering sustainable economic growth.
This is a cross-cutting resource, meaning that it supports the internal impact management process as a whole, rather than one or a few of the Actions of Impact Management.
Impact Standards for Financing Sustainable Development (IS-FSD)
The Impact Standards for Financing Sustainable Development (IS-FSD) is a framework for donors, development finance institutions (DFIs) and their private partners to make financial decisions that maximise their positive contribution to the SDGs. The Standards are harmonised with the UNDP SDG Impact Standards.
This is a cross-cutting resource, meaning that it supports the internal impact management process as a whole, rather than one or a few of the Actions of Impact Management.
Verification and assurance standards and providers
Assurance/verification standards:
AA1000 Assurance Standard
A set of criteria that demonstrates adherence to AccountAbility’s four principles: inclusivity, materiality, responsiveness and impact. Assurance using this assurance standard can cover an organisation’s practices as well as sustainability performance information.
Use this resource to:
- Verification, assurance and certification: Assure a report or the organisation’s practices with reference to the AA1000. The subject matter for an assurance engagement is not pre-defined in the AA1000, meaning this assurance standard is commonly used to assure external reports prepared according to other reporting standards.
International Standard on Assurance Engagements 3000 (Revised)
A standard for assurance professionals that covers any assurance engagement other than audits or reviews of historical financial information.
Use this resource to:
- Verification, assurance and certification: Organisations may require that their third-party assurance providers apply this standard to ensure adherence to global best practices.
Assurance and verification providers:
Report Assurance Standard
Report Assurance standard that provides criteria to assess the application of SVI’s Social Value Principles as evidenced in a report. Assurance is conducted acting in the interests of the affected stakeholders, an important distinction versus other assurance standards that are currently available.
Use this resource to:
- Assure a report that has been prepared in accordance with the Principles of Social Value. The Principles of Social Value and associated practice standards help organisations measure and manage the social value generated through their business activities. This means the assurance standard is best applied to a report that has been prepared in accordance with the principles from the outset. The assurance standard is used to assess application of the principles, it does not assure accuracy of performance information.
Certification standards and providers
Certification standards:
ISEAL Codes of Good Practice
ISEAL’s Codes of Good Practice is a globally recognised framework that defines practices for effective and credible sustainability systems.
Use this resource for the following Actions of Impact Management:
- Verification, assurance & certification: Provide a framework for assessing compliance with standards, so that consumers, supply chain partners, investors and other stakeholders know they can trust the results of assessments. It encourages assurance that is rigorous and accessible, providing accurate and transparent results.
ISEAL Credibility Principles
ISEAL’s Credibility Principles define the core values of credible and effective sustainability systems. They provide the foundations for systems to deliver greater impact.
Use this resource for the following Actions of Impact Management:
- Verification, assurance & certification: Support the development and use of credible and effective market-based initiatives like sustainability standards and tools.
Certification providers:
B Corp certification
The B Corp Certification is an assessment process that evaluates a company’s social and environmental performance, as well as governance and transparency. Organisations that achieve B Corp Certification demonstrate a commitment to meeting a high standard of responsible business practices and accountability.
Use this resource for the following Actions of Impact Management
- Verification, assurance and certification: Achieve B Corp certification by meeting the standards set by B Lab, demonstrating a commitment to social and environmental performance, accountability and transparency.
- Benchmarking and rating: Compare impact scores and metrics with those of other organiations within the same industry or sector.
Social Value Management Certificate
This certification process assesses to what extent the Principles of Social Value are embedded in an organisation’s systems and processes. The certificate has three levels that set out a progression pathway for organisations looking to continuously improve how they optimise social value for their stakeholders.
Use this resource for the following Actions of Impact Management:
- Verification, assurance and certification: Certify that an organisation’s systems and processes adhere to the Principles of Social Value.
Green Bond Principles
The Green Bond Principles (GBP) seek to support issuers in financing environmentally sound and sustainable projects that foster a net-zero emissions economy and protect the environment.
Use this resource for the following Actions of Impact Management:
- Implement: Use global guidelines that outline best practices when issuing bonds serving social and/or environmental purposes.
- Verification, assurance and certification: Illustrate alignment with the four core components of the GBP.
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