Sustainability and Internal Audit Innovating to add value 21 April 2016

Transcription

1 Sustainability and Internal Audit Innovating to add value

2 How Internal Audit can innovate to add value in an area that is becoming increasingly more significant in the eyes of its stakeholders

3 OR Why is Internal Audit IGNORING Sustainability?

4 Sustainability 101 PwC

5 What is sustainability? It s about Greenhouse Gases! Buy me a Tesla. It s about water use, we live in the desert! It s about how much waste we create, give me more recycling bins! It s about caring for the community, and charitable giving. It s a USP for our brand, it builds our reputation and helps us earn extra revenue. It s a way to cut costs, save money. 5

6 What is sustainability? It s all the above, it s about maintaining relevance PwC 6

7 Why is sustainability important? (Or why should I care?) PwC

8 Why is sustainability important? Revenue driver Cut costs Pull out of an important statistic goes in this area 11pt Georgia italic (white) Build Reputation Manage risks PwC 8

9 What should we be focusing on? PwC

10 What should we be focusing on? PwC 10

11 What should we be focusing on? It depends on where you are in your journey, but here are a few examples: Sustainability strategy; Governance, risk and compliance; Assurance and reporting; and Supply chain and operations. PwC 11

12 What should we be focusing on? 1) Sustainability strategy Developing and integrating a detailed sustainability vision into a long term strategic plan in a way that creates lasting value is a challenge. A strategy should: Identify issues and goals; Map short and long term ambitions, assess the risks and identify gaps in delivery, whilst explaining how targets will be achieved; Support the alignment and integration of a sustainability vision; and Develop and deliver a robust sustainability programme that includes prioritized initiatives, enablers, key performance indicators and measurable time-bound targets. PwC 12

13 What should we be focusing on? 2) Governance, risk and compliance There is a growing need to establish governance around sustainability. A well governed company will: Develop codes of conduct, policies and procedures; Win employee buy-in to the sustainability strategy; and Manage risks and regulatory compliance and understand the impact of these on your company s strategy and operations. PwC 13

14 What should we be focusing on? 3) Assurance and reporting Leaders understand the importance of setting bold sustainability metrics and making sure that open and timely reporting accurately reflects progress made. Companies reporting Sustainability should: Identify and assess relevant requirements of stakeholders; Undertake Internal Audits to gauge the effectiveness of Internal Controls and measures; Provide assurance of data in a sustainability report; Review submissions to sustainability indices; Review current reporting against best practices and identify operational improvements; and Align measurable sustainability objectives against strategic aims. PwC 14

15 What should we be focusing on? 4) Supply chain and operations Companies are looking at the impact their organization s have on the environment, as well as the positive or negative impact on the communities in which they operate. Companies should: Assess the risks associated with their supply chain and the steps necessary to protect their brand; Consider best practice from across a range of industry sectors; Define characteristics required from suppliers in order to make sure they re sustainable; and Monitor and manage environmental, social and governance risks associated with your supply chain. PwC 15

16 Assurance and reporting The basics Sustainability / CSR reports Environmental KPIs People Case studies Community development Suppliers A chance to tell your story PwC 16

17 Assurance and reporting The basics Sustainability / CSR reports Assurance Standards Reporting Criteria ISAE 3000 ISAE 3410 AA1000AS Used to set out how a company calculates their figures PwC 17

18 In summary Internal audit can help an entity determine where they are on their sustainability journey, identify what is missing and make recommendations to management We can test the accuracy and consistency of sustainability data included in reports We can verify if data is presented in line with a reporting criteria Internal Audit can educate the Audit Committee and management and help them better exercise their risk oversight responsibilities. PwC 18

19 Innovating to add value Questions? PwC 19

20 Thank you all for attending! James Munt +971 (0) PwC. All rights reserved. Not for further distribution without the permission of PwC. "PwC" refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firm's professional judgment or bind another member firm or PwCIL in any way.