Independent third-party verification serves to bolster the credibility of disclosed non-financial data, providing assurance to management and shareholders that they possess a comprehensive overview of the organisation's performance.
An increasing number of stakeholder groups, particularly among lenders and investors, now seek third-party verification of a company's actual performance. This evaluation often pertains to ESG metrics related to specific products, such as green loans.
Stakeholders who delve beyond conventional financial information to make informed decisions through non-financial reporting strive to acquire data and insights from multiple reputable and unbiased sources.
Boards may not have control over all the information circulating about their company. Nonetheless, they do bear the responsibility for the information they provide to stakeholders, particularly as it pertains to the primary risks associated with their business operations. Such disclosures must be both precise and dependable, thereby ensuring trustworthiness.
Third-party verification can also achieve the following:
- Mitigate legal risks
- Ensure compliance with global standards
- Attract investment opportunities
- Identify vulnerabilities in the reporting process and control mechanisms.