Summary of "SDG & ESG Assurance | CA Final Sep'25, Jan'26, May'26 Revision Video | Ankush Chirimar"

Summary of “SDG & ESG Assurance | CA Final Sep‘25, Jan‘26, May‘26 Revision Video | Ankush Chirimar”

This video by Ankush Sharma covers Sustainable Development Goals (SDGs) and Environment, Social, and Governance (ESG) assurance, focusing on their relevance for CA Final exams. It is tailored to help students understand key concepts, frameworks, principles, and assurance methodologies related to sustainability reporting and ESG, with an emphasis on exam-oriented points, especially MCQs.

Main Ideas and Concepts

1. Introduction to SDGs and ESG Assurance

SDGs and ESG assurance are important chapters in the CA Final syllabus.
Focus on MCQs and important descriptive questions to score well.
Sustainable development is defined as meeting present needs without compromising future generations (Brundtland Report).

2. Sustainability Reporting

Public reporting on Economic, Environmental, and Social (EES) impacts.
Reports contributions (positive or negative) towards sustainable development.
Benefits include long-term value creation, business continuity, and stakeholder understanding of organizational performance.

3. Three Pillars of Sustainability/ESG

Environment: Climate change, natural resource use, pollution, opportunities.
Social: Human capital, stakeholder relationships, community engagement.
Governance: Corporate governance, internal controls, policies, and procedures.

4. Sustainability Reporting Frameworks

Global Reporting Initiative (GRI): Most widely used; adopted by 93 of the world’s largest 250 companies.
Carbon Disclosure Project (CDP): Focuses on greenhouse gas emissions, water, forests, and supply chains.
International Integrated Reporting Framework: Covers Six Capitals (Financial, Human, Intellectual, Natural, Social, Manufactured) with mnemonic techniques to remember.

5. Sustainable Development Goals (SDGs)

Introduced by the UN Department of Economic and Social Affairs.
17 goals; students should recognize all and identify which are not SDGs in MCQs.
Companies contribute to SDGs through innovative solutions.

6. Global Trends and Mandatory Reporting

Mandatory sustainability reporting applies to large, listed, multinational companies.
Emphasis on frameworks and compliance deadlines.

7. Business Responsibility and Sustainability Report (BR SR)

Applicable to the top 1000 listed companies.
Three sections:
- General Disclosures
- Management Process and Disclosures
- Principle-wise Performance Disclosures (9 principles)
Disclosures divided into Essential (mandatory) and Leadership (optional) indicators.

8. Nine Principles of BR SR

Presented with a mnemonic/story to aid memorization.
Principles cover ethics, transparency, employee well-being, stakeholder respect, human rights, environmental protection, policy advocacy, inclusive growth, and responsible consumer value.
Each principle has core elements; exam questions may focus on principles or their elements.

9. Key Principles Highlights

Ethics and Transparency: Policy making, stakeholder communication, no compromise.
Employee Well-being: No child/bonded labor, respect for seniors, work-life balance, timely living wages.
Stakeholder Interests: Identification and communication of impacts.
Human Rights: Integration and respect in policies.
Environmental Protection: India’s net zero commitment, optimum resource use, industry best practices, impact assessment.
Policy Advocacy: Participation in trade groups, advocacy for fair competition.
Inclusive Growth: Avoid displacement, fair compensation, support marginalized communities.
Consumer Value: Fair marketing, non-misleading advertising, universal access, product usage and disposal info, grievance redressal.

10. Assurance on BR SR and ESG Reports

Assurance process includes preliminary review, site assessment, submission of findings, response review, and issuance of assessment report.
Standards on Sustainability Assurance Engagement:
- SSAE 3000: General sustainability assurance.
- SSAE 3410: Assurance on greenhouse gas statements.
Assurance users include the entity, assurance provider, and report users.

11. Role of Auditor in Climate-Related Risks

Auditors must consider climate-related risks when auditing financial statements.
Reference auditing standards: ASA 200, ASA 315, ASA 701, ASA 706, ASA 720.
Importance of transparency on climate matters in audit reports.
Investors increasingly focus on climate risk disclosures.

Detailed Methodology for Assurance on BR SR

Assurance Process:
- Conduct preliminary review at auditor’s office.
- Perform on-site assessment of ESG/BR SR reports.
- Submit findings to the entity.
- Obtain and review entity’s response.
- Prepare and issue the assurance report.
Assurance Standards:
- SSAE 3000: Assurance on sustainability information.
- SSAE 3410: Assurance on greenhouse gas emissions statements.
Auditor’s Role:
- Obtain reasonable assurance that financial statements are free from material misstatement due to climate risks.
- Understand the entity and its environment including climate risks.
- Reference relevant auditing standards.
- Evaluate disclosures related to climate risks.
- Report on consistency of information with annual reports.

Speakers / Sources Featured

Ankush Sharma (Chirimar): Main speaker and instructor delivering the entire lecture.
Mention of a friend named Raghav who provided mnemonic techniques for memorizing the nine principles of BR SR.

This video is a comprehensive revision resource focusing on SDG and ESG assurance concepts, designed to help CA Final students grasp exam-relevant topics efficiently, with a strong emphasis on MCQ preparation and understanding assurance standards and auditor responsibilities related to sustainability.