ESG Assurance & Certification Services | Nainit Savla & Associates

ESG Assurance & Certification

Q: What is an assurance statement and what must it include?

An assurance statement identifies the subject matter assured, responsible party, applicable criteria (ISAE 3000, BRSR), procedures performed, inherent limitations, and the conclusion — signed by the CA partner. It is included in the sustainability report or BRSR filing.

Q: What is greenwashing and how does assurance protect against it?

Greenwashing is making misleading, exaggerated, or unsubstantiated environmental claims. Independent assurance prevents it by creating accountability for accuracy — companies with independently assured ESG disclosures are significantly better protected against greenwashing allegations.

Q: What are ESG ratings and how do they differ from ESG assurance?

ESG ratings are relative performance scores produced by agencies (MSCI, Sustainalytics, CRISIL) based on disclosed data and proprietary research. ESG assurance is independent verification of data accuracy against criteria. Ratings measure relative performance; assurance validates data credibility. Both are complementary.

Q: How should a company prepare for its first BRSR Core assurance engagement?

Document methodology for each KPI, ensure source documents exist for all data points, conduct an internal pre-assurance review, designate a single coordination point, and write a methodology note. Good preparation reduces assurance timelines and minimises external findings.

ESG assurance and certification convert self-reported sustainability claims into independently verified, credible disclosures that investors, regulators, lenders, and customers can rely on. As SEBI's BRSR Core assurance requirements expand across the top listed companies in India, and as global stakeholders demand higher levels of ESG data credibility, third-party assurance is moving from a voluntary best practice to a core compliance requirement. We provide ESG assurance engagements, certification support, and ESG rating preparation services that help companies meet regulatory obligations while building genuine, defensible credibility in their sustainability performance claims.

BRSR Core Assurance

Third-party limited assurance engagement over BRSR Core key performance indicators — mandatory under SEBI's expanding assurance requirements for listed companies, conducted in accordance with ISAE 3000 and ICAI guidance by practising Chartered Accountants.

GHG Verification (ISO 14064-3)

Independent third-party verification of greenhouse gas emissions inventories under ISO 14064-3 — verifying Scope 1, 2, and Scope 3 emissions claims against the GHG Protocol Corporate Standard with a formal verification statement.

Sustainability Report Assurance

Limited or reasonable assurance over standalone sustainability reports or integrated annual report ESG sections — covering all material ESG disclosures against GRI, TCFD, or other stated framework criteria.

ESG Rating Preparation

Advisory and preparation support for ESG rating agency assessments — MSCI ESG, S&P Global CSA, Sustainalytics, CRISIL ESG, ISS ESG, and CDP scores — including gap analysis, data room preparation, and questionnaire response support.

ISO 14001 Certification Support

Advisory on implementing an Environmental Management System (EMS) to ISO 14001 standard — supporting companies through gap assessment, system design, documentation, training, and internal audit readiness for third-party certification.

Pre-Assurance Readiness Review

Pre-assurance data quality review — assessing ESG data systems, internal controls, documentation completeness, and methodology consistency before the formal assurance engagement to minimise findings and speed up the assurance process.

Why ESG Assurance Is Becoming Non-Negotiable

Unverified ESG data is increasingly viewed with scepticism by sophisticated investors — who are aware that without independent verification, companies can select metrics that flatter their performance, exclude unfavourable data points, or use inconsistent methodologies year-on-year. The emergence of "greenwashing" as a regulatory and reputational risk has accelerated the push for mandatory assurance. SEBI's BRSR Core assurance mandate addresses this directly for Indian listed companies — making independent verification a regulatory requirement, not just a voluntary best practice signal.

Our assurance service pairs with ESG audit and ESG accounting to provide the complete chain from data collection through verification to credible external disclosure.

BRSR Core — Key Performance Indicators Requiring Assurance

GHG emissions — Scope 1 and Scope 2 (tCO₂e) with intensity per rupee of turnover
Total energy consumption — renewable and non-renewable with intensity metrics
Water withdrawal, consumption, and discharge with water-stressed area identification
Waste generated by type and disposal method
Percentage of women in workforce, management, and board
Median wages for permanent and other-than-permanent employees
Gross wages paid to differently-abled employees as percentage of total wages
Return to work rate and retention rate for employees after parental leave
Number of value chain partners assessed on BRSR and percentage meeting required criteria

Frequently Asked Questions

What is an assurance statement and what must it include?

An assurance statement is the formal output of the ESG assurance engagement — a document issued by the assurance provider (the CA firm) that is included in the sustainability report or BRSR to communicate the scope, methodology, and conclusion of the assurance work. A BRSR Core assurance statement must include: (a) identification of the subject matter (the specific BRSR Core KPIs assured); (b) the responsible party (the company management) and the assurance provider; (c) the applicable criteria (BRSR framework, ISAE 3000); (d) a description of the assurance procedures performed; (e) the inherent limitations of the engagement; and (f) the assurance conclusion — whether in a limited assurance negative form ("nothing has come to our attention") or a reasonable assurance positive form ("the information presents fairly"). The assurance statement is signed by the CA partner responsible for the engagement.

What is greenwashing and how does assurance protect against it?

Greenwashing refers to the practice of making environmental or sustainability claims that are misleading, unsubstantiated, or exaggerated — either through selective disclosure of positive metrics, use of vague terminology, or outright misrepresentation of environmental performance. SEBI, IRDAI, RBI, and international regulators have all issued anti-greenwashing guidance, and enforcement actions against greenwashing in financial products and corporate disclosures are increasing globally. Independent assurance is the primary mechanism for preventing greenwashing — because an assurance provider who independently verifies the stated ESG data and methodology creates accountability for accuracy. Companies with assured ESG disclosures are significantly better protected against greenwashing allegations than those with unverified self-reported data.

What are ESG ratings and how do they differ from ESG assurance?

ESG ratings are assessments of a company's ESG performance produced by rating agencies (MSCI, Sustainalytics, S&P Global, CRISIL ESG, etc.) — typically based on publicly disclosed information, direct company questionnaire responses, and the rating agency's proprietary research and analysis. ESG ratings express a relative performance score or ranking within a peer group. ESG assurance is an independent verification of specific ESG disclosures against stated criteria — it expresses a conclusion about the accuracy and completeness of the data, not a relative performance score. Companies often work to improve ESG ratings (by providing more accurate and complete data) and obtain assurance (to validate the credibility of their disclosures) — the two are complementary but serve different purposes.

What is ISO 14001 and what are its benefits for Indian companies?

ISO 14001 is the international standard for Environmental Management Systems (EMS) — it specifies the framework a company must put in place to manage its environmental impacts, comply with environmental laws, and continually improve its environmental performance. Certification to ISO 14001 by an accredited third-party certification body demonstrates to stakeholders that the company has a structured, independently verified environmental management system. Benefits for Indian companies include: enhanced credibility with international customers requiring supplier environmental management certification; improved environmental regulatory compliance; a framework for systematically identifying and managing environmental risks; preferential treatment in some government procurement processes; and a strong foundation for ESG reporting, since the EMS generates the operational data (energy, emissions, water, waste) needed for BRSR and GRI disclosures.

How should a company prepare for its first BRSR Core assurance engagement?

Preparing for a first BRSR Core assurance engagement involves: (a) understanding the specific BRSR Core KPIs that require assurance and confirming the data currently reported against each one is complete and traceable to source; (b) documenting the methodology used to calculate each KPI — emission factors, boundary definitions, data consolidation approach — in a written methodology note; (c) ensuring supporting documents exist for each data point (energy bills, waste manifests, HR records, etc.); (d) conducting an internal pre-assurance review to identify gaps before the external assurance team begins work; and (e) designating a single point of contact within the company to coordinate data and document requests from the assurance team. A company that invests in this preparation typically reduces assurance timelines and minimises the number of findings raised by the assurance team.

ESG Assurance That Goes Beyond Compliance

BRSR Core assurance, GHG verification, sustainability report assurance, and ESG rating preparation for listed companies and global supply chain participants across India.

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