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On the Frontlines: ‘No, You’re Not Auditing ESG’

The idea of an all-in-one ESG audit may sound appealing, but it’s a flawed approach, says David Dufek.

Environmental, social, and governance (ESG) are terms that have become part of the contemporary corporate lexicon — and a renewed focus of markets and regulators. While these concepts seem new and cutting-edge, many internal auditors are grappling with the notion of performing an all-encompassing ”ESG audit.” Worse yet, some auditors may be representing the work they do as sufficiently covering all things ESG.

The truth is that they’re not. It’s a far more nuanced and complex process than what the term implies.

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