A new report by CSRHub, a data platform assessing corporate ESG performance, has confirmed that companies ensuring their ESG reports through AccountAbility’s AA1000 Assurance Standard (AA1000AS v3) receive higher ESG scores.
Titled AA1000AS Found to Add Value to ESG Reporting, the report highlights the role of external assurance in enhancing the credibility and quality of sustainability reporting. The findings indicate that companies issuing ESG reports see an average ESG rating increase of 5.4 points over two years—0.9 points more than non-reporting firms. Meanwhile, companies that assured their ESG reports using AA1000AS gained an average of 5.9 points, placing them in the top quartile of ESG-rated entities.
Regular adopters of the AA1000AS v3 standard demonstrated consistent year-on-year growth in ESG scores. The study also identified six sustainability subcategories where companies experienced significant improvements, including leadership ethics, board management, workplace health and safety, diversity and labour rights, compensation and benefits, and product indicators.
Sustainability experts widely regard ESG reports as a key data source for ESG rating agencies and investment research firms. As corporate sustainability disclosures grow in prevalence, so does scrutiny from stakeholders.
“The AA1000AS v3 provides a holistic way of holding an organisation accountable for its sustainability management, performance, and reporting practices by assessing its adherence to the AA1000 AccountAbility Principles,” said Sunil (Sunny) A. Misser, CEO of AccountAbility.
More than a data verification tool, AA1000AS v3 is designed to enhance accountability through a structured assurance framework based on four key principles: Inclusivity, Materiality, Responsiveness, and Impact.
Companies aligning with these principles and utilising AA1000AS standards benefit from:
- Greater credibility in sustainability reporting and compliance with external sustainability regulations.
- Improved transparency, fostering stronger relationships with investors.
- A culture of continuous improvement and innovation in ESG practices.
As the CSRHub report concludes, organisations that adhere to these standards consistently achieve stronger ESG performance and higher rating scores than those that do not.
