Sustainability in business refers to practices that create long-term value by considering not only economic factors but also environmental and social impacts.
Sustainability and the natural environment have become central concerns in the business world in recent years. As climate change accelerates and environmental degradation continues, companies are under increasing pressure to adopt practices that are not only profitable but also socially responsible and environmentally sustainable.
This evolving landscape represents both a challenge and an opportunity for us auditors. The auditor’s role is traditionally associated with financial reporting. Still, as corporate social responsibility (CSR) and environmental, social, and governance (ESG) factors gain prominence, we auditors are now tasked with evaluating how companies manage and report their environmental impact.
This journal explores sustainability from my perspective, focusing on how environmental concerns affect auditing practices, the challenges we face in assessing sustainability reports, and the evolving role of auditors in promoting transparency and accountability in environmental matters.
Sustainability in business refers to practices that create long-term value by considering not only economic factors but also environmental and social impacts. The three pillars of sustainability—economic, social, and environmental—are often referred to as the “triple bottom line,” representing a holistic approach to business that balances profit, people, and the planet.
Economic Sustainability: Ensures that business operations are profitable and continue to grow over time.
Social Sustainability: Focuses on ensuring that business practices respect human rights, promote fair labor practices, and contribute to community welfare.
Environmental Sustainability: Involves minimizing negative environmental impacts, preserving natural resources, and addressing climate change through sustainable practices.
Auditors are increasingly being called upon to evaluate the environmental sustainability of an organization. This includes assessing whether a company’s environmental impacts are properly disclosed, whether the claims made in sustainability reports are accurate and whether its sustainability practices align with its stated environmental goals.
Overall, sustainability and environmental concerns are no longer peripheral issues for companies—they are central to their long-term success and reputation. As a result, auditors are taking on an increasingly important role in assessing environmental performance, verifying sustainability disclosures, and ensuring that companies adhere to ethical and regulatory standards related to the environment.
The challenges of assessing sustainability reports are significant for auditors, but they also represent a unique opportunity to add value to the audit process. By ensuring transparency and accuracy in environmental reporting, auditors can help build trust with stakeholders, mitigate the risk of greenwashing, and support companies in their journey toward greater sustainability.
In the future, auditors must continue adapting to the changing landscape of sustainability and the natural environment, embracing new methodologies, technologies, and collaborative approaches to ensure that companies report their environmental impact honestly and comprehensively.
The author is an MBA student at the Ramon V. Del Rosario College of Business of De La Salle University. She can be reached at camille_angeline_mendoza@dlsu.edu.ph.
The views expressed above are those of the author and do not necessarily reflect the official position of DLSU, its faculty, or its administrators.
