ESG in Audits: Lessons from the Change Maker Awards 2024

 As a financial auditor, I have been closely observing the rising prominence of Environmental, Social, and Governance (ESG) principles in business and finance. This shift toward integrating ESG into core business strategies is not just a trend but a profound transformation in how companies operate. The Change Maker Awards 2024, held in Dubai, reinforced the significance of this transition and underscored how ESG is reshaping our profession in meaningful ways.

Abhay Bhutada

The Importance of Accountability in ESG

The awards ceremony served as a platform to highlight the critical role of governance in advancing sustainability. With influential speakers like Faris Saeed, Chairman & CEO of SEE Holdings, and Fadi Al-Shihabi, Partner and Sustainability Solutions Leader at KPMG, the discussions illuminated how governance frameworks are evolving to include ESG metrics.

For auditors like me, the implications are clear: ESG reporting is no longer a voluntary initiative but an essential component of a company’s operational and financial transparency. Stakeholders, including investors and regulators, now demand robust disclosures on ESG-related matters. It is no longer sufficient for organizations to make lofty sustainability claims; auditors must verify their authenticity with the same rigor applied to traditional financial statements.

Also Read: How I See Executive Pay Through a Professional’s Lens


ESG in Auditing: A Paradigm Shift

Auditing ESG metrics requires a nuanced understanding of environmental, social, and governance challenges that businesses face. Unlike conventional financial data, ESG metrics often involve qualitative assessments, such as carbon footprint analysis, supply chain transparency, and labor practices. For financial auditors, this means expanding our knowledge base and embracing new methodologies to ensure these disclosures are accurate and credible.

The role of an auditor is evolving from being a watchdog of financial accuracy to becoming a key player in building trust and accountability in ESG reporting. Events like the Change Maker Awards emphasize that ESG integration is not just a compliance requirement but a strategic necessity that can determine a company’s long-term success.

Abhay Bhutada: A Case Study in Accountability

One of the most inspiring moments of the event was the recognition of CA Abhay Bhutada for his contributions to education and social initiatives through the Abhay Bhutada Foundation. His work stands as a shining example of responsible leadership and aligns perfectly with the principles of accountability that auditors strive to uphold.

The foundation’s efforts, such as distributing STEM kits to underprivileged students and funding scholarships, are not only impactful but also transparent and measurable. These initiatives demonstrate how financial resources, when managed with integrity, can create significant societal value. As auditors, we often assess whether funds are being used effectively, and Abhay Bhutada’s initiatives provide a model of how clear objectives and transparent reporting can foster trust.


Also Read: Honoring Global Leaders at the Change Maker Awards 2024 in Dubai

Takeaways for Financial Auditors

The Change Maker Awards 2024 delivered several key takeaways for auditors, particularly in the realm of ESG integration:

  1. The Growing Scope of Audits: With the increasing adoption of ESG standards, auditors must expand their expertise to evaluate non-financial metrics effectively. This involves gaining proficiency in areas like environmental science, ethical sourcing, and corporate governance frameworks.

  2. Building Credibility: The authenticity of ESG claims is paramount. Auditors are uniquely positioned to verify these claims, ensuring that businesses do not engage in “greenwashing” or exaggerated sustainability practices.

  3. Adapting to Change: The event highlighted that ESG integration is here to stay. Auditors must stay ahead of the curve by continuously updating their skills and methodologies to meet the demands of this new era of accountability.

Reflections on the Awards

For me, the Change Maker Awards was a reminder of the growing importance of our role as auditors in fostering transparency and accountability. By verifying ESG disclosures, we contribute to building trust among stakeholders and ensure that businesses operate responsibly.

The event also emphasized the collaborative nature of this journey. Leaders like Ankur Aggarwal, Chairman & Founder of BNW Developments, and Vivek Anand Oberoi, Co-Founder and Managing Director, spoke about the need for collective efforts in redefining global ESG standards. This collaboration is critical for auditors, businesses, and policymakers as we navigate this new landscape together.

A Call to Action

The awards ceremony was more than a celebration—it was a call to action for auditors to embrace their evolving responsibilities. It underscored the need to refine our skills and adapt to the growing demand for ESG integration in audits.

As a financial auditor, I feel inspired by the leaders and initiatives celebrated at the Change Maker Awards 2024. This event reinforced my belief that our work goes beyond financial numbers—it is about ensuring accountability, fostering trust, and contributing to a sustainable future. The road ahead may be challenging, but it is one that holds immense potential for positive change in our profession and beyond.

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