Abstract

As environmental, social, and governance (ESG) considerations gain prominence in investment decisions and corporate accountability, the demand for reliable, standardized, and transparent ESG audits has intensified. However, disparities in global reporting standards, fragmented disclosure practices, and limited audit assurance frameworks have impeded the consistency and credibility of ESG evaluations. This paper introduces a novel auditing framework designed to bridge these gaps by aligning ESG assessments with international disclosure norms and evolving investor expectations. The proposed framework integrates core principles from leading standards—including the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards—into a unified and verifiable auditing protocol. This framework emphasizes materiality mapping, sector-specific indicators, and risk-adjusted evaluation metrics to enable more nuanced, data-driven assessments of ESG performance. By embedding audit controls at each phase of ESG data generation, reporting, and validation, the model ensures greater accountability, reduces greenwashing, and enhances comparability across jurisdictions and industries. Furthermore, it leverages digital tools, such as blockchain for immutable data trails and AI-powered analytics for real-time insights, to improve audit traceability and responsiveness. Incorporating stakeholder engagement mechanisms, the framework also ensures inclusivity and relevance, aligning corporate ESG disclosures with the concerns of investors, regulators, and civil society. It supports scalable implementation for both large corporations and small-to-medium enterprises, fostering global ESG convergence and investor confidence in sustainability claims. Nevertheless, successful adoption requires overcoming challenges such as limited auditor expertise, regulatory misalignment, and technological integration barriers. This paper concludes by offering policy and practice recommendations for auditing bodies, corporations, and regulators to collectively refine and deploy standardized ESG audit methodologies that are both flexible and enforceable.