The Importance of the Audit Integrity Process in ESG Due Diligence

by amfori created 2024-12-23T17:08:40+07:00
In today’s interconnected business landscape, environmental, social, and governance (ESG) standards are no longer optional — they are essential for sustainable growth. Companies operating within global supply chains are facing mounting pressure to demonstrate their commitment to ethical practices and responsible operations. To fulfill this commitment, robust ESG due diligence processes are essential, and these processes rely heavily on the integrity and quality of the audits.In response to this current situation, amfori has consolidated its audit integrity and quality programme under a comprehensive framework known as the “amfori Audit Assurance Programme”.

Why audit integrity assurance matters ?

Integrity assurance ensures that the audit process remains transparent, unbiased, and robust. At amfori, we believe that enhancing the credibility and reliability of the amfori audit process ensures that audit integrity is maintained and continuously improved.

With global supply chains often spanning regions with varying regulatory landscapes and ethical standards, a strong integrity assurance framework is a critical tool in identifying, mitigating, and addressing ESG risks.

By ensuring the high integrity of our activities, we work on identifying practices that violate ethical principles, such as those subject to the Zero Tolerance Protocol of amfori (find out more about the Zero Tolerance Protocol - See Guide 5 of the amfori BSCI System Manual). At amfori, we recognise five practices that can activate the Zero Tolerance alter mechanism in case of serious violations identified by an auditor : 1) Child Labour, 2) Bounded and Forced Labour, 3) Inhuman and degrading Treatment, 4) Imminent or critical threat to workers’ health or lives and 5) Unethical Behaviour. Without stringent assurance mechanisms, such risks could remain hidden, jeopardizing both the ethical standing and financial stability of businesses.

Key benefits in ESG due diligence

  • Enhanced Responsibility: By embedding integrity into audits, amfori supports its members to demonstrate commitment to transparency, but also for meeting ESG standards, promoting a culture of responsibility across the supply chain.

  •  Improved Risk Mitigation: Integrity-driven audits identify and address ESG risks early, protecting companies from reputational damage.

  •  Stakeholder Trust: Transparent processes reassure stakeholders that ESG commitments are more than just rhetoric, they are a demonstrated priority.

  •  Regulatory Compliance: As governments worldwide tighten ESG regulations, integrity assurance reduces potential legal exposure.

While audits play a crucial role in amfori members' due diligence efforts, they provide only a snapshot at a given point in time. They are one solution in the amfori toolbox and thus, need to be combined with other ESG due diligence solutions. Audits alone cannot guarantee sustainable trade, as this ultimately relies on the proactive engagement of all stakeholders in the supply chain.

Ensuring audit integrity

amfori supports its members by investing in rigorous auditing practices through a strong network of auditing companies around the globe. These auditing partners are selected based on their expertise and commitment to ethical standards and their work is monitored through the comprehensive framework, the “amfori Audit Assurance Programme” (AAP). This AAP is divided into two key components: quality and integrity. The audit quality programme is based on technical adherence to our quality standards. These include strict acceptance criteria for monitoring partners and auditors, as well as various on-site and offsite activities and in-depth quality investigations. On the other hand, integrity aims to ensure ethical behaviour amongst all stakeholders by proactively safeguarding audit integrity through a project-based approach. We have a dedicated project starting mid-December 2024. It aims at enhancing audit integrity by identifying, addressing, and mitigating risks that could undermine the reliability and credibility of audit reports.  

With over 37 000 audits conducted annually, amfori also supports its members by giving them access to tools and solutions to leverage the potential of audits and exercise their ESG due diligence journey:

By prioritizing transparency and continuous improvement, companies not only meet regulatory requirements or maintain business relationships. They also build sustainable, resilient supply chains that reflect their core values. This proactive approach ensures long-term success in an increasingly ESG-conscious world.

If you have any questions, please contact us at info@amfori.org