Regulators across the world are seeking to prevent 'greenwashing', or exaggerated sustainability claims from companies to attract investors.
In an updated statement on ESG reporting, the watchdog said in 2023 it will focus on the use of ESG data and the link between investors and ESG reporting by companies. There will be targeted work including 'hot' or 'in-flight' reviews - internal checks at auditors as an audit progresses. The FRC said it will look at how and to what extent these reviews consider ESG matters.
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