ESG Fraud Prevention Systems
Your expert for questions
Gunter Lescher
Partner, Forensic Services at PwC Germany
Tel: +49 151 12198599
Email
Preventing ESG Fraud and ensuring Compliance
When it comes to compliance, constantly increasing regulatory-related sustainability requirements more and more put the focus on ESG issues. To systematically prevent fraudulent activities and ensure effective and efficient fraud prevention, companies have to integrate ESG criteria into their compliance management system (CMS) and establish ESG fraud prevention systems. Regarding sustainable fraud management in your company, we support you with everything from strategy through execution, so as to provide successful protection against ESG fraud.
ESG Fraud prevention in your CMS
For the development and further development of ESG fraud prevention systems, we rely on a proven approach that lays the foundation for successfully implementing suitable security and control measures with a targeted analysis.
Phase 1: Analysing the status quo, identifying gaps, and deriving recommendations for action
In the analysis phase, the first step is to assess the status quo. Does the company comply with all regulatory and internal requirements? Are there any particularly risky process steps? Based on a jointly developed target picture, we evaluate all relevant ESG risks as well as existing control mechanisms and safeguards. Based on the identified gaps between status quo and target picture we then provide recommendations for action for the targeted optimisation of an effective ESG fraud prevention system. All results are based on an independent assessment and are comprehensibly documented. We ensure that all relevant requirements are covered.
Phase 2: Effective implementation of recommendations for action
In addition to the independent assessment of all relevant ESG criteria and safeguards, we also support companies in designing the recommended measures during the implementation phase. In doing so, we rely on a proven risk-based approach for effective implementation of the recommendations for action, which also involves and considers all relevant stakeholders.
How we support you with ESG fraud prevention systems
- Compliance consulting
- Identification of gaps
- Analysis of compliance
- Risk analysis
Compliance consulting
Have sufficient controls been implemented in your company to detect cases of ESG fraud at an early stage? When it comes to your processes and control mechanisms, are the risks associated with ESG fraud regularly monitored and assessed? We help you with our expertise to further develop your compliance management system and to implement an ESG Fraud prevention system.
Identification of gaps
To identify possible cases of ESG fraud at an early stage and to take targeted action against them, comprehensive and current knowledge of the respective regulatory requirements is indispensable. We support you in identifying gaps, thereby taking preventive action against ESG fraud.
Analysis of compliance
The compliance requirements for corporate processes concerning the topics of environment, social affairs and governance result from regulatory requirements on the one hand and internal rules on the other. As independent advisors, we assess your company's compliance with the respective requirements for both strands.
Risk analysis
In the area of ESG, are your control and escalation mechanisms regularly reviewed and, where necessary, improved? Within the framework of an ESG Risk Assessment, we do more than just evaluate the ESG risks. We also take a close look into the existing control mechanisms and the safeguarding measures.
"As forensic experts, we know the gateways for ESG fraud and support our clients with our extensive regulatory experience in the effective prevention of potential ESG fraud risks."
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