Unified Metrics Library - Governance external audit
Helper question
Summary
Unit
Description
The external auditing process for corporate governance is a specific mechanism to verify that the disclosing party have adequate policies, procedures and systems in practice. These disclosures should be verified by an external auditor that is independent and impartial from the disclosing party. Limited assurance is a type of assurance that provides a lower level of confidence than reasonable assurance but still enhances the credibility and reliability of the information disclosed.
Regulatory definition
According to the (EU) 2022/1288 of 6 April 2022, Article 15; "A description of the investments underlying the financial products that are in environmentally sustainable economic activities, including whether the compliance of those investments with the requirements laid down in Article 3 of Regulation (EU) 2020/852 will be subject to an assurance provided by one or more auditors or a review by one or more third parties and, if so, the name or the names of the auditor or third party"
Sources
Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020 supplementing regulation (EU) 2019/2088 of the European Parliament and of the Council on sustainability disclosures in the financial services sector. (References to paragraphs 10, 11 and 12)
This Regulation supplements the disclosure requirements laid down in Directives 2009/65/EC, 2009/138/EC , 2011/61/EU , 2014/65/EU , (EU) 2016/97 , (EU) 2016/2341 , and Regulations (EU) No 345/2013 , (EU) No 346/2013 , (EU) 2015/760 and (EU) 2019/1238
Examples
The integration of sustainability risks in the disclosing party's investment decision-making process, the adverse sustainability impacts of their investment decisions, and the principal adverse sustainability impacts of their investment decisions.