Auditing Challenges in Implementing Environmental, Social, and Governance (ESG) Policies

Abstract

The growing emphasis on Environmental, Social, and Governance (ESG) policies has heightened the demand for rigorous auditing to ensure transparency, accountability, and credibility in corporate sustainability practices. This study examines the key challenges auditors face in evaluating ESG performance, including fragmented reporting frameworks, limited auditor expertise in non-financial metrics, and the risk of greenwashing. Using a systematic literature review, the article synthesizes evidence from peer-reviewed studies to analyze how current auditing practices address, or fail to address, these challenges. The discussion integrates findings on regulatory developments, technological tools, and capacity-building initiatives that can strengthen ESG assurance processes. Results reveal that despite significant progress, the absence of global standardization and uneven access to auditing resources continue to undermine audit effectiveness. The study concludes that advancing ESG auditing will require harmonized standards, greater interdisciplinary expertise, and strategic technology adoption to enhance reliability and stakeholder trust in sustainability disclosures.