LAUSR

Abstract A constantly increasing number of investors and stakeholders are seeking key sustainability related information. The necessity of third-party assurance of non-financial disclosure has been dwelt on in various literature. External assurance of sustainability reporting plays a key role in raising credibility, trust and engagement of the reporting organization’s stakeholders. Yet, limited research has been done on how the external assurance process can be used to strengthen internal reporting and management systems, thereby, enhancing Board and CEO reliance on material and trustworthy information. This paper examines the status quo of Health, Safety and Environment (HSE) data management at a multinational company, identifying challenges and opportunities in integrating sustainability measurement and management approaches. Questionnaires submitted in sites located in four continents and covering close to 90% of environmental impacts of the company, identified worst performing sites of HSE data management as those with cumulated environmental impact of over 66% of the total. In addition, 50% of sites implementing internal controls do not meet requirements of a reasonable assurance statement. Recommendations on urgent measures to be implemented and an HSE data Management Improvement Tree are provided as practical contributions to research on tools to enhance processes between company-internal actors and linkages among sustainability accounting, management control and internal communication and reporting methods.