Companies Act 2014 section 1616

Audit committees for public-interest entities – responsibilities in relation to assurance of sustainability reporting

Section 1616 sets out the additional responsibilities that an audit committee of a public-interest entity must fulfil in relation to the assurance of sustainability reporting.

• The audit committee must inform the directors of the outcome of the sustainability reporting assurance engagement and explain how it contributed to the integrity of the sustainability reporting
• The committee must monitor the entire sustainability reporting process, including electronic reporting and the identification of reportable information under sustainability reporting standards, and make recommendations to the directors
• The committee must oversee the effectiveness of internal quality control, risk management and, where applicable, internal audit systems as they relate to sustainability reporting, without compromising its own independence
• The committee must monitor entity and group sustainability reporting assurance performance and review and monitor the independence of the auditors or audit firms carrying out that assurance work