Aug. 5, 2008 - A new study blows the lid off a relatively young but fast-growing multimillion dollar industry: assurance for corporate sustainability reports.

The study, by CorporateRegister.com, finds that while CSR reporting has become a basic business expectation, there is still little reliability because most aren't independently assured (verified).

In 2008, some 3,000 companies are expected to publish a CSR report. Of these, only around 750 will include a third-party assurance statement by one of hundreds of assurance providers on the market, the report finds.

Even among reports that have been assured by an independent third party, there remain two key barriers to clear communications, according to the report: a lack of a common approach to reporting and a lack of an agreed terminology in sustainability communications.

"In the absence of a common language there's confusion as to which of the many assurance approaches provides the most credibility and certainty," the study's authors note. "Some standards and guidelines are emerging, but are far from being accepted across the board."

The study identifies five elements to a meaningful assurance statement:

1. Reference to standardized approaches and levels of assurance (i.e. AA1000, ASISAE 3000, or the Global Reporting Initiative)
2. Specific declarations (audience, disclaimers, independence, responsibilities)
3. Methodology of work undertaken
4. Provider recommendations and opinions
5. Assurance conclusion

The report also identifies the three major types of assurance professionals at work in the marketplace, outlining key differences in their various approaches.

To download the full report, click here (PDF).