ESG guidance notes for Federal institutions

Integrating ESG into internal audit in the UAE

All federal entities under the oversight of the UAE Accountability Authority (UAEAA) are required to adhere to UAE Resolution No. 159 of 2024, which sets out higher expectations for internal audit (IA) functions. These include mandatory alignment with international internal audit standards published by the Institute of Internal Auditors (IIA), specifically, the Global Internal Audit Standards (GIAS).

Download the guidance

A key component of this resolution is the explicit consideration of Environmental, Social, and Governance (ESG) factors within audit planning and execution. This reflects the UAE’s broader commitment to sustainable development, transparency, and accountability, and positions ESG as a strategic and operational risk domain.

Under the GIAS 2024, internal audit functions are authorised to provide advisory services, defined as:

Advisory services are activities, the nature and scope of which are agreed with the client, that are intended to add value and improve an organisation’s governance, risk management and control processes without the internal auditor assuming management responsibility.
(GIAS Glossary & Principle 9: Advisory Services)

Download the guidance

In alignment with both UAE Resolution No. 159 and GIAS, internal audit functions in federal entities may fulfill their responsibilities regarding ESG in two complementary ways:

Assurance role

By conducting formal internal audits of ESG programmes, evaluating:

ESG governance structures and accountability
Accuracy of sustainability reporting and disclosures
Data integrity and compliance with national frameworks
ESG-related risk mitigation and controls

Advisory role

By supporting:

ESG gap or maturity assessments based on frameworks such as GRI, SASB, and the UAE Net Zero Strategy
Design and mapping of sustainability-related controls and reporting processes
Integration of ESG risks into enterprise risk management (ERM) systems
By leveraging their unique position and mandate, internal auditors can support sustainable transformation — not only identifying ESG control weaknesses but also advising management on practical, risk-based improvements in line with national priorities and global frameworks

This dual role ensures ESG considerations are not siloed but rather embedded into the organisation’s governance and control environment — a core objective of Resolution No. 159.