The Anatomy of an Auditable ESG Stack

Most ESG programs are built to tell a story. Auditors aren’t listening for stories—they’re looking for evidence. In this episode, we dismantle the most common misconception in sustainability reporting: that ESG is a report. It isn’t. ESG, if it’s going to survive assurance, regulation, and investor scrutiny, must behave like a system of record. This is a deep dive into what “audit-grade ESG” actually means in system terms—and how to build it on Microsoft Cloud without relying on dashboards, spreadsheets, or tribal knowledge. What You’ll Learn

• Why ESG reporting fails audit pressure
  • The difference between narrative ESG and operational ESG (oESG)
  • Why dashboards and spreadsheets are the fastest path to audit failure
  • Deterministic vs. probabilistic ESG—and why auditors only accept one
• The four non-negotiable audit requirements
  • Immutability (WORM storage, not promises)
  • Reproducibility (rerun FY-1 in FY+2 and get the same result)
  • End-to-end lineage (origin → transformation → report)
  • Separation of duties enforced by identity, not policy slides
• The Microsoft architecture that actually survives assurance
  • Entra ID as the enforcement layer for governance
  • ADLS Gen2 with immutability for evidence, not convenience
  • Fabric Lakehouse or Synapse as a governed calculation engine
  • Microsoft Purview as the only scalable answer to “prove it”
  • Power BI as presentation—not accounting
• Why dashboards are an audit liability
  • How DAX-based logic silently rewrites history
  • Why calculations must live outside the reporting layer
  • How to design Power BI for assurance vs. management use
• The hidden failure modes that collapse ESG stacks
  • Manual CSV overrides (final_v7.csv)
  • Calculation drift in semantic models
  • Emission factors without versioning
  • “Hero admin” access and collapsed role separation
• A replicable, minimal viable auditable ESG blueprint
  • Raw / Curated / Reported storage anatomy
  • Controlled ingestion with append-only evidence
  • Versioned factor libraries and period-bound logic
  • Period close that actually locks history
  • Evidence packs you can produce without rebuilding memory

Key Takeaway If your ESG number exists because someone edited a spreadsheet or tweaked a dashboard, your stack isn’t a stack—it’s a story. Auditable ESG is not about better visuals.
It’s about immutable data, versioned calculations, enforced identity, and lineage that holds up when the questions stop being polite.

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If this clashes with how you’ve seen it play out, I’m always curious. I use LinkedIn for the back-and-forth.