CSRD & ESG Assurance

Is your ESG data audit-ready? With CSRD’s mandatory assurance requirements, businesses must prepare for sustainability audits just as they do for financial audits. Start strengthening your ESG reporting processes today!

Key Points to Include in the Flyer:

1. Why ESG Assurance Matters for CSRD Compliance

• Mandatory External Verification: Companies must obtain limited assurance from an accredited auditor, similar to financial audits.
• Trust & Transparency: Assured ESG reports enhance credibility with investors, regulators, and stakeholders.
• Risk Mitigation: Strong assurance frameworks reduce the risk of greenwashing claims and regulatory penalties.

2. What ESG Assurance Covers

• Data Accuracy: Ensuring reported ESG metrics are complete, consistent, and reliable.
• Regulatory Compliance: Verifying adherence to ESRS, EU Taxonomy, and other reporting frameworks.
• Governance & Internal Controls: Evaluating ESG reporting processes, data collection methods, and audit trails.
• Materiality Assessment: Confirming that reported ESG factors align with the company’s financial and operational risks.

3. How to Prepare for ESG Assurance

• Conduct an ESG Data Audit: Identify gaps, inconsistencies, and weaknesses in sustainability data.
• Implement Strong Internal Controls: Establish clear policies, roles, and responsibilities for ESG reporting.
• Standardize Reporting Frameworks: Align with ESRS, GRI, and IFRS Sustainability Standards to streamline audits.
• Engage with External Auditors Early: Build relationships with assurance providers to understand expectations.
• Leverage Technology for Data Accuracy: Use ESG reporting platforms and automated data validation tools.

Coming Next Week: CSRD & Double Materiality – Identifying the ESG Issues That Matter Most: CSRD requires companies to assess sustainability from two perspectives: financial materiality and impact materiality. Next week, we’ll dive into how businesses can conduct a double materiality assessment to focus on the ESG factors that truly matter.