The audit of sustainability reports: Implications for audited companies
SustainAbility School #68
Companies with an average annual number of over 500 employees are currently required to prepare a non-financial statement according to EU Directive 95/2014, transposed locally through OMFP 1802/2014 and OMF 2844/2016, with subsequent amendments and additions. The non-financial statement is part of the set of financial statements that entities must prepare, without the obligation to audit it.
With the entry into force of the Corporate Sustainability Reporting Directive 2022/2464 (“CSRD”), the eligibility criteria for entities, the information that must be included in the sustainability report, and the audit requirements are radically changed.
The common point between the current requirements and the reporting requirements under CSRD remains the EU Taxonomy (Regulation 852/2020), which, with the entry into force of CSRD, becomes auditable.
With the entry into force of the Corporate Sustainability Reporting Directive 2022/2464 (“CSRD”), the eligibility criteria for entities, the information that must be included in the sustainability report, and the audit requirements are radically changed.
The common point between the current requirements and the reporting requirements under CSRD remains the EU Taxonomy (Regulation 852/2020), which, with the entry into force of CSRD, becomes auditable.
By attending this webinar, you will learn about:
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Understanding Sustainability Reporting: Sustainability reporting assesses the Environmental (E), Social (S), and Governance (G) aspects of a company’s impact, ensuring transparency and accountability;
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Key Frameworks and Standards: Common standards include the Sustainability Accounting Standards Board (SASB), Taskforce on Climate-Related Financial Disclosures (TCFD), Global Reporting Initiative (GRI), and the new European Sustainability Reporting Standards (ESRS);
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European Directives: The Corporate Sustainability Reporting Directive (CSRD) and the Non-Financial Reporting Directive (NFRD) mandate sustainability reporting for large EU companies. Over time, more companies will be required to follow these guidelines, starting with limited assurance moving to reasonable assurance within six years;
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Audit Process for ESG Reporting: Audits follow International Standards on Assurance Engagements (ISAE) like ISAE 3000, and check data reliability, transparency, and compliance with reporting standards. The audit process includes materiality assessment, risk analysis, and testing procedures;
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Double Materiality Principle: Companies must consider both financial materiality (impacts on financial performance) and impact materiality (their effect on society and the environment) to meet CSRD requirements;
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Implementation in Audited Companies: Companies must create an interdepartmental team, establish data collection processes, set up internal controls, and conduct pre-audit assessments to ensure reporting accuracy;
About the guest speakers
Florina Ion a Senior Manager in the Audit and Related Services Department at Deloitte Romania and has extensive experience in financial audit, sustainability report auditing, and other related services.
Mihnea Jurca is a Project Manager in the Audit and Related Services Department at Deloitte Romania, specializing in sustainability reporting and the EU Taxonomy, and is GRI (Global Reporting Initiative) certified.
Devino membru
SustainAbility School este un program de educare dedicat exclusiv angajaților din organizațiile membre ale Ambasadei Sustenabilității în România prin programul Coaliția România Sustenabilă.
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Dacă angajatorul tău nu s-a implicat încă, dar vrei să participi la edițiile viitoare și să ai acces la edițiile trecute, cere decidenților din organizația ta să devină membru.