The introduction of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) has met with resistance. The EU is still debating the full implementation of CSRD and ESRS. One of the concerns relates to the competitive position of European companies operating globally.
Another concern is that full implementation may prove unfeasible. In addition, the provision and implementation of ESG assurance is not yet a foregone conclusion. Different standards exist, levels of assurance vary and there are multiple methodological challenges. Furthermore, there are questions about the role that accountants and other assurance providers can and should play.
This booklet contains summaries of five recent research articles that discuss the possibilities and obstacles of ESG assurance. How can artificial intelligence make the assurance process more efficient? Does “diversity washing” lead to unjustifiably higher ESG ratings and investments? Can assurance help prevent greenwashing? What is the impact of assurance on the quality of sustainability reports? And what effect does it have on the future emission performance of companies? The answers to these questions are summarised in this booklet.
Accountants, regulators and companies that want to strengthen their ESG reporting can use the research results to take assurance to a higher level.
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