Audit of the sustainability reports

As stakeholder expectations of sustainability reporting increase, so too does the demand for the credibility of the information provided. The CSRD (Corporate Sustainability Reporting Directive) introduces a statutory audit requirement for sustainability reports. The audit strengthens the credibility of the reported information and supports the continuous improvement project at the reported companies and their often still young sustainability reporting processes.

The aim of the audit of sustainability reports is to ensure that reporting on social, economic and environmental aspects complies with regulatory requirements and is reported completely and correctly in accordance with these requirements. The audit is carried out against the relevant sustainability standards, such as the CSRD, ESRS and EU Taxonomy. The audit in accordance with national and international auditing standards can be performed with limited and reasonable assurance.

In principle, the same requirements apply to the audit of sustainability information as to the audit of financial information. Therefore, the same documentation and internal control requirements apply to the preparers.

GENERAL INFORMATION ON THE DOCUMENTATION

Proper and comprehensive documentation of all definitions, decisions, processes, responsibilities, controls and objectives is essential for the verifiability of the sustainability report. Thorough documentation also facilitates internal processes and the consolidation of data.

THEREFORE, ALWAYS TRY TO DOCUMENT EVERYTHING AS THOROUGHLY AS POSSIBLE, E.G. BY MAKING A WRITTEN NOTE OF

Who did something and was involved?
What exactly was done?
What processes were involved?
When was it done?
Is there a control?

IF POSSIBLE, TRY TO DOCUMENT EVERYTHING THAT LEAVES ROOM FOR INTERPRETATION OR IS NOT IMMEDIATELY OBVIOUS, E.G:

Decisions
Process & process flows
Responsibilities
Controls
Definitions & interpretations

In our opinion, the audit of sustainability reporting can best be carried out in close coordination and linkage with the audit of the financial reporting. As auditors, we have deep insight and a high level of understanding of the business model, the business processes and the key value drivers. We use this knowledge to audit sustainability reporting in as integrated a manner as possible and with hybrid teams of financial and sustainability auditors. In this way, we achieve a high level of assurance and offer our clients added value in the further development of internal processes and data quality.

Contact

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Christian Maier

Partner

+49 711 7819 147 73

Send inquiry

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Anna Wilhelm

Associate Partner

+49 89 928780 216