The CSRD (Corporate Sustainability Reporting Directive) Directive UE 2022/2464 establishes a European framework requiring large companies to report non-financial and sustainability information. The associated audit is essential for verifying organizational compliance and ensuring the transparency and credibility of published information.

Legal Requirements for Audit/Verification

The CSRD directive mandates non-financial reporting for:

• Companies with over 500 employees;

• Companies with over 500 employees, reports being issued in 2025 for the financial year 2024;

• Companies with over 250 employees, reports being issued in 2026 for the financial year 2025;

• Microenterprises, small and medium-sized enterprises (SMEs) listed on the stock exchange, reports being issued in 2027 for the financial year 2026.

• Public interest organizations, such as banks, insurance companies, and other entities listed on stock exchanges.

This reporting must include information on environmental impact, social aspects, and corporate governance (ESG). An external audit is required to validate the accuracy and quality of the reported data.

Industries Covered by the CSRD Directive

The directive applies to a wide range of sectors, including:

• Financial industry (banks, insurance companies);

• Energy sector;

• Manufacturing industry;

• Retail and commerce sector;

• Technology and IT companies.

Aspects Verified in an CSRD Audit

The CSRD compliance audit involves checking the following aspects:

1. Environmental impact:

   • Natural resource consumption;

   • Carbon footprint;

   • Climate change policies.

2. Social aspects:

   • Working conditions;

   • Equal opportunities;

   • Community engagement.

3. Corporate governance:

   • Leadership structures;

   • Anti-corruption mechanisms and transparency.

4. Compliance with legislative requirements:

   • Adherence to European and national regulations.

Advantages of Conducting the Audit for a Company

1. Legal compliance: Avoiding penalties and maintaining market reputation.

2. Transparency and credibility: Demonstrating commitment to sustainable and responsible practices.

3. Access to funding: Increasing attractiveness to investors through ESG alignment.

4. Enhanced competitiveness: Meeting the demands of clients and partners who prioritize sustainability.