Assurance can be used as a tool to provide stakeholders with confidence in the data being reported by companies, leading to more informed strategic decision making and greater competitiveness for investor funding. However, it can also bring challenges and contribute to the increasing workload for progressive businesses.
The CSRD requires the EU Commission to adopt limited assurance standards before October 2026. By October 2028, after reviewing what’s feasible, the Commission shall adopt reasonable assurance standards and specify when this is required. In the meantime, while the Commission has not adopted an assurance standard, member states may apply national assurance standards, procedures or requirements.
Effectively managing sustainability reporting assurance requires a clear, structured approach to ensure transparency, accuracy and accountability. While we wait for greater clarify and confirmation of regulatory requirements, here are our top tips for managing your sustainability assurance, for CSRD and beyond!
- Tracking, tracking, tracking
Effectively managing sustainability assurance requires a proactive approach, starting with the early preparation of internal systems and setting up clear audit processes. It’s important to set up regular tracking methods from the start, such as status reports and filing systems for meeting notes, emails and key decisions. Using centralised reporting platforms also ensures that all stakeholders have access to consistent and reliable information and everyone is on the same page throughout the project.
- Roles and responsibilities
Assigning clear roles and responsibilities for data and reporting management ensures accountability at each stage of the project. Engaging various departments early on is key to gather accurate information and foster buy-in from the beginning. Additionally, conducting a training session can help align teams and ensure everyone is equipped with the knowledge needed for the project and assurance process.
- Engage the right assurance provider, and engage them early
Finally, it’s important to engage with an assurance partner early on in the process, and make sure they are right for the job. Independent, reputable assurance partners with sector-specific experience will be best placed to assure your sustainability reporting. Invite your assurance partner to status calls, make sure they are provided with the necessary resources, and use their preferred working methods from the start. This will allow the assurance partner to quickly identify any potential gaps or areas of concern, providing ample time to resolve issues before the end of the project.
At Luminous, we regularly partner with assurance providers to deliver transparent and credible sustainability reporting. If you’d like to find out more about how Luminous can help with your sustainability reporting assurance or getting internal stakeholders on board, feel free to reach out at: Anokhi.Kalayil@Luminous.co.uk
[1] https://www.frc.org.uk/news-and-events/news/2024/10/frc-publishes-emerging-findings-from-sustainability-assurance-market-study/
