What happened
The European Commission has invited comments on draft standards for limited assurance of sustainability disclosures required under the Corporate Sustainability Reporting Directive (CSRD). The aim is to establish a shared approach for assurance work across the EU sustainability-reporting system.
The draft was prepared with technical input from the Committee of European Auditing Oversight Bodies. It draws on the International Standard on Sustainability Assurance 5000, issued in 2024 by the International Auditing and Assurance Standards Board, but adjusts that framework for EU rules.
According to ESG Today, the proposed requirements include work on whether activities qualify for, and align with, the EU Taxonomy. They also address digital reporting and the use of verification reports produced by third parties.
Why it matters
Businesses reporting under the CSRD must have their sustainability information reviewed by an independent external provider. The consultation therefore matters to reporting companies, auditors and other assurance providers, as it could define the procedures used to support those engagements.
The Commission is seeking views on the scope of assurance assignments, the treatment of the European Sustainability Reporting Standards and EU Taxonomy as assurance criteria, and the date at which the new standards should become compulsory. Investors, standard-setters, oversight bodies and civil-society organisations are also invited to respond.
Background
The CSRD currently uses limited assurance for sustainability information. Under the EU’s Omnibus I simplification initiative, the potential later move to the stricter reasonable-assurance requirement was removed.
What's next
The consultation is open until 18 January 2027. The Commission is testing possible mandatory start dates of 2027, 2028 or a later point.
