Wim Bartels joins JURI Committee’s hearing on sustainability reporting obligations

Wim Bartels, Chair of Accountancy Europe’s Sustainability Policy Group and member of EFRAG’s Sustainability Reporting Board, spoke on behalf of Accountancy Europe at the European Parliament (EP) Legal Affairs Committee hearing on sustainability reporting obligations on 13 May.

Wim shared early insights from the first implementation year of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS).

Intervention’s key takeaways

Wim noted that while the ESRS provide an essential framework, their complexity and granularity have posed challenges for preparers and auditors alike. Simplifications proposed by the European Commission (EC) were welcomed, particularly considering their relevance to assurance work.

The ESRS serve as a handbook for auditors to review the reported information against. They are therefore critical to further define and design assurance on the reporting. Assurance and reporting go hand in hand and simplifying the ESRS – as the EC has announced in its plan – also means simplifying assurance.

Accountancy Europe’s preliminary analysis of 52 CSRD-based reports revealed few qualified conclusions, mainly related to Scope 3 data, reliance on third-party sources, and EU Taxonomy issues. However, half of the reports included ‘emphasis of matter’ paragraphs, reflecting the need for ongoing improvements in sustainability data quality and transparency.

There is a need for a more harmonised EU approach to sustainability assurance. Wilm also welcomed the European Commission’s plans to issue targeted assurance guidelines, particularly for difficult areas such as double materiality assessments (DMA) and value chain data.

In the long-term, the EU should develop a dedicated EU assurance standard that would support consistency and high quality in assurance engagements – potentially building on the IAASB’s ISSA 5000. Such a standard can improve consistency, quality, and trust across markets.

Wim stressed the importance that all assurance providers – regardless of their professional background – operate under an equivalent framework. This includes a level playing field on professional assurance standards, on qualifications, equal ethical requirements including independence and with a quality framework and public oversight. These are critical to maintain trust and avoid greenwashing.

Accountancy Europe is ready to contribute to these efforts through experience sharing and support.