For U.S. firms, CSRD compliance includes SSAEs and international standards like ISSA 5000.
Key takeaways
Strong documentation and controls are vital for CSRD compliance and assurance.
CSRD regulations are evolving, with possible scope reductions and deadline extensions.
CSRD assurance: What you need to know
The Corporate Sustainability Reporting Directive (CSRD) establishes rigorous new standards for environmental, social and governance (ESG) disclosures, with far-reaching implications for organizations operating in or with the European Union.
Our white paper, “CSRD compliance through CSRD assurance: What you need to know,” provides authoritative guidance to help business leaders and compliance professionals better understand CSRD compliance and assurance.
In this white paper, you will find:
Gain clarity on which entities are subject to the directive, including recent updates to EU legislation and implementation timelines.
Understand the distinctions between U.S. and international frameworks (SSAEs, ISAE 3000/3410 and ISSA 5000), and their practical implications for assurance engagements.
Explore best practices for documenting methodologies, establishing robust processes and controls, and avoiding common compliance pitfalls.
Prepare your organization to meet CSRD requirements with confidence, transparency and accountability.
This resource is designed for executives, finance leaders and sustainability professionals seeking to navigate the complexities of CSRD compliance and assurance and position their organizations for success in an evolving regulatory environment.
Frequently asked questions about CSRD compliance and assurance
The CSRD is a European Union regulation that sets standards for sustainability reporting. It requires companies operating in or with the EU to disclose ESG data in a consistent and verifiable format. CSRD compliance is designed to support transparency and accountability in sustainability efforts.
To comply with CSRD, companies must disclose ESG data in a consistent, verifiable format. Key steps include determining applicability, selecting appropriate reporting frameworks, documenting methodologies, implementing internal controls and engaging qualified assurance providers. These actions support transparency, audit readiness and alignment with EU sustainability standards.
Entities must comply with CSRD if they meet at least two of the following criteria: annual revenue greater than 50 million euros, total assets exceeding 25 million euros, or more than 250 employees. Non-EU companies may also fall under CSRD compliance if they are listed on EU-regulated markets or generate significant revenue within the EU.
CSRD assurance refers to the independent verification of sustainability disclosures required under the directive. It helps validate the accuracy and completeness of ESG data. Assurance engagements may follow U.S. standards like SSAEs or international frameworks such as ISAE 3000/3410 or the new ISSA 5000 standard.
Common pitfalls include inadequate documentation of methodologies, unclear estimation processes and weak internal controls. Organizations can support CSRD compliance by establishing robust systems and processes to meet CSRD assurance standards.
To prepare for CSRD assurance, companies should:
- Identify applicable reporting frameworks (e.g., ESRS, GRI, IFRS SDS)
- Document methodologies and estimation assumptions
- Implement strong internal controls
- Choose the appropriate level of assurance (reasonable or limited)
- Engage qualified assurance providers familiar with SSAEs and ISAEs
RSM contributors
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Scott WilgenbuschPartner
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