• Non-Financial Assurance

Non-Financial Assurance

Investors, customers, regulators and other stakeholders are increasingly demanding comparable and reliable ESG reporting from companies. That’s why it’s important that publicly disclosed non-financial / ESG information is accurate, complete and consistent at any given moment in time. ​

Independent assurance provides comfort on the level of completeness and accuracy of the environmental, social and governance information, metric and indicators disclosed by a company in its non-financial / ESG reports. More so, in the coming years, it’s expected that the EU will mandate independent assurance and attestation of sustainability reports (as is the case for accounting and financial reporting).​

The ability of companies to report effectively on non-financial / ESG element depends on the design and effectiveness of internal control. As internal auditor, BDO has developed an internal audit work programme dedicated to sustainability and ESG initiatives within the company. These internal audits cover three stages: sustainability governance (incl. oversight, risks, policies, culture, etc.), sustainability processes (incl. Internal Control Framework, processes, tools and data) and sustainability monitoring (incl. complain management, investigation, reporting, record keeping, etc.).​

Prior to moving into an assurance process, BDO recommends performing a readiness assessment to identify areas of improvement before going public or before any external certification or independent audit.​

BDO also provides third party assurance in line with the internationally recognised assurance standards: the International Standards on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information.​

Limited assurance can be provided in addition to our traditional audit practises, complying with the the Corporate Sustainability Reporting Directive (CSRD) – an extension to the NFRD. With the CSRD comes also requirements for using a recognized framework and to verify the disclosed information through independent assurance.

Furthermore, BDO offers ESG Due Diligence service covering a wide range of performance risk, potential liabilities and compliance issues. Evaluating ESG risks and opportunities which may result in material adjustments to company valuations in an M&A context. Our ESG experts work side-by-side with financial and legal experts to integrate ESG parameters in the process.