The European Commission has launched a targeted consultation to gather feedback on draft standards for limited assurance of sustainability reporting. The initiative aims to support reliable sustainability disclosures and facilitate private investment in sustainable activities across the European Union.
Assurance requirements under the CSRD framework
Under EU regulations, large entities meeting specified size criteria must disclose their sustainability performance in alignment with the Corporate Sustainability Reporting Directive (CSRD). Independent external review is required to verify the credibility of these reported disclosures.
Through the Omnibus I simplification package, the Commission confirmed that participating companies will only be required to obtain limited assurance for sustainability reporting. The package also removed the option of introducing a future requirement for reasonable assurance, maintaining a proportionate approach while preserving independent oversight.
Consultation scope and submission deadline
The Commission prepared the draft limited assurance standards based on technical advice from the Committee of European Auditing Oversight Bodies (CEAOB), while incorporating existing international standards and the EU legal framework.
The consultation invites views on the CEAOB technical recommendations, proposed modifications to the international standard, and practical application within the EU context. Stakeholders, including companies preparing disclosures, auditors, assurance providers, investors, oversight bodies, standard-setters, and civil society organisations, can submit feedback until 18 January 2027.
Frequently Asked Questions
What is the deadline to respond to the EU consultation on limited assurance?
Stakeholders can submit responses to the consultation on draft limited assurance standards until 18 January 2027.
Are companies required to obtain reasonable assurance under CSRD?
No. The Omnibus I simplification package confirmed that companies are only required to obtain limited assurance and removed the option to introduce a reasonable assurance mandate in the future.
