Listed companies must submit their first sustainability report in accordance with the CSRD criteria by December 31, 2024. From 2025, this obligation will then apply to all large corporations. This applies to both individual companies and groups (including subgroups).
Companies should therefore start implementing ESG reporting quickly now.
Our recommendation: Involve KPMG as your auditor at an early stage and gain certainty for your audit opinion on the sustainability report. With our integrated audit of financial and sustainability data, we create synergies and provide you with comprehensive support for current and future regulatory requirements. The advantage: We know your company, your processes and risks and can apply this expertise to the ESG environment.
The obligation to prepare a sustainability report in accordance with CSRD criteria is new and certainly causes uncertainty for some companies. However, our experience with numerous customers who already have to submit their report by the end of 2024 shows that this is the case: Accompanied by experienced auditors with detailed knowledge of the company, the entire process is easier to manage.
Haiko Schmidt
Partner, Audit
KPMG AG Wirtschaftsprüfungsgesellschaft
Oliver Geier
Partner, Audit, Audit Corporate
KPMG AG Wirtschaftsprüfungsgesellschaft
Three phases to success
Phase 1
The status and gap assessment includes a review of scoping, materiality analysis, processes and controls and the integration of ESG into the management report. This provides important early indications as to whether there are gaps between the ESRS reporting requirements and the currently available sustainability information and whether sufficient audit evidence would be available.
Phase 2
Based on the findings of phase 1, you can introduce suitable measures and close the gaps in the CSRD requirements. KPMG will provide you with further audit support.
Phase 3
Review of the draft ESG report as part of a dry run.
Advantages of involving the auditor in the preparation of ESG reporting
The comprehensive transformation of ESG reporting through CSRD requires certainty on the way to initial application. By involving KPMG at an early stage, you get:
a constructive, independent assessment of your analyses, preparations and decisions,
early support with decisions such as materiality analyses for effective resource allocation when creating new reporting processes,
an available, highly motivated team of sought-after and experienced experts,
a clearly coordinated roadmap, including in communication with committees on the way to the first CSRD reporting,
an efficient, proven and integrated audit methodology and implementation,
reliable decisions to avoid surprises late in the CSRD reporting and review process in the first year.
