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Joep Van Amelsfort (Caseware): Getting to grips with CSRD compliance
To ensure compliance with the EU’s new Corporate Sustainability Reporting Directive, companies need to take proactive steps – starting with understanding the legislation, says Joep vVan Amelsfort, CEO of post-accounting and audit software provider Caseware’s business in Belgium and Luxembourg.
About Caseware:
Caseware is the leading provider of audit and financial reporting software for audit firms outside the Big Four as well as accountants that produce Lux GAAP financial statements, both for big corporate groups such as ExxonMobil and CBRE as well as service providers including Blackstone’s Revantage, CSC (Intertrust) and Apex Group. Caseware enables service providers to manage hundreds or thousands of clients with the Lux FinTax monitor, which delivers an all-embracing overview of the status of all engagements. We offer managers of departments that produces financial statements the reassurance of always being able to provide clients with the most up-to-date information.
Is the EU’s Corporate Sustainability Reporting Directive an evolution of the Non-Financial Reporting Directive?
The replacement of the Non-Financial Reporting Directive by the Corporate Sustainability Reporting Directive reflects the evolving landscape of corporate sustainability and transparency. First, the legislation has been significantly expanded in scope. Whereas the NFRD applied to large public companies with more than 500 employees, once fully implemented the CSRD will be extended to all large businesses and other companies listed on regulated EU markets. As it is phased in, it will start applying also to small and medium-sized businesses. Then there is the audit requirement. The NFRD did not mandate an independent audit of non-financial information, but the CSRD does require an independent external review of a company's sustainability report, initially according to limited external assurance procedures, with the possibility of moving to reasonable assurance, which entails a more detailed examination of the sustainability report over time from 2028. The CSRD encourages the use of digital reporting formats, in this case XBRL (eXtensible Business Reporting Language), to enhance accessibility and transparency through the European Single Access Point.
How can companies ensure they remain compliant with the CSRD?
To ensure compliance with the CSRD, companies need to take various proactive steps. The first thing is that they must fully understand the legislation – obtain a thorough grasp of the CSRD’s scope and requirements. This includes knowing which entities are affected, what information needs to be reported, and the timelines for implementation, which involves close study of the directive and its standards. To obtain detailed guidance on the specific disclosures required, companies should seek assistance. They will also need assurance services later on because of the CSRD audit requirement, so they should engage independent auditors or assurance providers to review their sustainability data and disclosures
"To ensure compliance with the CSRD, companies need to take various proactive steps. The first thing is that they must fully understand the legislation – obtain a thorough grasp of the CSRD’s scope and requirements."
How important is the audit at the end of the process?
The CSRD requires limited assurance to start with. All the audit phases should be well documented so that the auditor can follow the process and understand why some topics are reported and others not, based on an evaluation of impacts, risks, and opportunities. Under the Caseware approach, we conduct a materiality assessment for this, since companies should only aim to report material or significant aspects