Voluntary assurance on sustainability reporting in European companies prior to CSRD implementation

Purpose: The paper presents the practices of voluntary assurance on sustainability information disclosure in European companies before the implementation of the Corporate Sustainability Reporting Directive (CSRD). It attempts to determine the factors that influence decisions related to verifying ind...

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Main Authors: Małgorzata Macuda, Paweł Zieniuk
Format: Article
Language:English
Published: Rada Naukowa SKwP 2024-12-01
Series:Zeszyty Teoretyczne Rachunkowości
Subjects:
Online Access:http://ztr.skwp.pl/gicid/01.3001.0054.8689
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author Małgorzata Macuda
Paweł Zieniuk
author_facet Małgorzata Macuda
Paweł Zieniuk
author_sort Małgorzata Macuda
collection DOAJ
description Purpose: The paper presents the practices of voluntary assurance on sustainability information disclosure in European companies before the implementation of the Corporate Sustainability Reporting Directive (CSRD). It attempts to determine the factors that influence decisions related to verifying independent reports. Methodology/approach: The research sample comprises 576 European companies whose sustainability reports, prepared according to the GRI guidelines, were available from the GRI Sustainability Disclosure Database. Logit regression was used to determine factors that influence companies' decisions on voluntary assurance. Findings: There is a statistically significant positive relationship between a company's decision to pursue voluntary assurance on sustainability reporting and (1) company-specific characteristics, (2) previous experience with sustainability reporting, (3) selected sustainability reporting practices (e.g., reporting on Sustainable Development Goals) and (4) country-specific factors (e.g., the strength of auditing standards in the company's operating environment). Research limitations/implications: In light of CSRD requirements, which introduced mandatory limited assurance from 2024, transitioning to reasonable assurance over time, the study provides valuable insights into the extent to which companies use assurance services. These findings may be useful for practitioners and standards setters. Originality/value: The paper adds to the understanding of the choices made by individual companies regarding the assurance of sustainability information disclosure. The study considers different influencing factors and examines a time horizon that precedes the implementation of mandatory assurance.
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institution Kabale University
issn 1641-4381
2391-677X
language English
publishDate 2024-12-01
publisher Rada Naukowa SKwP
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series Zeszyty Teoretyczne Rachunkowości
spelling doaj-art-82083e93c47345f0afca994595abf3562025-01-04T19:09:27ZengRada Naukowa SKwPZeszyty Teoretyczne Rachunkowości1641-43812391-677X2024-12-01484537310.5604/01.3001.0054.868901.3001.0054.8689Voluntary assurance on sustainability reporting in European companies prior to CSRD implementationMałgorzata Macuda0Paweł Zieniuk1Uniwersytet Ekonomiczny w Poznaniu Wydział ZarządzaniaCracow University of Economics Faculty of Finance and LawPurpose: The paper presents the practices of voluntary assurance on sustainability information disclosure in European companies before the implementation of the Corporate Sustainability Reporting Directive (CSRD). It attempts to determine the factors that influence decisions related to verifying independent reports. Methodology/approach: The research sample comprises 576 European companies whose sustainability reports, prepared according to the GRI guidelines, were available from the GRI Sustainability Disclosure Database. Logit regression was used to determine factors that influence companies' decisions on voluntary assurance. Findings: There is a statistically significant positive relationship between a company's decision to pursue voluntary assurance on sustainability reporting and (1) company-specific characteristics, (2) previous experience with sustainability reporting, (3) selected sustainability reporting practices (e.g., reporting on Sustainable Development Goals) and (4) country-specific factors (e.g., the strength of auditing standards in the company's operating environment). Research limitations/implications: In light of CSRD requirements, which introduced mandatory limited assurance from 2024, transitioning to reasonable assurance over time, the study provides valuable insights into the extent to which companies use assurance services. These findings may be useful for practitioners and standards setters. Originality/value: The paper adds to the understanding of the choices made by individual companies regarding the assurance of sustainability information disclosure. The study considers different influencing factors and examines a time horizon that precedes the implementation of mandatory assurance.http://ztr.skwp.pl/gicid/01.3001.0054.8689voluntary assurancemandatory assuranceCSRD Directivesustainability reportingESG reporting
spellingShingle Małgorzata Macuda
Paweł Zieniuk
Voluntary assurance on sustainability reporting in European companies prior to CSRD implementation
Zeszyty Teoretyczne Rachunkowości
voluntary assurance
mandatory assurance
CSRD Directive
sustainability reporting
ESG reporting
title Voluntary assurance on sustainability reporting in European companies prior to CSRD implementation
title_full Voluntary assurance on sustainability reporting in European companies prior to CSRD implementation
title_fullStr Voluntary assurance on sustainability reporting in European companies prior to CSRD implementation
title_full_unstemmed Voluntary assurance on sustainability reporting in European companies prior to CSRD implementation
title_short Voluntary assurance on sustainability reporting in European companies prior to CSRD implementation
title_sort voluntary assurance on sustainability reporting in european companies prior to csrd implementation
topic voluntary assurance
mandatory assurance
CSRD Directive
sustainability reporting
ESG reporting
url http://ztr.skwp.pl/gicid/01.3001.0054.8689
work_keys_str_mv AT małgorzatamacuda voluntaryassuranceonsustainabilityreportingineuropeancompaniespriortocsrdimplementation
AT pawełzieniuk voluntaryassuranceonsustainabilityreportingineuropeancompaniespriortocsrdimplementation