CEAOB releases non-binding guidance on limited assurance on sustainability reporting

On 30 September 2024, the Committee of European Auditing Oversight Bodies (CEAOB) released the final guidance on limited assurance on sustainability reporting under the CSRD. The CEAOB previously consulted a draft of these non-binding guidelines from 21 June 2024 to 22 July 2024.

Background: The CEAOB is thus responding to the European Commission’s request to draw up overarching and risk-based guidelines which, in the absence of existing international standards, can initially be used by those responsible for the assurance of sustainability reports throughout the EU (link to DG FISMA’s letter). The aim of these of these non-binding guidelines is to create a common understanding of the key points for the limited assurance of sustainability information.

The International Auditing and Assurance Standards Board (IAASB) approved the International Standard on Sustainability Assurance 5000 (ISSA 5000) on 20 September 2024. The standard text is currently being finalised, with the final text expected to be announced before the end of the month and the final standard officially published by the end of the year. The ISSA 5000 is intended to serve as an internationally applicable standard for the assurance of sustainability information with limited or reasonable assurance. It is a principles-based standard that can be used independently of the frameworks or standards used for sustainability reporting and by different assurance providers. European associations for auditors assume that the ISSA 5000 will be adopted by the European Commission as an assurance standard for sustainability reporting in accordance with the CSRD by means of a delegated act. The CSRD requires the adoption of an assurance standard for obtaining limited assurance of sustainability reporting by 1 October 2026 at the latest. In addition, the European Commission shall assess whether an assurance standard for obtaining reasonable assurance should also be developed (Article 26a of the Statutory Audit Directive, Directive 2006/43/EC).