Non-financial reporting trends in the EU – the rise of the CSRD and mandatory reporting assurance

Abstract

Abstract. Examining a company's sustainability-related ambitions provides a deeper understanding of its long- term interaction with the environment and society. This understanding complements traditional financial analysis and reveals more about corporate performance in our increasingly uncertain world [1, p 1.]. The importance of evaluating companies based on their sustainability performance through environmental, social, and governance (ESG) reporting and assurance is growing. Consequently, numerous studies have been conducted in finance, accounting, business, and management. My comprehensive literature review encompasses the latest advancements in this field and includes regulatory changes, targeting a broader audience of academic researchers and practitioners. The 2014/95/EU Non-Financial Reporting Directive (NFRD) has significantly enhanced transparency and comparability in non-financial reporting within Europe. Companies falling under the directive's scope are required to disclose their social, environmental, and employee-related policies, risks, and outcomes, as well as their approach to human rights, anti-corruption, bribery, and board diversity [2, p 1.].