
Liliya Chernysh
The companies seeking long-term success are increasingly integrating environmental, social and governance (ESG) principles and global sustainable development goals (SDGs) into their strategies.
Audit of sustainability reporting from BDO in Ukraine is a powerful tool to improve transparency, international compliance and effectiveness of your ESG strategy. Our services help companies establish trust with investors, customers and society, and turn sustainability into a competitive advantage.
On 18 October 2024, the Cabinet of Ministers of Ukraine approved the Strategy for Introduction of Sustainable Development Reporting by Enterprises and the operational plan for its implementation in 2024-2026. The document aims to introduce the uniform reporting standards in line with European norms and provides for the introduction of reporting in accordance with the European standards (ESRS) and the audit of such reporting in Ukraine.
Why the audit of sustainability reporting is critically important?
1. Compliance with global and local requirements
Regulatory changes dynamics, in particular the CSRD (Corporate Sustainability Reporting Directive), require European companies to undergo mandatory sustainability reporting audits. This is still a draft law in Ukraine, but it may become mandatory in the near future.
ESG reporting audit by BDO in Ukraine ensures:
2. Strategy for attracting investment
Investors are increasingly using the ESG criteria to assess risks and prospects for companies. According to the research, 85% of institutional investors are willing to refuse to work with the companies ignoring sustainability. Independent auditing makes your company attractive to funds.
3. Protection against reputational and financial risks
Inaccuracies in non-financial reporting can lead to:
How we perform the audit of sustainability reporting?
Stage 1. In-depth analysis of the ESG strategy
Stage 2. Detailed data verification
Stage 3. Development of recommendations and improvements
Key benefits of working with BDO in Ukraine
The team of auditors at BDO in Ukraine is certified in sustainable development and ethics principles by ACCA (Professional Diploma in Sustainability course) and undertakes continuous training in sustainability reporting.
Take a step towards a sustainable future now!
BDO in Ukraine is your leading partner in ESG. Together, we will build a business that meets the challenges of the present and the future.
FAQ (Frequently Asked Questions)
The sustainability reporting audit is an independent review of the company’s ESG reporting that verifies the accuracy, transparency and compliance with international and national sustainability standards.
The audit builds trust among investors and stakeholders, ensures alignment with the global requirements (CSRD, GRI, SASB, TCFD, ISO 26000), mitigates reputational and financial risks and enhances business competitiveness.
On 18 October 2024, the Cabinet of Ministers of Ukraine approved the Strategy for Implementing Sustainability Reporting, which outlines the phased adoption of ESRS and audit requirements between 2024 and 2026. Legal requirements are expected to follow shortly.
The process consists of three key stages:
• Analysis of the company’s ESG strategy and alignment with the UN Sustainable Development Goals (SDGs)
• Verification of environmental, social and governance performance indicators
• Development of recommendations, reporting optimisation plans and investor communication tools.
The audit covers indicators related to the environment (CO₂ emissions and renewable energy), social issues (gender equality, occupational safety and community engagement) and corporate governance (anti-corruption policy, ethical standards and transparency of reporting).
A growing number of investors are taking ESG factors into account when making decisions. Independent audits confirm a company’s responsibility, enhancing its reputation and appeal to sustainable investment funds.
Lack of audit or inaccurate disclosures may lead to penalties, loss of stakeholder trust and a decline in share value due to non-compliance with sustainability regulations.
BDO in Ukraine does not only conduct audits but also develops sustainability strategies, delivers staff training and provides tools for effective ESG communication.
Glossary
ACCA Professional Diploma in Sustainability (ProDipSust) — an international certification for auditors and finance professionals confirming expertise in sustainable development and business ethics.
CSRD (Corporate Sustainability Reporting Directive) — the directive of the EU which establishes the mandatory requirements for sustainability reporting and auditing for companies.
ESG (Environmental, Social, Governance) — a sustainable development framework that encompasses environmental, social and governance dimensions of corporate activity.
ESRS (European Sustainability Reporting Standards) — the EU sustainability reporting standards which are mandatory for the companies within the European Union and are adopted in Ukraine.
GRI (Global Reporting Initiative) — the international standard for preparing sustainability reports which defines the principles for non-financial disclosure.
ISO 26000 — the international standard providing guidance on social responsibility for organisations.
SASB (Sustainability Accounting Standards Board) — a set of standards identifying material non-financial metrics for investors across various industries.
SDGs (Sustainable Development Goals) — the 17 global goals adopted by the UN to address poverty, protect the planet and promote prosperity.
TCFD (Task Force on Climate-related Financial Disclosures) — an international initiative that defines the standards for disclosing climate-related risks in corporate reporting.
Sustainability Reporting Audit — an independent review of the company’s ESG reporting to assess its reliability, accuracy and compliance with international and national standards.
Sustainability Reporting — the non-financial reporting disclosing information on the company’s performance in the field of ESG.
Sustainable Development — a strategic business approach that balances economic growth, social responsibility and environmental stability.