Audit of Sustainability Reporting

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Audit of Sustainability Reporting

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: 

  • Full compliance with standards (GRI, SASB, TCFD, ISO 26000)
  • Adaptation to Ukrainian legislation
  • Data accuracy (CO₂ emissions, waste management, social programmes).

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:

  • Fines for regulatory violations
  • Loss of trust among stakeholders
  • Decline in share value (as was the case with a number of European companies in 2022).

 

How we perform the audit of sustainability reporting?

Stage 1. In-depth analysis of the ESG strategy

  • Assessment of compliance with SDG targets (17 UN global goals)
  • Audit of ESG integration into business processes (supply chains, HR policies)
  • Identification of priority areas for your sector (e.g. energy efficiency for manufacturing).

Stage 2. Detailed data verification

  • Environmental indicators: emissions into the atmosphere, use of renewable energy sources
  • Social initiatives: gender equality, occupational safety, support for local municipalities
  • Governance: anti-corruption mechanisms, business ethics, transparency of meetings.

Stage 3. Development of recommendations and improvements

  • Plan for optimising ESG reporting in accordance with the CSRD directive and the ESRS standards
  • Investor communication tools (reports, presentations, webinars)
  • Employee trainings on integrating sustainable development.

 

Key benefits of working with BDO in Ukraine

  • International expertise: 15+ years of experience in ESG auditing for the EU and the US companies
  • Localised solutions: Adaptation of international standards to the Ukrainian market
  • Comprehensive approach: From auditing to turnkey ESG strategy development.

 

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.

Key Contacts

Sergiy Shtantsel

Sergiy Shtantsel

Audit Partner, Deputy Director of BDO in Ukraine
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FAQ (Frequently Asked Questions)

  • What is a sustainability reporting audit?

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.

  • Why should companies conduct a sustainability reporting audit?

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.

  • When will sustainability reporting audits become mandatory in Ukraine?

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.

  • How does BDO conduct an ESG reporting audit?

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.

  • What data is reviewed during an ESG reporting audit?

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).

  • How does ESG reporting audit support investment attraction?

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.

  • What risks arise without a sustainability reporting audit?

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.

  • How does BDO support companies in implementing sustainability reporting?

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.