What does an ESG report audit consist of?

An ESG Report Audit is a process that enables companies to assess their operations against environmental, social and corporate governance criteria. Through this audit, companies can better understand which aspects of their operations have the greatest impact on these three key areas. During an ESG audit, independent experts check, for example, whether a company takes care to minimize its environmental impact, how it treats its employees and whether it is fair to customers and investors. The audit can include a review of documents, interviews with employees and analysis of company reports and strategies. This allows companies to, for example, better manage risks or gain the trust of stakeholders An audit also helps investors and consumers make informed decisions about doing business with a company.

In 2024, large listed and unlisted companies that meet at least two of three criteria: employment of more than 250 employees, revenues of more than €40 million or assets of more than €20 million are subject to an external audit obligation for ESG reports in Poland. The obligation also applies to financial institutions such as banks and insurance companies. In addition, the audit will cover companies considered to be entities of public importance, such as energy companies. The requirements stem from the EU’s Corporate Sustainability Reporting Directive (CSRD), which makes ESG reporting and auditing mandatory.