CSRD reporting requirements place Compliance function in the spotlight

Existing compliance topics, such as anti-bribery and corruption, diversity, inclusion and equity, and integrity risk culture are included within the European Sustainability Reporting Standards (ESRS) for reporting under the Corporate Sustainability Reporting Directive (CSRD). We see that organizations of all sizes often have challenges with quantifying compliance and developing monitoring metrics for these areas. The expectations laid out within the European Sustainability Reporting Standards (ESRS) for reporting under the Corporate Sustainability Reporting Directive (CSRD) place the compliance function in the spotlight. Existing compliance topics, such as anti-bribery and corruption, diversity, inclusion and equity, and integrity risk culture are included. While most Compliance functions include these topics within their activities, we see that organizations of all sizes often have challenges with quantifying compliance and developing monitoring metrics for these areas. Therefore, companies may have large gaps to fill in order to meet the ESRS expectations. Those companies should look towards their compliance programs and integrated control frameworks to support in the transition.

This article has previously been published in Compliance, Ethics & Sustainability.

Rebecca Kozlowski Senior Consultant, Forensic KPMG in the NetherlandsSerap Tutkun  Senior Manager, Forensic KPMG in the Netherlands

Laura Schroder-Van Oorschot Senior Manager Capital Markets AAS KPMG in the Netherlands