A New Service Line from Proses Consulting: CSRD/ESRS Independent Assurance

As Proses Consulting, we are pleased to announce that, with the entry into force of the European Union's Corporate Sustainability Reporting Directive (CSRD), we have launched a new service line. With the scope expanded under our TÜRKAK accreditation, we have begun to provide independent assurance for reports prepared in accordance with the European Sustainability Reporting Standards (ESRS) under the CSRD.

CSRD and the Independent Assurance Obligation

The CSRD, which entered into force on 5 January 2023, aims to gradually move more than 50,000 companies to a new generation of sustainability reporting. One of the most important innovations introduced by the directive is the obligation for all reported sustainability data to be verified by an independent verifier at the "limited assurance" level. In the coming years, this level will rise to "reasonable assurance".

Large holding companies in Türkiye, manufacturers that are subsidiaries of an EU-based parent company, and exporters with annual turnover above 150 million euros to the EU fall under this obligation.

Service Scope

Our new service line has been structured to cover ESRS 1, ESRS 2 and all thematic standards (E1-E5 environment, S1-S4 social, G1 governance) under the CSRD. Our assurance work includes the following steps:

1. Pre-planning and risk analysis: The conformity of the reported topics to the materiality analysis, the identification of material areas and risk mapping.

2. Review of the double materiality analysis: The adequacy and methodological accuracy of the impact materiality and financial materiality assessments.

3. Data and evidence review: Confirmation of the traceability of every reported data point for the ESRS indicators down to the source system.

4. Field audit: Testing the field application of data collection procedures at production facilities using a sampling method.

5. Writing the assurance report: Preparing a limited assurance report in accordance with the ISAE 3000 (Revised) standard.

Standards and Accreditation

Who Is It Suitable For?

Our new service line is designed for the following organisation profiles:

• Large manufacturing and service companies that are Türkiye subsidiaries of an EU-based parent company
• Exporting organisations with annual turnover above 150 million euros to the EU market
• Publicly traded companies listed on BIST and preparing for CSRD compliance
• Organisations within the scope of the POA (Public Oversight Authority) subject to the TSRS (Türkiye Sustainability Reporting Standards) obligation
• Financial institutions requiring independent assurance for sustainable bond and green loan applications

From the Head of Our Sustainability Team

The CSRD marks the beginning of an era in which sustainability reporting ceases to be a communication tool and becomes a management system conducted within audit discipline. For us, independent assurance is not merely the fulfilment of a regulatory obligation; it is the descent into the field of an evidence-based discipline in which the traceability of the figure behind the report is safeguarded. Our TÜRKAK accreditation is the guarantee of this discipline's compliance with international standards.

Pilot Projects Have Begun

With the launch of our new service line, we have begun pilot assurance work with three organisations from the manufacturing, finance and energy sectors. These pilot projects aim to publish the 2024 financial-year reports with independent assurance in the spring of 2025. The experience gained from the pilot processes will be integrated into our service portfolio, whose scope will expand in the following years.

Application and Contact

To obtain detailed information about the CSRD/ESRS independent assurance service, to request a quote or to join the pilot programme, you can contact us:

• E-mail: info@prosesdanismanlik.com.tr
• Phone: +90 212 532 37 61

Frequently Asked Questions

1. Which companies can receive the CSRD assurance service?

   All Türkiye organisations with EU subsidiaries that fall directly within the scope of the CSRD, as well as companies wishing to report voluntarily to the ESRS standards, can benefit from this service. In addition, parallel assurance support can be provided to POA-scope organisations with a TSRS obligation.

2. What is the difference between limited assurance and reasonable assurance?

   Limited assurance provides "a negative assurance that the report is free from material misstatement". Reasonable assurance, on the other hand, is a higher level of assurance that confirms the accuracy of the report with a positive statement. The CSRD introduces a limited assurance obligation in the first years; in the coming years it will move to reasonable assurance.

3. How long does the assurance process take?

   Depending on company size and the maturity of the report, a process of 8 to 14 weeks is planned from the start of the preliminary review to the delivery of the assurance report. In the pilot projects, including the field audit, it was calculated at an average of 10 weeks.

4. Is the assurance process easier for a company that already has a GRI report?

   Because there is a high degree of overlap between GRI and ESRS across many topics, a well-structured GRI report provides a solid foundation for the transition to ESRS. However, additional preparation is required for ESRS, which introduces different requirements in terms of double materiality analysis, digital tagging and certain quantitative data points.

5. Can independent assurance be obtained from the same team as sustainability consulting?

   No. By the principle of independence, the consulting team that prepares an organisation's sustainability report cannot be the verifier of the same report. Within Proses Consulting, the consulting and assurance teams are organisationally separated; moreover, if the client prefers, it is also possible to work with different teams.