Project R-14576

The identification and evaluation of the drivers, opportunities and legal risks of ESG-reporting for SMEs and optimizing the bridging function of the auditor and accountant in this regard. (Research)

This research explores the impact of the Corporate Sustainability Reporting Directive (CSRD) within the European Green Deal on companies, with a particular focus on ESG reporting among SMEs. The CSRD requires companies to communicate transparently about their climate, social responsibility and governance performance. Since the CSRD focuses on large companies, attention to ESG reporting within small and medium-sized enterprises (SMEs) remains limited. This while they will also be (indirectly) affected by the CSRD directive through their suppliers, clients or other stakeholders. This research identifies the drivers of ESG reporting, including the growing influence of ESG factors on corporate reputation and investment decisions. It highlights the opportunities that ESG reporting can provide, such as reputation enhancement, efficiency and value creation, but also explores the legal risks that companies may face and this specifically for SMEs. A key aspect of the study is the role of external auditors and accountants in ESG reporting. It explores how these professionals can guide SMEs in the preparation of ESG reports, where not only their expertise in corporate reporting is important, but also building a relationship of trust with clients for a sustainable transition. Ultimately, this research aims to bridge the gap between academic insights and practical applications, with the goal of preparing SMEs for a context in which ESG is becoming increasingly central. This from a perspective that considers both risks and opportunities, while also highlighting the social value of ESG reporting.

01 January 2024 - 31 December 2027