Transition in sustainability reporting: Exploring stakeholders'barriers to moving to limites assurance under the corporate sustainability reporting directive (CSRD)

Abstract

This thesis investigates the transition towards limited assurance under the Corporate Sustainability Reporting Directive (CSRD) and the multifaceted barriers encountered by stakeholders during its implementation. The CSRD represents a fundamental shift in corporate transparency, extending mandatory sustainability reporting obligations to a much broader scope of companies across the European Union. By mandating the application of European Sustainability Reporting Standards (ESRS) and the principle of double materiality, the directive introduces unprecedented complexity in data collection, governance, and assurance practices. Although the CSRD sets out a phased approach beginning with limited assurance, many reporting companies face considerable difficulties in operationalising the new requirements. These include insufficient guidance on ESRS application, unclear regulatory expectations across Member States, and a lack of internal preparedness to produce verifiable ESG data. Assurance providers, meanwhile, must adapt their methodologies to non-financial reporting, balancing stakeholder trust with still-developing standards. The empirical analysis is based on eleven semi-structured expert interviews with professionals from Big Four audit firms, sustainability consultants, and a European Commission delegate. Using a stakeholder-centric framework, the study identifies key barriers across six predefined groups: reporting companies, auditors and consultants, regulators, investors, educational institutions, and Member States. Additional insights emerged around conceptual complexity, data availability, and value chain transparency. While barriers varied by stakeholder, recurring themes included regulatory ambiguity, capacity gaps, and divergent interpretations of limited assurance. The findings reveal that the implementation of limited assurance under the CSRD is not only a technical challenge but also a conceptual and organisational transformation. Many undertakings struggle with limited ESG maturity, the need for cultural change, and the absence of clear audit benchmarks. Furthermore, national differences in transposition and assurance traditions compound the complexity of ensuring comparability and credibility across jurisdictions. This thesis contributes to academic and professional discourse by offering a structured overview of real-time obstacles and emergent opportunities. It highlights the strategic importance of assurance in reinforcing the CSRD’s objectives and improving ESG data reliability. At the same time, it underscores the need for clearer regulatory guidance, harmonised practices, and targeted capacity-building initiatives to facilitate an effective transition. In conclusion, the move to limited assurance is a pivotal milestone in the European sustainability agenda. Yet, without addressing the identified stakeholder barriers, there is a risk that assurance becomes a box-ticking exercise rather than a meaningful enhancement of sustainability governance and transparency. This research calls for pragmatic reform, collaborative implementation, and continuous stakeholder engagement to support a robust and trusted sustainability reporting in order to contribute to a sustainable ecosystem.