Romania

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  • Date: 2/3/2014

The benefits of sustainability assurance for companies operating in Romania 

         

Geta Diaconu

Director,

KPMG Environmental Services

A KPMG in Romania study on Romania’s top 100 companies by revenue (N100) shows an increase in the total number of those reporting on sustainability, either in a local report or by providing data for a Corporate Responsibility (CR) Group report, from 54, identified by the similar study developed in 2011 (based on 2009-2010 public information) to 69 in the latest survey published in December 2013 (based on 2011-2012 publicly available data). 

 

 

According to the results of the 2013 survey, 33 companies out of N100 report locally information on their sustainability performance, either as a separate CR report or as a section of the annual report. The remaining 36 companies report only to the Group.

 

GRI Guidelines are the most commonly used sustainability reporting framework throughout the world and are recognized as a best practice barometer in this area. However, the reporting principles of these Guidelines are currently taken into consideration by only 4 out of the 33 companies in N100 reporting locally and none of these reports have external assurance. This indicates that generally, companies operating in Romania are not yet aware of the extent to which such external verification helps increase stakeholders’ confidence in the published information. Producing credible information on a company’s sustainability performance is increasingly accepted as being crucial to enhancing the company’s brand and reputation.

 

In a manner similar to a financial audit report, the verification of, and the issuance of an opinion related to the sustainability report, by an independent company, provides confidence in the reliability of the reported data and information in terms of relevance, consistency and accuracy. Additionally, this demonstrates to key stakeholders that the business is willing to open up to external scrutiny in areas of interest to stakeholders and in doing so helps to develop trust.

 

Apart from providing confidence related to the quality of the reported data, assurance of sustainability/CR reports creates confidence for the related companies’ management that non-financial information used within the business for performance management and decision making, is fit for purpose. Assurance helps to raise the profile of sustainability and embed management priorities within the business.

 

The importance and benefits of external sustainability assurance have also been presented by GRI in its publication "The external assurance of sustainability reporting", which you can find here.

 

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