Sustainability Assurance Service Provider
The EU Corporate Sustainability Reporting Directive (CSRD) sets out how certain companies will have to disclose information about their environmental, social and governance (ESG) activities in line with the European Sustainability Reporting Standards (ESRSs). It also requires third party assurance (limited assurance initially) on these ESG disclosures and provides for a regulatory regime for the education, training, authorisation and oversight of sustainability assurance service providers.
It is anticipated that the Institute, as a Recognised Accountancy Body (RAB), will have authority to authorise sustainability assurance service providers in Ireland when the Irish legislation transposing the CSRD is effective (expected by July 2024).
Eligibility for Sustainability Assurance Service Provider (SASP) status
The Irish government has taken a policy position to allow only approved statutory auditors to be SASPs in Ireland at this time. Transitional arrangements allow for individuals who are approved as statutory auditor (responsible individual/RI) before 1 January 2026 to obtain SASP status without undertaking the examination and 8 months practical training in relevant sustainability matters which will be required thereafter.
Those approved as RI before 1 January 2026 must undertake appropriate CPD to demonstrate the necessary competence for providing assurance on sustainability reporting.
Application for SASP status
The Institute will consider applications for SASP status from Irish registered RIs at Institute audit firms registered in Ireland. An RI applying to the Institute for SASP status must be designated as such by the audit firm. To initiate an application to the Institute for SASP approval of a RI, the audit firm’s audit compliance principal should email sasp-applications@charteredaccountants.ie requesting access to the online application form.
The Institute will prioritise applications from RIs who, if authorised, will be engaged to report on the sustainability reports of those companies in scope of the CSRD for the financial year 2024 (FY24) (reporting during 2025).
CPD for SASP applications under transitional arrangements
The relevant CPD must address the following four topics:
- Legal requirements and standards relating to the preparation of annual and consolidated sustainability reporting;
- Sustainability analysis;
- Due diligence processes with regard to sustainability matters;
- Legal requirements and assurance standards for sustainability reporting adopted pursuant to the CSRD and related Irish legislation
A minimum of 60 hours of relevant CPD, a portion of which should be structured, is required. The Institute will provide applicants for SASP status with a standard template for the documentation of relevant CPD undertaken. The
CPD template has been made available here.
Regulatory Fees for SASPs
Regulatory fees will be collected by the Institute on approval of SASPs and on an annual basis to provide for the necessary resources to ensure a robust regulatory regime for SASPs.
Further information
The Institute has prepared answers to some frequently asked questions (FAQs) to provide information to Institute registered audit firms and RIs in relation to SASP status.
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