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The Evolution of ESG Assurance: From Limited to Reasonable Assurance in European Markets

Terryann Kirui, Graca Opetsi, Sylvester Gbadrive, Jacinta Matheka

Abstract

This study examines the evolutionary transition of Environmental, Social, and Governance (ESG) assurance practices in European markets, specifically analyzing the progression from limited to reasonable assurance frameworks. Through a comprehensive analysis of regulatory developments, market practices, and stakeholder expectations from 2013 to 2023, this research provides critical insights into the transformative impact of the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). The findings reveal a systematic shift toward enhanced credibility and reliability in ESG reporting, driven by regulatory mandates and increasing investor demands. This evolution represents a fundamental change in how European companies approach sustainability reporting, with significant implications for transparency, accountability, and market confidence. The study contributes to the growing literature on ESG assurance by providing empirical evidence of market dynamics and regulatory effectiveness in driving assurance quality improvements.

Keywords

ESG assuranceCSRDESRSlimited assurancereasonable assuranceEuropean marketssustainability reportingregulatory compliance

References

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