Applying ISRS 4400 (Revised) agreed-upon procedures to the verification of ESG indicators [Articol]

Abstract

Purpose of the article: The paper explores the use of Agreed-Upon Procedures (AUP),regulated by ISRS 4400(Revised), as a mechanism for verifying ESG (environmental, social, governance) indicators under the CSRD Directive and ESRS standards. The study aims to highlight the relevance and practical applicability of AUP in strengthening the credibility of sustainability reporting, particularly when full assurance engagements are not required or feasible. Methodology: combines analysis of the international and European regulatory framework with the mapping of ESRS indicators to potential AUP procedures and illustrative case studies on ESG data verification, including CO₂emissions, workforce diversity, and supply-chain traceability. The conclusions show that AUP provides a flexible, costefficient solution for the selective verification of sustainability information, mitigating greenwashing risks and facilitating the gradual integration of companies – especially SMEs –into the new European reporting framework. Originality: of the research lies in its proposed mapping model between ESRS indicators and applicable procedures, and in identifying innovation pathways through digitalization and the use of emerging technologies such as blockchain and artificial intelligence. Conclusions: Agreed-Upon Procedures (AUP) represent a practical and flexible assurance mechanism that enhances the credibility of ESG disclosures under the CSRD and ESRS framework, supporting transparency, reducing greenwashing risks, and facilitating the gradual alignment of companies with European sustainability standards.