Internal Audit & ESG

European Study - 2023

Today, corporate performance is global and integrated, and the auditing professions have a key role to play in the quality and verification of the information delivered through this performance. It is with this in mind that IFACI is supporting the Audencia Multi-Capital Global Performance Research Centre in its research work,with the shared aim of supporting the transformation of the teams and professions involved in this essential new challenge.This summary presents the results of the second study carried out jointly by IFACI and Audencia’s Multi-Capital Global Performance Research Centre, with the aim of analyzing the situation of the profession with regard to ESG issues and practices in Europe, understanding the obstacles to integrating these issues, and guiding the actions of IFACI, and other IIA European Institutes. The Research Centre is supporting the profession in meeting this challenge.


Double materiality and sustainability matters

Key challenges to be addressed under the CSRD

There is a growing demand for greater transparency in sustainability information provided by companies, whether from the public, regulatory bodies or employees. The European Commission has responded by replacing the 2014 Non-Financial Reporting Directive (NFRD) with the Corporate sustainability Reporting Directive (CSRD). A key pillar of the European Union’s sustainable finance strategy, the CSRD aims to strengthen the publication of sustainability information by companies. In so doing, the very nature of corporate reporting is undergoing radical change. Sustainability
reporting must become as robust and rigorous as financial reporting.

IFACI, PwC, ORSE and the Global Multi-Capital Performance Chair have drawn up a joint study on this subject.


What are the connections between financial and non-financial accounting?

We thought it was time to take a step back again from the way in which researchers, practitioners and standard-setting bodies have approached the question of the connection between the environment, social and intangible factors and financial accounting since the 1970's. This questioning is obviously not new, as can be seen from the extensive work carried out by Price Waterhouse USA in the 90s (1991, 1992, 1993, 1994) and the many chapters devoted to the subject in books published by researchers Rob Gray (2001) and Stefan Schaltegger (1996, 2000), but also the Ordre des Experts Comptables (1996). We are therefore provided a new update, in July 2020, based on a study that lasted 5 months, carried out by the Audencia research chair team.

Thus, our research work consisted in forming a structured panorama of a large number of initiatives. The aim is not necessarily to be exhaustive, as this is a difficult task. However, we have structured a vision of the connections in order to enlighten all those who, in practice, in writing standards or in research, would like to tackle the question of the "accounting" of this "non-financial".

Short report in French

Long report in French

Doctoral studies