ПЕРЦЕПЦИЈЕ ЕФИКАСНОСТИ ЕКСТЕРНОГ УВЈЕРАВАЊА У ESG ИЗВЈЕШТАВАЊУ
PERCEPTIONS OF THE EFFECTIVENESS OF EXTERNAL ASSURANCE IN ESG REPORTING

Author(s): Miloš Grujić, Isidora Džombić
Subject(s): Energy and Environmental Studies, Governance, Environmental interactions, Accounting - Business Administration
Published by: Savez računovođa i revizora Republike Srpske
Keywords: ESG; external assurance; sustainability; greenwashing;
Summary/Abstract: The paper’s main goal is to highlight the importance of information disclosure in environmental, social and corporate governance reporting. The paper will point out the scope, limitations, and challenges of disclosing information related to business following ESG principles and analyze the perceptions of different stakeholders on this topic. The paper is based on a systematic review and analysis of numerous scientific papers and shows different perceptions about the effectiveness of external persuasion in preventing greenwashing. The paper states the views and findings of the authors who pointed out numerous omissions and challenges related to financial reporting of projects that support ESG principles. The authors’ most common findings include concerns about unclear reporting and validation practices, lack of expertise in this specialized and complex field; the costs of the assurance process - especially for small market participants and the lack of control over the reliability of the data used. This article explains the reporting practices, the exchange of standards and laws and explains the rational myths when reporting on issues related to ESG principles.

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