With the Corporate Sustainability Reporting Directive (CSRD) kicking in for around 71,000 European businesses over the next few years, thousands are working to develop robust sustainability reports that meet their regulatory requirements.

In this process, many businesses face a critical challenge: ensuring their sustainability reports are verified, reliable, and trustworthy. Standard 3810N, a Netherlands-specific assurance standard, plays a key role in fulfilling this need for Dutch companies.

Standard 3810N is issued by the Dutch Royal Organization of Accountants (NBA), and provides guidance on how assurance engagements on sustainability reports are conducted and evaluated. It came into play in 2022, focusing on corporate sustainability reports, and was an important precursor to the European CSRD regulation.

In this article, we'll explore the essentials of Standard 3810N and its critical role in ensuring sustainability assurance.

What is Standard 3810N?

Standard 3810N is the Dutch professional standard for assurance engagements on sustainability reports.

It is also called Standard 3810N Assurance engagements on sustainability reporting and provides practitioners with guidance on how assurance engagements are conducted for ESG reporting.

3810N covers both reasonable and limited assurance, providing a standardized framework for practitioners to assess the completeness, accuracy, and reliability of sustainability information.

The standard applies to assurance engagements on a sustainability report (or part thereof) in the Netherlands. As such, the standard applies to assurance engagements regarding the European Sustainability Reporting Standards (ESRS) sustainability statement for financial years starting on or after January 1, 2024. This is in line with the CSRD requirement that sustainability information must be subject to assurance.

The NBA regularly updates Standard 3810N to reflect new insights and regulatory developments. Currently, Standard 3810N is applicable in the Netherlands until the European Standard on Sustainability Assurance (ESSA) has been adopted by the European Commission. This is currently anticipated to happen no earlier than October 2026.

In 2024, a new International Standard on Sustainability Assurance (ISSA 5000) was adopted by the International Auditing and Assurance Standards Board (IAASB). This standard will serve as the basis for the European ESSA. National standards like Standard 3810N will continue to apply until ESSA has been adopted.

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How does 3810N relate to the CSRD?

The CSRD requires limited assurance on sustainability reports from 2025 onwards (for Wave 1 reporting entities), with a planned transition to reasonable assurance by October 2028.

Standard 3810N specifically guides how practitioners can execute this assurance in the Netherlands. Standard 3810N enables practitioners to conduct assurance engagements in line with CSRD requirements, making it an essential tool for Dutch businesses navigating the CSRD landscape.

In addition, Standard 3810N includes guidance on how the assurance engagement relates to the double materiality assessment (DMA). It provides guidance on how practitioners can examine whether the DMA is conducted in accordance with the applicable standards, including ESRS 1.

Standard 3810N will remain the applicable standard until ESSA has been adopted by the European Commission.

Who does Standard 3810N apply to?

Standard 3810N applies to assurance engagements on sustainability reporting for companies in the Netherlands, with a focus on those required to comply with the CSRD. In practice this means:

• Large companies that are subject to CSRD requirements
• Businesses that voluntarily choose to have their sustainability reporting assured under 3810N
• Auditors conducting assurance engagements on sustainability reports

However, 3810N also provides a framework for smaller companies and other organizations that opt to have their sustainability reporting assured, even if not required to do so under the CSRD.

What are the key requirements of Standard 3810N?

Standard 3810N includes several key requirements.

Understanding the entity's sustainability reporting framework

Practitioners must assess the suitability and completeness of the sustainability reporting framework used by the company. Standard 3810N includes guidance on examining whether the framework meets the applicable standards and regulatory requirements.

Evaluating the double materiality assessment

One of the more unique aspects of Standard 3810N compared to other assurance standards relates to the double materiality assessment. Standard 3810N includes specific guidance on how practitioners assess whether the DMA is conducted in accordance with the applicable standards.

Assessing the risk of material misstatement

Practitioners using Standard 3810N must identify and assess the risks of material misstatement in the sustainability report. They then design procedures to detect these misstatements, ensuring the integrity of the information provided.

Evaluating the appropriateness and completeness of the sustainability disclosures

Standard 3810N requires practitioners to assess whether sustainability disclosures are appropriate and complete. This includes verifying that all relevant information is included and that the disclosures accurately reflect the company's sustainability performance.

Reporting requirements

Standard 3810N includes requirements related to reporting. The standard makes a distinction between limited and reasonable assurance, and lays out the requirements for the form and content of the assurance report.

What is the difference between limited and reasonable assurance?

Standard 3810N covers both limited and reasonable assurance.

Limited assurance involves a lower level of scrutiny and is expressed as a negative conclusion. For example: 'Nothing has come to our attention that causes us to believe that the sustainability information in the report has not been prepared, in all material respects, in accordance with the applicable criteria.'

Reasonable assurance involves a higher level of scrutiny and is expressed as a positive conclusion. For example: 'In our opinion, the sustainability information in the report has been prepared, in all material respects, in accordance with the applicable criteria.'

For CSRD, limited assurance is required from 2025 onwards for Wave 1 reporting entities. The CSRD includes a plan to transition to reasonable assurance by October 2028.

How does an assurance engagement under 3810N work?

An assurance engagement under Standard 3810N involves several key steps:

1. Planning: Practitioners evaluate risks and develop an assurance plan tailored to the company's sustainability reporting framework and ESRS requirements.
2. Execution: Procedures are performed to assess the accuracy, completeness, and reliability of the sustainability information.
3. Evidence-gathering: Sufficient evidence is collected to support the assurance conclusion.
4. Reporting: A formal assurance report is issued, communicating whether the sustainability information meets the applicable criteria.

How can companies prepare for a 3810N assurance engagement?

Preparing for a Standard 3810N assurance engagement involves a number of key steps.

Companies must first understand the standards and frameworks that apply to them, including those under the CSRD.

In addition, companies should prepare thorough documentation of their sustainability data collection, calculation methods, and internal controls, as these will be evaluated during the assurance engagement.

Companies should also conduct a robust double materiality assessment (DMA), as Standard 3810N requires practitioners to examine whether the DMA is conducted in accordance with the applicable standards.

Finally, companies should engage with their assurance provider early in the process to align on reporting requirements and expectations, to ensure a smooth assurance engagement.

How Coolset supports 3810N audit readiness

Coolset is designed to help companies prepare for sustainability assurance, including engagements under Standard 3810N. Coolset provides tools to help companies build a traceable, audit-ready evidence trail, conduct a structured double materiality assessment, and generate CSRD-aligned sustainability reports.

If you're preparing for your first CSRD report and want to ensure your reporting is ready for assurance, get in touch with the Coolset team today.

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