Considerations on implementing ESG reporting in the Romanian public sector. The role of the Romanian Court of Accounts in ESG audit

Abstract

Increasing awareness of issues related to climate change, social inequities and corporate governance have led to the need for companies to present non-financial elements in their annual reports. Although, currently, the ESG concept is used by private sector entities, a number of regulatory bodies have focused on the possibility of introducing this type of non-financial reporting also within public entities. This article aims to analyze the possibilities regarding ESG reporting within the public sector in Romania, as well as the role of the Romanian Court of Accounts in terms of carrying out ESG audits, but also the implications of these audits on the performance of the audited entities. Also, the paper aims to analyze the possibility of developing an audit standard in this field, given the concern at the level of the international external public audit community (INTOSAI) regarding this aspect.

Keywords

• esg
• romanian court of accounts
• external public audit
• intosai
• sustainable development