dhpg relies on new AI tool for auditing sustainability reports

Bonn,September 3, 2024 - Together with Deep Neuron Lab, the leading provider of AI-based auditing of reporting obligations, the medium-sized auditing and consulting firm dhpg has developed an AI tool for more efficient auditing of sustainability reports in accordance with the European Sustainability Reporting Standards (ESRS). From 2024, companies with a balance sheet total of EUR 25 million, sales revenue of EUR 50 million or an average of 250 employees will be obliged to prepare a sustainability report. dhpg will use the AI tool in 2025 to audit sustainability reports.

New requirements due to ESRS  

The introduction of ESRS presents companies and auditors with new challenges. Companies must record a large number of data points and a precise materiality analysis is necessary to identify relevant topics. For auditors, this requires in-depth expertise and new valuation methods for non-financial information.

"2025 is the first reporting year," says Hagen Müller, Senior Partner at dhpg and responsible for the project. "For many companies, sustainability reporting is still completely new. We therefore assume that the data is not as structured as we know it from traditional auditing. This is where AI can support us and make the audit process more efficient."

AI makes the process more efficient

The materiality analysis forms the basis for identifying the relevant topics and data points that subsequently need to be recorded and checked. This is where the Notes Auditor comes into play. The AI tool from Deep Neuron Lab adjusts the scope of the audit based on the materiality analysis prepared by the client.

"The Notes Auditor offers a dynamic checklist that adapts to company-specific criteria such as company size, materiality analysis results and phase-in. This focuses the audit on the relevant parts of the standards, making the complexity and scope of the audit manageable," explains Andreas Schindler, CEO of Deep Neuron Lab.

Using the checklist, which is continuously adapted to the current ESRS, the software guides the auditors step by step through the audit. The audit procedures are documented automatically. The use of AI makes auditing sustainability reports much easier.

Planned application for sustainability report audits starting in 2025

dhpg plans to use the AI tool from the coming audit season. Many SMEs are currently still in the process of compiling their data for next year's reporting. "Many companies are still in the phase of fleshing out their reporting content and establishing reporting structures," says Hagen Müller. dhpg not only audits the sustainability report, but also supports SMEs with the preparatory work. This includes clarifying the status quo, determining the key areas and defining measurable goals.

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