Cybersecurity in ESG Compliance
If you are developing ESG (Environmental, Social, and Governance) software, it must meet the strictest cybersecurity requirements!
As regulatory frameworks in the EU become more stringent, organizations must align their ESG strategies with robust cybersecurity measures to mitigate risks and enhance resilience. This article explores how companies can effectively implement ESG principles while strengthening cybersecurity, ensuring long-term sustainability and regulatory compliance.
The EU Cybersecurity Certification (EUCC) is essential for ESG software providers, as it ensures that their products comply with recognized cybersecurity standards, thereby safeguarding data integrity and system security. In light of increasing regulatory requirements for ESG disclosures and the growing risk of cyber threats, EUCC certification enhances the credibility and reliability of ESG software solutions.
Moreover, it provides assurance to regulators, clients, and stakeholders that the software meets high-level cybersecurity requirements, reducing potential risks associated with data breaches, non-compliance, or operational disruptions.
Beyond its technical benefits, such certification also carries significant prestige and provides a competitive advantage. Companies that obtain the certification gain an edge over their competitors and may appear more attractive to business partners and investors. At the same time, it significantly reduces risk factors through an annual evaluation process that focuses on sustainability and reinforces ESG objectives by identifying and correcting risks.
Additionally, the certification plays an important role in strengthening business and supplier relationships. Compliance with security standards fosters stable, long-term partnerships. The Common Criteria certification ensures that data flows only between authorized parties. It is also crucial in supporting innovation and ensuring compliance with GDPR and other regulatory requirements—both of which are essential for minimizing legal risks.
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Hungary Mandates EUCC Certification for ESG Software
ESG software must also be officially registered. In Hungary, the certification of ESG software is currently carried out by the Supervisory Authority for Regulated Activities (SZTFH).
The cybersecurity certification of ESG software is carried out using the European cybersecurity certification scheme based on Common Criteria (EUCC), in accordance with Commission Implementing Regulation (EU) 2024/482. The presence of the certification confirms that the ESG software meets at least the AVA_VAN.2 level of compliance.This certification corresponds to the EAL2 assurance level within the Common Criteria framework and focuses on vulnerability assessment capabilities. (Az ESG szoftverek kiberbiztonsági tanúsítása az (EU) 2024/482 bizottsági végrehajtási rendelet szerinti közös kritériumokon alapuló európai kiberbiztonsági tanúsítási rendszer (EUCC) alkalmazásával történik. A tanúsítvány megléte az ESG szoftver legalább AVA_VAN.2 szintű megfelelését igazolja.)
What Do EAL2 and AVA_VAN.2 Mean?
Each level represents stricter security requirements:
EAL1
Functionally tested, providing simple security assurance through analysis of security functions
EAL2
Structurally tested, examines source code and system architecture to verify security implementation
EAL3
Methodically tested and checked, adds significant security integration into evaluation
EAL4
Methodically designed, tested, and reviewed with substantial security measures
EAL5
Semiformally designed and tested with formal, repeatable security development
EAL6
Semiformally verified design and tested with increased focus on formal verification
EAL7
Formally verified design and tested, represents the highest level of assurance
These levels match the EU Cybersecurity Act's defined assurance categories. EAL1 through EAL3 fall under “Substantial”, while EAL4 through EAL7 belong to “High” assurance.
ESG software handles sensitive environmental, social, and governance data vital for investment decisions, making this enhanced scrutiny essential. Several vital factors have made EAL2 the standard for ESG software applications. This level requires more thorough independent testing and vulnerability analysis than EAL1, which uncovers security issues that might not be obvious at first. At EAL2, the evaluation requires examining the source code and system architecture to confirm the implementation of security functions.
The AVA_VAN.2 vulnerability assessment requirement serves as the life-blood of EAL2 or EAL 3 certification. Software that passes AVA_VAN.2 assessment shows minimum resistance against attackers with basic attack potential. The substantial assurance level, covering EAL1 to EAL3, identifies and reduces fundamental security vulnerabilities through direct examination and testing. This ensures the software can handle low-skill attacks and basic threat scenarios.
ESG software vendors who want EU cybersecurity certification must overcome several procedural hurdles as they direct their way through the EUCC framework. The certification trip starts when vendors submit a detailed Security Target (ST) description that outlines their product's security attributes and lines up with relevant assessment components. This original step marks the beginning of a complex process that needs substantial resources and technical expertise.
How Can CCLab Help?
CCLab has many years of experience obtaining certifications for the most important cybersecurity standards. Our expert team will guide you through every step of the certification process:
Certification Documentation – Assisting in preparing documentation to meet EUCC requirements.
Testing & Validation – Ensuring your product successfully passes all required security tests.
Fast and Seamless Process – Our experienced team accelerates certification so you can reach the market faster
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