Regulations

Regulatory development on sustainability disclosures including the CSRD and ESRS

Stay informed on the evolving regulatory landscape of sustainability in the business context and transparency requirements that reflect the latest regulatory changes

the evolving regulatory landscape for sustainability

Corporate sustainability disclosures are evolving from voluntary to mandatory requirements across geographies. The EU Corporate Sustainability Reporting Directive (CSRD) including the European Sustainability Reporting Standard (ESRS), which was adopted as an EU Commission Delegated Regulation on July 31, 2023, requires companies to provide sustainability disclosures on an annual basis. This regulation details the implementation requirements and reporting standards for sustainability reporting for all large and small companies operating in the EU (including those with headquarters in other parts of the world), starting in January 2024. This regulation is expected to affect more than 50,000 companies which will be required to comply according to a phased-in timeline.

In addition, voluntary disclosure recommendations and standards such as the Global Reporting Initiative (GRI), the International Sustainability Standards Board (ISSB), the Taskforce on Climate-related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD) have published standards, recommendations, and implementation guidances covering topics deemed material to impact companies, society and planet over the company's direct operations, upstream and downstream value chain(s).

As companies prepare to provide disclosure according to regulations and standards, guidance from organizations such as the Carbon Disclosure Project (CDP), Science-based Targets (SBTi), and the Greenhouse Gas Protocol (GHG protocol), among others, are relevant and important for compliance with reporting standards and alignment to the current best practice.

Articles

regulations
CSRD transposition into EU national regulations
The deadline for the transposition of CSRD into national regulations for EU member countries and EEA countries, which is July 6, 2024, has now passed. What is the current status of the transposition across 27 EU member states and 3 EEA countries?
August 27, 2024
regulations
CSRD's ESRS E1 Climate Change
The first topical standard of the European Sustainability Reporting Standards (ESRS) is Climate Change. It is expected that most, if not all reporting companies will disclose information related to Climate Change based on this standard. According to Chapter 3.2 of ESRS 1 on Material matters and materiality of information, if a reporting company decides that climate change is not material and therefore do not disclose information required under the Climate Change topical standard, the company must provide a detailed explanation of the conclusions of its materiality assessment regarding climate change.
June 21, 2024
regulations
CSRD's ESRS 2: General Disclosures, Part 2
In Part 2 of the CSRD series, we review the remaining disclosure requirements in CSRD’s ESRS 2 General Disclosures. They are related to strategy and business models (SBMs), impacts, risks and opportunities (IROs), and minimum disclosure requirements on policies, actions, metrics, and targets (MDRs).
May 17, 2024
regulations
CSRD's ESRS 2: General Disclosures, Part 1
ESRS 2 General Disclosures is the set of sustainability disclosures required for all companies starting from the first year of disclosure. Thus, it is the most generally applicable section of ESRS and it is considered “sector-agnostic” and “cross-cutting” across Sustainability Topics. Except a few specific phase-in requirements outlined in ESRS 1 General Requirements, all disclosures in ESRS 2 General Disclosures are required for all entities starting from the first year of mandatory reporting.
April 16, 2024
regulations
CSRD's ESRS 1: General Requirements
We are starting a series on Navigating CSRD Requirements. In each instalment of this series, we deep dive into a specific section or disclosure requirement of the CSRD. In this first instalment, we look at CSRD Annex 1 European Sustainability Reporting Standards (ESRS) 1 - General Requirements.
March 26, 2024
regulations
Consolidation of ESG standards continues with the development of GRI, ISSB and ESRS
With the arrival of the final standards of ISSB on June 26, the leading global sustainability standards-setting organizations have published the latest standards for sustainability disclosure by large companies and SMEs worldwide.
June 30, 2023
regulations
Sustainability Disclosures in the EU with the European Sustainability Reporting Standards (ESRS)
On June 9th, the European Commission launched the four-week period of public feedback on its draft Delegated Act for the first set of the ESRS (European Sustainability Reporting Standards) drafted by EFRAG. Following this feedback period, the Delegated Act is expected to be adopted by the Commission in the second to third quarter of 2023.
June 13, 2023
regulations
SEC’s draft climate disclosure rule and ongoing regulatory activities by states
In March 2022, the US Securities and Exchange Commission (SEC) released draft rules intended to enhance climate-related disclosures. These rules would require all registrants of SEC to include certain climate-related disclosures in their periodic reports, including the annual report.
April 20, 2023

Tools

The Sustainability App is a digital resource on the regulatory development and thematic topics in Sustainability.


New!The CSRD Tool is a tool for Corporate Sustainability Reporting Directive (CSRD) reporting. It is based on EU Commission Delegated Regulation (EU) 2023/2772 and includes approximately 1,200 disclosure data points of the European Sustainability Reporting Standards (ESRS).
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