The CSRD: A new frontier in sustainability reporting
The Corporate Sustainability Reporting Directive (CSRD) is poised to revolutionise how companies disclose their sustainability performance. With wide-reaching implications for businesses across Europe and, even those headquartered across the globe, compliance is critical.
Our team of EU lawyers provide the guidance you need to navigate the CSRD, its enforcement mechanisms, and the specific requirements it imposes.
The CSRD and the European Sustainability Reporting Standards (ESRS) introduce mandatory sustainability reporting for companies and their subsidiaries that fall within its scope. Determining if you fall within this is one of the biggest challenges businesses face.
We can help you identify the scope of your obligations based on your company’s size, sector, and other key factors. We also provide guidance on engaging with your auditors to ensure that your reporting aligns with the CSRD’s standards.
We frequently collaborate with consultants on ESG reporting, including our management consulting arm, OXYGY, which focuses on embedding sustainability into core business strategies. We also work with data-driven consultants who offer platforms to monitor, evaluate, and enhance sustainable innovation processes.
We don’t just explain how EU laws apply—we show you how they work in practice. With expertise at the intersection of policy, law, and business, we give you the insight needed to navigate complex regulatory challenges.
Find out more on the areas our experts can guide you in below.
The CSRD is a complex and far-reaching piece of legislation which poses a significant challenge for companies headquartered outside the EEA (European Economic Area). In our experience, many non-EEA headquartered businesses may be unaware of the extent to which the CSRD affects them, as it requires detailed sustainability reporting from EU/EEA based subsidiaries and branches.
We have seen a surge of questions from clients headquartered outside the EEA seeking advice on the CSRD. With its growing influence, it’s becoming increasingly important for such companies to understand and comply with these new regulations. Our team has a proven track record of helping international companies navigate the complexities of the CSRD and develop effective reporting strategies.
For clients who have already completed their CSRD scoping and reporting, our team can provide valuable insights into the European Sustainability Reporting Standards (ESRS). We can help you understand the specific requirements of these standards and ensure that your reporting aligns with the latest best practices. Whether you have questions about the scope of the ESRS, the data that needs to be disclosed, or the format of your report, our experts can provide tailored guidance.
In anticipation of the increased scrutiny from auditors, we are offering confirmatory memoranda to our clients. These memoranda provide a formal confirmation of the scoping process and the methodology used to identify the entities subject to the CSRD and to report data points under ESRS. By providing this documentation, we aim to streamline the audit process and give auditors a solid foundation for their review. Ultimately, our goal is to help clients prepare for the challenges ahead and ensure that their CSRD reporting is accurate, not sanctionable, liability-mitigated and passes the limited (or later on the reasonable) assurance by auditors.
Under the CSRD and the ESRS, information provided in the sustainability statement shall include information on the material impacts, risks and opportunities connected with the reporting companies through their direct and indirect business relationships along the value chain. Based on the above requirement, our team provides guidance on reporting obligations from a broader value chain perspective and can help you assess your company's value chain, map disclosure requirements covering value chain information, identify potential risks and opportunities, and develop strategies for mitigating negative impacts and maximising positive contributions.
We also offer guidance from an employment and contractual perspective. The CSRD has implications for both your company's workforce and its relationships with suppliers and customers. Our team can help you understand how the CSRD affects your employment practices, contractual obligations, and overall corporate governance. We can assist you in developing policies and procedures that align with the CSRD's requirements and promote a sustainable and ethical business environment.
One of the key areas of focus for many of our clients has been the intersection of the CSRD and employment practices. We've received a steady stream of ad hoc queries related to understanding the materiality threshold for workforce-related disclosures. Our experts have helped clients determine which aspects of their workforce and employment practices are most significant to their overall sustainability performance and should be included in their CSRD reports.
Many HR departments are particularly concerned about the data requirements of the CSRD. Our team can help you understand the specific information that needs to be disclosed and develop strategies for collecting and reporting this data efficiently. We can also assist you in negotiating with your auditors to ensure that their requests are reasonable and aligned with the CSRD’s requirements.
In addition to addressing specific client queries, we've also been actively engaged in horizon scanning to stay ahead of emerging trends and developments in the CSRD and related regulations, such as in areas of whistleblowing, pay transparency, adequate minimum wages and gender diversity. This proactive approach allows us to provide our clients with the most up-to-date and relevant advice on employment-related disclosures and best practices.
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CSRD Scoping Compass: International CSRD scoping simplified
Our CSRD Scoping Compass helps you demystify your obligations as a non-EU/EEA headquartered company and assists in navigating the reporting process, ensuring you understand and meet the EU's expectations for sustainability disclosure.
