Sarah Chenoun
Communications Officer, on parental leave
ClientEarth and Frank Bold bring you their ultimate legal CS3D analysis. It unpacks every single environmental element of the directive and can be used by national governments to unlock its potential in the next two years.
The recently adopted Corporate Sustainability Due Diligence Directive (CS3D) is the first cross-sectoral legislation requiring large companies operating in the EU market to identify, prevent, and address adverse impacts on human rights and the environment. This includes impacts throughout their own operations, those of their subsidiaries, and their business partners in their value chains. Companies must also implement a climate change mitigation transition plan to align their business model and strategy with the transition to a sustainable economy and the goal of limiting global warming to 1.5°C.
Furthermore, companies must externally communicate relevant information about their due diligence policies, processes, and activities, including findings and outcomes. For most companies subject to the CS3D, this reporting obligation is addressed by the Corporate Sustainability Reporting Directive (CSRD), which amended the Accounting Directive to require the disclosure of sustainability information.
This guide aims at encouraging ambitious and robust transposition, implementation and enforcement of the CS3D by:
On September 24, we will hold a webinar presenting the key findings and recommendations of the analysis, specifically on the environmental scope of the CS3D as well as climate transition plans.
We will also bring together sustainability experts and business to discuss the potential challenges ahead and the best practices linked to the implementation of Environmental Due Diligence.
Look forward to hearing from:
The European Commission has published its draft Delegated Regulation revising the European Sustainability Reporting Standards (ESRS). The revision follows the Omnibus I Simplification Package and is presented as a burden-reduction measure. Some of it is - but a closer reading reveals a set of changes that go well beyond simplification, departing from EFRAG's technical advice and disregarding formal recommendations from the European Supervisory Authorities. Many of these changes have significant implications for the quality and comparability of sustainability data available to the market and public.
By approaching sustainability strategically, companies can turn corporate reporting into a powerful tool to identify their exposure to climate and social risks in their value chains, future-proof the resilience of their business model and build trust with investors, customers and partners alike.
The EU Sustainable Finance Disclosure Regulation (SFDR) is a cornerstone of the EU’s sustainable finance framework, but the Commission’s proposed amendments risk weakening comparability, ambition and product differentiation if key loopholes remain unaddressed.
