CSRD and ESRS
Country or region: European Union
Building blocks: GRI, ISSB
Materiality: Double materiality - impact and financial materiality
Compliance: Mandatory
Applies to: Listed companies on regulated markets within the EU, and indirectly affects organisations in the value chain of those reporting
The EU Corporate Sustainability Reporting Directive (CSRD) is a regulation that sets mandatory disclosure requirements in the region. It requires corporates to disclose following the European Sustainability Reporting Standards (ESRS).
The ESRS provide a comprehensive picture of the sustainability performance of an organisation. Specifically, the standards cover 12 topics on environmental (including climate, pollution, water, biodiversity and circular economy ), social and governance issues.
| SEC Climate Disclosure
Country or region: United States
Building blocks: TCFD (partially)
Materiality: Single materiality - financial materiality
Compliance: Mandatory
Applies to: SEC-registered domestic or foreign companies
The US Securities Exchange Commission (SEC) ruling mandates US public companies and foreign private issuers provide climate-related information, that is material, in their regular reports and registration statements. The ruling focuses on climate-related risks, their management, and potential financial impacts.
Some states in the US also have their own disclosure requirements, with California the farthest advancements and often setting the agenda followed by other states.
In October 2023, the California Governor signed three climate disclosure laws that will shape climate disclosure practices beyond the state's borders. SB-253 (GHG emissions) and SB-261 (climate risks) apply to US businesses that meet specified revenue thresholds and do business in California.
| BRSR
Country or region: India
Building blocks: independent but interoperability with GRI, SABS, IR and TCFD
Materiality: Double materiality - impact and financial materiality
Compliance: Mandatory with a voluntary section
Applies to: The top 1,000 companies by market capitalisation by the Securities Exchange Board of India.
The Business Responsibility and Sustainability Report (BRSR) guide companies in reporting how they integrate 9 principles into their strategy and decision-making processes. These principles (National Guidelines for Responsible Business Conduct) cover topics on equitable development, transparency, social issues and sustainability (including climate, energy, water, pollution and biodiversity).
|
