On this Energy Minute episode, Dana Dohse and Steven Goldman take a deep dive into the Corporate Sustainability Reporting Directive (CSRD) legislation that will be taking effect in the European Union in 2024. Under the new legislation, aligning with Paris climate goals or ensuring ethical supply chains will move from voluntary practices or proactive risk management to regulatory requirements with oversight by EU nations.
Listen in as they examine the legislation's details, requirements, and potential impact on businesses and society, discuss the differences between the CSRD and the proposed SEC rules on climate-focused disclosure, how they reflect existing sustainability reporting standards such as SASB/ISSB standards, and analyze the legislation's implications and advise companies on how to prepare for compliance.
Key Takeaways
The EU adopted a “double materiality” approach as the basis of the new legislation, meaning it encompasses not only ESG issues with material impacts on financial performance, but also impacts of the company's operation on the environment and society.
Environmental, social, and governance (ESG) factors covered by the CSRD will be significantly more far-reaching than the proposed SEC rules on climate-focused disclosure, encompassing issues including climate change mitigation and adaptation, water and marine resources, equal treatment and opportunities, sustainability risk management and internal controls, and anti-corruption policies, to name a few.
Unlike the proposed SEC rules, the CSRD explicitly includes Scope 3 emissions in its carbon footprint disclosure requirements.
References
Press release on the adoption of the CSRD: https://www.europarl.europa.eu/news/en/press-room/20221107IPR49611/sustainable-economy-parliament-adopts-new-reporting-rules-for-multinationals
https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en
Harvard Law School analysis: https://corpgov.law.harvard.edu/2022/08/23/eu-corporate-sustainability-reporting-directive-what-do-companies-need-to-know/
Ingredients for a Nuclear Power Renaissance with Brookfield All-Star Panel
Energy Minute: How The Emissions First Partnership is Putting Emissionality Front & Center
Devil’s in the Details: Advancing Granular Carbon Data with EnergyTag’s Killian Daly
REPLAY: Creating Sustainable Infrastructure-as-a-Service with Generate Capital’s Nam Nguyen
Energy Minute: Green Tariffs as a Path for Sourcing Clean Energy
Decarbonizing Flight: Growing the Sustainable Aviation Fuel Market with Kim Carnahan
Moving Corporate Clean Energy Adoption “Beyond the Megawatt” with Apex’s Erik Haug
Evolving Nuclear Power and Its Role in Decarbonization with Westinghouse’s Dr. Rita Baranwal
Pioneer Portrait: Inside Jan Pepper’s Push to Provide 24/7 Renewable Energy for Californians
Energy Minute: A Shift Towards Mandatory Due Diligence on Sustainability in the EU
Building (and Rebuilding) for Net Zero with Architect Lori Ferriss
REPLAY: Taking Data Centers to Net Zero with Iron Mountain’s Chris Pennington
Energy Minute: Appetite for Hydrogen is Booming, But How Do We Ensure It’s Green?
Creating Sustainable Infrastructure-as-a-Service with Generate Capital’s Nam Nguyen
Energy Minute: Get in the Game: Shifting into a Climate, Sustainability or ESG Career with Mike Hower
Scaling Up Local Government’s Sustainability Ambitions with Harris County’s Lisa Lin
Energy Minute: Growing the Carbon Impact of Renewable Energy through Additionality or Emissionality
Growing Clean Energy Jobs & Decarbonizing Low-Income Communities with Nicole Steele, U.S. EPA & DOE
Energy Minute: Reuse, Repurpose or Recycle - Pathways to Reducing Waste in Key Clean Energy Sectors
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
NABOR® TALKS
U.S Property Podcast
Aligned Money Show
The Ramsey Show
Planet Money