On 10 November 2022, the EU Parliament adopted the Corporate Sustainability Reporting Directive (“CSRD“). The EU Council is expected to adopt the CSRD on 28 November 2022, after which it will be published in the Official Journal. The CSRD will then enter into force 20 days after publication and EU member states will have 18 months to integrate it into national law.

The CSRD will create new, detailed sustainability reporting requirements and will significantly expand the number of EU and non-EU companies subject to the EU sustainability reporting framework. The required disclosures will go beyond environmental and climate change reporting to include social and governance matters (for example, respect for employee and human rights, anti-corruption and bribery, corporate governance and diversity and inclusion). In addition, it will require disclosure regarding the due diligence processes implemented by a company in relation to sustainability matters and the actual and potential adverse sustainability impacts of an in-scope company’s operations and value chain.

The CSRD will begin to apply for many for financial years starting in 2024 (see “When does this apply?” below for further details). Companies should review the effect of the CSRD to understand how and when it may apply to them and what they should to do to prepare.

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Photo of James Taylor James Taylor

James Taylor is a partner in the Banking & Finance practice of the London office. James’ practice focuses on public and private offerings of debt and equity-linked securities, advising issuers and underwriters on the standalone issue and offering of retail and wholesale medium…

James Taylor is a partner in the Banking & Finance practice of the London office. James’ practice focuses on public and private offerings of debt and equity-linked securities, advising issuers and underwriters on the standalone issue and offering of retail and wholesale medium term notes, commercial paper, certificates of deposit, warrants, convertible and exchangeable bonds and covered bonds, as well as the establishment and update of platforms for the issuance of multiple types of securities, the structuring of liability management transactions and the provision of ongoing advice on securities laws, corporate governance and stock exchange requirements related to them.

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Photo of Patrick Scholl Patrick Scholl

Patrick Scholl is a partner and head of Mayer Brown’s Banking & Finance practice in Frankfurt. Patrick leads the Mayer Brown capital markets and derivatives offering in Germany with an European focus. His team advises on debt capital markets issuances and disclosures, debt…

Patrick Scholl is a partner and head of Mayer Brown’s Banking & Finance practice in Frankfurt. Patrick leads the Mayer Brown capital markets and derivatives offering in Germany with an European focus. His team advises on debt capital markets issuances and disclosures, debt issuance programms, hybrid capital instruments as well as liability management transactions. The OTC derivatives practice focuses on advising and negotiating master agreements (including repos and stock lending), collateral solutions, netting questions and provides transaction support with regard to all underylings, including equity-linked, credit-linked, fund-linked or commodity-linked derivatives.

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