I am making this post because the information provided represents an ongoing march toward sustainability and/or ESG standards and disclosures; these standards will apply to some U.S. based businesses including executive officers, directors, boards, audit committees and other committees, compliance professionals, and internal and outside independent auditors; and these developments might be used by or might impact later (perhaps soon) established U.S. (or even California) standards and/or disclosures. These standards will also be used by and will impact other stakeholders in sustainability and ESG including the major accounting firms and other professionals.
The European Parliament has adopted the Corporate Sustainability Reporting Directive (CSRD), to require disclosures under the European Sustainability Reporting Standards (ESRS) (e.g., anticipated to cover a broad set of environmental, social and governance topics ranging from climate change to workers in the value chain and business conduct governance).
“The CSRD will require disclosure under a common framework of European Sustainability Reporting Standards (ESRS) which is currently under development by the European Financial Reporting Advisory Group (EFRAG). Under the new system, companies will be required to report on issues ranging from environmental sustainability and social rights to human rights and governance factors.
With the adoption of the CSRD by the EU Parliament, the proposal will move on to the Council, which is expected to adopt the proposal later this month. The rules will begin applying from the beginning of 2024 for large public-interest companies with over 500 employees, followed by companies with more than 250 employees or €40 million in revenue in 2025, and listed SMEs in 2026.”
The following pertains to separate, prior, but recent information regarding the development of EFRAG standards:
‘The European Financial Reporting Advisory Group (EFRAG) announced the release of its initial draft of European Sustainability Reporting Standards, setting out the proposed rules and requirements for companies to report on sustainability-related impacts, opportunities and risks under the EU’s upcoming Corporate Sustainable Reporting Directive (CSRD).
EFRAG’s proposals were released as a series of exposure drafts (EDs) covering a broad set of environmental, social and governance topics ranging from climate change to workers in the value chain and business conduct governance. Companies covered by the rules would be required to provide sustainability reporting on their strategies and business models, governance and organization, materiality assessments of sustainability impacts, opportunities and risks, as well as policies, targets, action plans and performance.”
Thank you for viewing and reading. Please pass this along to other people who would be interested as it is through collaboration and sharing that great things and success occur more quickly.
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Best to you,
David Tate, Esq. (and inactive CPA)
- Business litigation and disputes – business, breach of contract/commercial, co-owners, shareholders, investors, founders, workplace and employment, environmental, D&O, governance, boards and committees.
- Trust, estate and probate court litigation and disputes – trust, estate, probate, elder and dependent abuse, conservatorship, POA, real property, mental health and care, mental capacity, undue influence, conflicts of interest, and contentious administrations.
- Governance, boards, audit and governance committees, investigations, auditing, ESG, etc.
- Mediator and facilitating dispute resolution:
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- Business, breach of contract/commercial, owner, shareholder, investor, trade secret, etc.
- D&O, board, audit and governance committee, accountant and CPA related.
- Other: workplace and employment, environmental.
Remember, every case and situation is different. It is important to obtain and evaluate all of the evidence that is available, and to apply that evidence to the applicable standards and laws. You do need to consult with an attorney and other professionals about your particular situation. This post is not a solicitation for legal or other services inside of or outside of California, and, of course, this post only is a summary of information that changes from time to time, and does not apply to any particular situation or to your specific situation. So . . . you cannot rely on this post for your situation or as legal or other professional advice or representation, or as or for my opinions and views on the subject matter.
Also note – sometimes I include links to or comments about materials from other organizations or people – if I do so, it is because I believe that the materials are worthwhile reading or viewing; however, that doesn’t mean that I don’t or might not have a different view about some or even all of the subject matter or materials, or that I necessarily agree with, or agree with everything about or relating to, that organization or person, or those materials or the subject matter.
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David Tate, Esq. (and inactive California CPA) – practicing only as an attorney in California.