16 May 2022
Sustainability Disclosure: Is there hope for the EU and the US standards to converge?
Ingmar Juergens, CEO & Co-founder, Climate & Company
Sustainability Disclosure Regulations: A lot is happening SEC1 (USA) and CSRD2 (EU) proposals 3 open consultations
A chance for international alignment? 1 Securities
and Exchange Commission 2 Corporate Social Responsibility Directive
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How well aligned are the current proposals?
CSRD Proposal
SEC Proposal
• All sustainability dimensions: environmental, social, governance
• Climate-related risks, events, transition
• Beyond climate
• Detail for climate-related targets/ commitments • Emissions scope 1-3
• All large and listed companies in the EU
• US-listed firms
• Simplified reporting for SMEs
• Lower requirements for smaller listed firms
• Phase-in depending on company size
• Phase-in depending on companysize 17.05.2022
3
How well aligned are the current proposals?
CSRD Proposal
SEC Proposal
• Double materiality
• Financial materiality
• Limited assurance
• Limited assurance Scope 1 and 2 emissions
• Objective: similar level of assurance than for financial information
• After transition period: reasonable assurance
17.05.2022
4
How well aligned are the current proposals?
CSRD Proposal
SEC Proposal
• European Sustainability Reporting Standard (ESRS)
• Based on TCFD and existing U.S. reporting requirements
• Annual report
• Annual report and registration statements
• Digital tagging
• Digital tagging
17.05.2022
5
What about the rest of world?
Worldwide trend towards mandatory disclosure
Most jurisdictions outside Europe: financial materiality China signals future adoption of ISSB standards G20 supports development of global baseline by ISSB
17.05.2022
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Further Insights in our Publications
You can find these and more publications on our website: www.climateandcompany.org 17.05.2022
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Thank you for your attention!
IF WE ARE SERIOUS ABOUT SUSTAINABLE DEVELOPMENT, WE NEED TO GET THE FINANCING RIGHT.
The Sustainable Finance Think Tank
climateandcompany.org hello@climcom.org