Corporate environmental reporting : compatibility of due diligence laws and the European Sustainability Reporting Standards (ESRS) / publisher: German Environment Agency ; authors/ institutions: Patrick Schöpflin (Institute for Ecological Economy Research (IÖW)) ; with support of: Isabella Naujoks, Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection, Section G II 3 - Christoph Töpfer, Section I 1.4, German Environment Agency

Abstract

The Corporate Sustainability Reporting Directive (CSRD) will require large companies to create transparency about their environmental and social impacts, including those in the supply chain. New laws on corporate supply chain due diligence, such as the German Supply Chain Act (LkSG) or the planned European Corporate Sustainability Due Diligence Directive (CSDDD), oblige companies to address environmental damage and human rights violations in their supply chains and report on the outcome. In the context of the current debate on easing reporting burdens for companies, this factsheet examines the compatibility of the environmental reporting requirements from the CSRD with those of selected due diligence laws to identify synergies and gaps.