Sustainability Reporting Jurisdictional Update
Sustainability Reporting Jurisdictional Update
Q2 2024
As global momentum builds for standardised and mandatory disclosure of environmental, social and governance (ESG) information, the International Sustainability Standards Board (ISSB) and various regulatory bodies are taking decisive steps to integrate sustainability reporting frameworks into legal frameworks throughout different jurisdictions. This shift reflects an increasing recognition of the importance of transparency and accountability in corporate environments.
For example, in the European Union, the Corporate Sustainability Due Diligence Directive (CSDDD) has been recently approved, which mandates that companies assess and mitigate their impacts on human rights and the environment. This directive will apply both to EU and non-EU companies meeting specific thresholds, requiring them to adopt due diligence processes and transition plans compatible with the Paris Agreement. Additionally, the European Parliament has postponed the adoption of sector-specific European Sustainability Reporting Standards (ESRS) until June 2026, affecting the reporting timelines for companies but not altering the existing requirements under the Corporate Sustainability Reporting Directive (CSRD).
Meanwhile, in the US, California has implemented new laws requiring public and private entities to disclose climate-related data, including greenhouse gas emissions. However, the implementation of these laws may be delayed due to ongoing legislative discussions and proposed amendments. Furthermore, several states are enacting innovative climate liability laws which will compel oil and gas companies to contribute to climate cost recovery programmes, specifically targeting firms responsible for over 1 billion metric tons of GHG emissions since 1995. This trend indicates a proactive approach by states to address climate change while awaiting federal regulations.
For a more detailed overview of the most recent updates in sustainability reporting and regulatory requirements globally, please see our Sustainability Reporting Jurisdictional Update, which provides a detailed explanation of the current ESG landscape and future implications of these developments.
As global momentum builds for standardised and mandatory disclosure of environmental, social and governance (ESG) information, the International Sustainability Standards Board (ISSB) and various regulatory bodies are taking decisive steps to integrate sustainability reporting frameworks into legal frameworks throughout different jurisdictions. This shift reflects an increasing recognition of the importance of transparency and accountability in corporate environments.
For example, in the European Union, the Corporate Sustainability Due Diligence Directive (CSDDD) has been recently approved, which mandates that companies assess and mitigate their impacts on human rights and the environment. This directive will apply both to EU and non-EU companies meeting specific thresholds, requiring them to adopt due diligence processes and transition plans compatible with the Paris Agreement. Additionally, the European Parliament has postponed the adoption of sector-specific European Sustainability Reporting Standards (ESRS) until June 2026, affecting the reporting timelines for companies but not altering the existing requirements under the Corporate Sustainability Reporting Directive (CSRD).
Meanwhile, in the US, California has implemented new laws requiring public and private entities to disclose climate-related data, including greenhouse gas emissions. However, the implementation of these laws may be delayed due to ongoing legislative discussions and proposed amendments. Furthermore, several states are enacting innovative climate liability laws which will compel oil and gas companies to contribute to climate cost recovery programmes, specifically targeting firms responsible for over 1 billion metric tons of GHG emissions since 1995. This trend indicates a proactive approach by states to address climate change while awaiting federal regulations.
For a more detailed overview of the most recent updates in sustainability reporting and regulatory requirements globally, please see our Sustainability Reporting Jurisdictional Update, which provides a detailed explanation of the current ESG landscape and future implications of these developments.
