Sustainabilty Regulations – Subscription

Wishlist Share
Share Course
Page Link
Share On Social Media

About Course

Global Sustainability Regulations

Brief overview of each sustainability regulation globally:

  1. EU Taxonomy (Corporate Sustainability Reporting Directive)
  2. CSRD (Corporate Sustainability Reporting Directive)
  3. ESRS (Environmental, Social, and Governance Reporting Standard)
  4. CSDDD (Corporate Social and Environmental Disclosure Database)
  5. SFDR (Sustainable Finance Disclosure Regulation)
  6. ISSB (International Sustainability Standards Board)
  7. IFRS (International Financial Reporting Standards)
  8. DRSAC (Data and Reporting Standards for Agricultural Commodities)
  9. GSCDD (Global Standards Collaboration for Digital Disclosure)
  10. SASB (Sustainability Accounting Standards Board)
  11. BRSR (Business Responsibility and Sustainability Reporting)

What Will You Learn?

  • You will learn about each sustainability regulation requirement.
  • EU Taxonomy: The EU Taxonomy is a classification system that defines which economic activities can be considered environmentally sustainable.
  • CSRD (Corporate Sustainability Reporting Directive): A proposed EU directive aimed at harmonizing sustainability reporting requirements for companies operating in the European Union.
  • ESRS (Environmental, Social, and Governance Reporting Standard): A standard developed by the Sustainability Accounting Standards Board (SASB) for reporting on environmental, social, and governance (ESG) factors.
  • CSDDD (Corporate Social and Environmental Disclosure Database): A database used to collect and analyze corporate social and environmental disclosure data for research and analysis purposes.
  • TCFD (Task Force on Climate-related Financial Disclosures): An initiative established by the Financial Stability Board (FSB) to develop voluntary climate-related financial disclosure recommendations for companies.
  • SFDR (Sustainable Finance Disclosure Regulation): EU regulation aimed at improving transparency on how financial market participants integrate sustainability risks and considerations into their investment decisions.
  • ISSB (International Sustainability Standards Board): A proposed global sustainability standards board under the International Financial Reporting Standards (IFRS) Foundation, aimed at developing a comprehensive set of sustainability reporting standards.
  • IFRS (International Financial Reporting Standards): A set of accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of financial statements by companies globally.
  • DRSAC (Data and Reporting Standards for Agricultural Commodities): A set of standards developed by the Climate Disclosure Standards Board (CDSB) to guide companies in reporting environmental information related to agricultural commodities.
  • GSCDD (Global Standards Collaboration for Digital Disclosure): A collaboration among standard-setting organizations to develop a common digital reporting framework for corporate disclosures.
  • SASB (Sustainability Accounting Standards Board): An organization that develops sustainability accounting standards for companies to disclose material ESG information to investors.
  • BRSR (Business Responsibility and Sustainability Reporting): A framework developed by the Indian Ministry of Corporate Affairs for companies to report on their sustainability performance and impact.
  • Each of these initiatives or standards plays a role in promoting transparency, accountability, and disclosure of sustainability-related information by companies, investors, and other stakeholders.

Course Content

EU Taxonomy
The EU Taxonomy is a classification system that defines which economic activities can be considered environmentally sustainable. The Purpose is: To direct investments towards activities that contribute to the EU's Green Deal goals, particularly achieving climate neutrality by 2050. To create a common language for "sustainability" in the financial sector, reducing greenwashing and improving transparency. It covers six environmental objectives: climate change mitigation, climate change adaptation, circular economy, pollution prevention and control, protection and sustainable management of water and marine resources, and protection and restoration of biodiversity and ecosystems. It defines criteria for each objective through "Technical Screening Criteria" (TSCs). Activities must meet these criteria to be considered sustainable. Two main categories: Green activities: Clearly contribute to at least one environmental objective and do not significantly harm any other objective. Transitional activities: Do not yet meet the Green criteria but are necessary for the transition to a sustainable economy and have a plan to become Green in the future. Applies to a wide range of economic activities, including energy, manufacturing, transportation, construction, and agriculture.

  • Taxonomy Timeline
  • Introduction:
  • Obligations
  • Industries affected
  • Penalties / How are companies impacted if not complying?
  • How to comply?

Corporate Sustainability Reporting Directive (CSRD)/ European Sustainability Reporting Standards (ESRS)
The CSRD and ESRS are a major step forward in EU sustainability efforts, aiming to enhance transparency and accountability on corporate environmental and social impacts. CSRD: Objective: Requires large EU companies and listed SMEs to report on their sustainability performance, considering both their impacts and risks. Who's impacted?: Applies to: EU companies exceeding €350 million turnover All EU and non-EU listed companies in the EU Third-country companies exceeding €150 million turnover and operating in the EU Reporting requirements: Focus on: Double materiality perspective: considering impacts on sustainability objectives and financial risks from sustainability issues. Governance, strategy, and risk management related to sustainability. Quantitative metrics and targets on environmental and social aspects. Value chain impacts. Timeline: Phased implementation: December 2023: Large companies report for 2024 financials. December 2025: Listed SMEs report for 2026 financials. December 2026: Other large companies report for 2027 financials. ESRS: Objective: Provide detailed, harmonized reporting standards for companies applying the CSRD. Content: Includes 12 standards across: 1. Cross-cutting aspects like governance and reporting principles. 2. Environmental objectives like climate change mitigation, pollution control, and resource use. 3. Social objectives like labor practices, human rights, and gender equality. Development: Set in two phases: Phase 1: Six standards adopted in July 2023, applicable from 2024 for large companies. Phase 2: Six additional standards in development, expected by summer 2024. Overall Impact: Increased transparency: Enables stakeholders to better understand company performance on sustainability issues. Improved sustainability management: Encourages companies to integrate sustainability into their core strategies and risk management. Investment decision-making: Provides reliable information for investors to assess greenwashing and identify sustainable investments. Global influence: Sets a high standard for corporate sustainability reporting, potentially influencing countries beyond the EU.

Corporate Sustainability Due Diligence Directive (CSDDD)
The Corporate Sustainability Due Diligence Directive (CSDDD) is a proposed piece of EU legislation aiming to make companies accountable for the environmental and social impacts of their activities, not just within their own operations but also throughout their entire value chains. Objectives: 1. Protect human rights and the environment: Prevent and mitigate negative impacts of corporate activities (e.g., pollution, child labor, discrimination) on people and the planet. 2. Increase corporate accountability: Companies must proactively identify, address, and report on potential and actual sustainability risks. 3. Promote sustainable practices: Encourage companies to integrate sustainability considerations into their core business strategies and decision-making. Functions of Corporate Sustainability Due Diligence Directive Due diligence obligation: Companies must conduct due diligence on their own operations, subsidiaries, and business relationships regarding environmental and social impacts. Risk assessment and management: Companies must identify, assess, prevent, mitigate, and account for potential and actual negative impacts. Action plans and reporting: Companies must develop action plans to address identified risks and publicly report on their due diligence efforts and outcomes. Scope: Applies to large EU companies and non-EU companies operating within the EU exceeding certain turnover thresholds.

Business Responsibility and Sustainability Reporting (BRSR)
The Securities and Exchange Board of India (SEBI), in its continued efforts to enhance disclosures on ESG standards, introduced new requirements for sustainability reporting by listed companies. The new reporting format named, Business Responsibility and Sustainability Report (BRSR), aims to establish links between the financial results of a business with its ESG performance. This can make it easier for regulators and investors, and allied stakeholders to obtain a fair estimate of overall business stability, growth and sustainability (hitherto based on financial disclosures alone). SEBI has mandated that the BRSR will be applicable to the top 1,000 listed entities (by market capitalisation) for reporting on a voluntary basis for FY2021–22 and on a mandatory basis from FY2022–23.

Task Force on Climate-Related Financial Disclosures (TCFD)
The Task Force on Climate-Related Financial Disclosures (TCFD) is a global initiative that provides recommendations for companies to disclose climate-related financial risks and opportunities. Mission: To develop a framework for consistent and comparable climate-related disclosures through mainstream financial filings. Recommendations: Governance: Disclose how the board and management oversee climate-related risks and opportunities. Strategy: Describe how climate change impacts the company's business strategy and financial planning. Risk Management: Explain how the company identifies, assesses, and manages climate-related risks. Metrics and Targets: Disclose relevant metrics and targets to track progress in managing climate-related risks and opportunities. Impact: Increased transparency: TCFD recommendations help investors understand the potential financial impacts of climate change on companies. Improved risk management: Encourage companies to proactively identify and manage climate-related risks. Informed decision-making: Enables investors and lenders to make better-informed decisions about allocating capital. Global adoption: Widely supported by financial institutions, asset managers, and companies worldwide. Current Status: Over 3,000 organizations around the world have expressed support for the TCFD recommendations. TCFD continues to develop new guidance and resources to support companies in implementing the recommendations.

Sustainable Finance Disclosure Regulation (SFDR)
The Sustainable Finance Disclosure Regulation (SFDR) is a European regulation introduced to improve transparency in the market for sustainable investment products, to prevent greenwashing and to increase transparency around sustainability claims made by financial market participants. It imposes comprehensive sustainability disclosure requirements covering a broad range of environmental, social & governance (ESG) metrics at both entity- and product-level. The main provisions of the SFDR have been applicable as of 10 March 2021, with a statutory instrument known as a Delegated Act containing more precise disclosure standards yet to be adopted by the European Commission. The SFDR is a fundamental pillar of the EU Sustainable Finance agenda, having been introduced by the European Commission as a core part of its 2018 Sustainable Finance Action Plan, which also include the Taxonomy Regulation and the Low Carbon Benchmarks Regulation.

International Sustainability Standards Board (ISSB)
The International Sustainability Standards Board (ISSB) is an independent, private-sector body that develops and approves IFRS Sustainability Disclosure Standards (IFRS SDS). The ISSB operates under the oversight of the IFRS Foundation. The ISSB was formed in 2021 following two consultations on the demand for global sustainability standards and what role the Foundation might play in the development of such standards and on proposed amendments to the IFRS Foundation Constitution that would enable the creation of a new sustainability standards board under the governance of the Foundation. The ISSB will normally comprise 14 members, some of which can be part-time members. The main qualifications for membership of the ISSB are professional competence and relevant professional experience. The board will comprise three members from the Asia-Oceania region, three members from Europe, three members from the Americas, one member from Africa, and four members appointed from any area. The ISSB has one Chair and currently one Vice-Chair (the IFRS Foundation’s Constitution allows for up to two ISSB Vice-Chairs). The ISSB's role Under the IFRS Foundation Constitution, the ISSB has complete responsibility for all sustainability-related technical matters of the IFRS Foundation including: full discretion in developing and pursuing its technical agenda, subject to certain consultation requirements with the Trustees and the public the preparation and issuing of SDSs and exposure drafts, following the due process stipulated in the Constitution.

International Financial Reporting Standards (IFRS)
International Financial Reporting Standards (IFRS) are a set of accounting rules for the financial statements of public companies that are intended to make them consistent, transparent, and easily comparable around the world.

Social, Environmental, and Climate Risk Document (DRSAC)
The Documento de Riscos Social, Ambiental e Climático (DRSAC) was created by the Central Bank of Brazil to support its sustainability agenda, based on the Taskforce on Climate-Related Financial Disclosures (TCFD). There are also similarities between the DRSAC and the EU’s EBA Pillar3 regulation, which is based on TCFD requirements. The use of categorization of exposures by industry — the National Classification of Economic Activities (CNAE) for DRSAC, the NACE (Nomenclature of Economic Activities) for Pillar 3, and even the Global Industry Classification Standard (GICS) for the International Sustainability Standards Board’s (ISSB) climate-related disclosures — is another example of similarities between the DRSAC and other global frameworks.

German Supply Chain Due Diligence Act (GSCDD)
The new German "Act on Corporate Due Diligence to Prevent Human Rights Violations in Supply Chains" (Supply Chain Due Diligence Act – German: Lieferkettensorgfalts­pflichtengesetz, short: “LkSG”), more commonly known as the German Supply Chain Act, imposes extensive new obligations on companies with regard to human rights along the supply chain, the so-called "due diligence obligations". The LkSG is effective as of 1 January 2023, and creates an urgent need for businesses. In order to meet the responsibility to protect human rights all along the supply chain, companies need to implement extensive compliance measures.

Earn a Certificate & Up-skill yourslef

Add this certificate to your CV to demonstrate your skills & increase your chances of getting noticed & promoted.

selected template

Student Ratings & Reviews

No Review Yet
No Review Yet

Learning often happens in classrooms
but it doesn’t have to.

+91 9740324666
info@globalpccs.com