Here are four headline “Key Takeaways” about the draft sustainability reporting standards for non-EU parent companies from the European Financial Reporting Advisory Group (EFRAG), as pulled from this more detailed Cooley Alert penned by Emma Bichet and Jack Eastwood:
- The Draft NESRS cover the same topics as the First Set of ESRS.
- The Draft NESRS only focus on impacts – not financial risks and opportunities.
- The biggest area of divergence between the First Set of ESRS and the Draft NESRS is the range of business and value chain operations (both upstream and downstream) that must be covered by the report.
- There is a very limited availability of phase-ins for those first in scope, making early preparation even more critical. The use of almost all phase-ins – e.g., on gross Scope 3 greenhouse gas emissions and value chain information – is limited to those non-EU companies who first come into scope of the CSRD after January 1, 2029.
By the way, here’s a 2-minute video about having a global strategic approach to ESG – and here’s another 2-minute video about adopting targets and goals – featuring Beth Sasfai and Michael Mencher…
Authored by
Broc Romanek