Sou Pressure from new trade balances, including the new deal from the United States, the European Commission presented, on February 26, the “Omnibus” complex, which brings together reforms aimed at the main ESG (Environment, Social and Governance) regulations. This includes the CSRD directive (” Corporate Sustainability Reporting Directive ») adopted in 2022.
However, this “omnibus” set plans to revise Europe's ambitions in this essential area. A paradox when we remember that this CSRD is inspired by the strengthening of regulations on financial reporting came … from the United States, in particular the Sarbanes-Oxley law, known as “SOX”, of 2002, imposed before the subprimes crisis after the scandals ENRON (Disted Disted) and Worldcom (Declaration of fictitious income). Their impact on the US economy had had such a repercussions that the American legislator had been forced to intervene through the establishment of this SOX law imposing financial transparency standards, the obligation of strict controls within companies in order to prevent possible deviations.
The CSRD directive can be considered as an emanation of the principles of financial transparency introduced by the Sarbanes-Oxley law, but applied to environmental, social and governance areas. The largest European companies must now ensure transparent communication concerning their extra-financial data. It is expected that the obligations will apply to the smallest structures, according to a schedule spread over time.
When China stands out
As with the SOX law, the objective for companies is to ensure the confidence of their stakeholders (scholarship, investors, employees, customers, etc.), but this time on extra-financial subjects. The CSRD requires companies the obligation to account for the impact of their activity on climate and biodiversity, as well as on human rights subjects, but also the impact of environmental and social disturbances on their operational and financial health. It plans to prevent greenwashing by requiring audited extra-financial reports, in the same way that SOX law aimed to avoid the “Financewashing”.
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Source: Lemonde