Missed our recent webinar on CSRD transposition in Europe? No worries! Access the recording and slides now.
Check our latest material on how institutes across Europe are helping auditors prepare for CSRD requirements.
The President of the European Parliament (EP) and political groups have scheduled the hearings for each Commissioner-Designate (CD) to evaluate their profile. The hearings will take place from 4 to 12 November – see the detailed schedule for details. Also, the EP’s Committees have prepared written questions for CDs, who are expected to reply by 22 October. These questionnaires are tailored to each portfolio and aim to scrutinise CDs’ action plan better. Below, we highlight some of the questions for CDs handling sustainability-related files:
The European Commission (EC) has initiated infringement procedures against the following Member States (MS): Belgium, the Czech Republic, Germany, Estonia, Greece, Spain, Cyprus, Latvia, Luxembourg, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, and Finland. These MS failed to fully transpose the Corporate Sustainability Reporting Directive (CSRD) into their national laws by the deadline set for 6 July 2024. The notified countries must respond within two months and complete the CSRD transposition. The EC may issue a reasoned opinion should MS’ response be unsatisfactory.
The Environment, Public Health, and Food Safety (ENVI) Committee adopted a motion for a resolution on a new collective goal on climate finance for the post-2025 period ahead of United Nations (UN) Climate Change Conference (COP29).
The resolution highlights the need for further global efforts to combat pollution and reduce emissions. MEPs encourage all countries to phase out fossil fuel subsidies redirecting these resources to climate action. They also call on the EC to further assist other countries in introducing or improving carbon pricing mechanisms drawing from the EU’s emissions trading system and the carbon border adjustment mechanisms.
The EP will vote on the resolution at the plenary in November 2024.
The Council adopted its conclusions for COP29, highlighting the potential of transitioning to a new green economic model that benefits society while maintaining economic competitiveness. The conclusions emphasise the need for a comprehensive and transformative approach to design a global financial framework, where public and private sources are mutually supportive.
The Council reaffirmed the EU’s commitment to fully implement the ‘Fit for 55’ package, aiming to reduce emissions by 55% by 2030. Additionally, it underscored the need for a stable, predictable policy environment to provide clarity for investors, businesses, and citizens.
In this context, the Council stressed the importance of mobilising the private sector on a large scale through a credible policy framework that addresses market failures and boosts investment in climate action.
The Council of the EU agreed on its position on the EC’s proposal to postpone the EU deforestation regulation application date by 12 months. The reason for this targeted amendment is that the regulation lacked key elements like guidance for companies applying the rules.
Postponing the application date will allow third countries, MS, and practitioners to prepare for their due diligence obligations, including identifying supply chain risks, monitoring, and reporting.
The Council agreed on the following application dates:
As next steps, the Council will inform the EP about its position ahead of the EP vote on the matter.
The European Securities and Markets Authority (ESMA) published its 2025 Annual Work Programme (AWP). The programme reaffirms ESMA’s commitment to ensuring resilient, transparent, and sustainable financial markets across Europe. ESMA plans to, amongst other:
The Economic and Monetary Affairs (ECON) Committee held a hearing with the European Supervisory Authorities (ESAs) to exchange views on their past and ongoing activities. Ms Verena Ross, ESMA Chairperson, emphasised the critical role of addressing greenwashing by clarifying sustainability statements. Also, Ms Ross underlined the importance of preserving investors’ trust in sustainable investment opportunities to promote a sustainable economy.
The Committee of European Audit Oversight Bodies (CEAOB) has issued guidelines for limited assurance engagements on sustainability reporting. These guidelines are meant to facilitate a common understanding of the limited assurance engagement requirements introduced by the CSRD. They cover key aspects of the procedures in such engagements, to facilitate the harmonisation of sustainability assurance across the EU.
The proposed guidelines are non-binding and do not override national pronouncements that are in force in EU MS. However, national competent authorities may recommend or require the use of the guidelines.
The International Audit and Assurance Standards Board (IAASB) approved its International Standard on Sustainability Assurance (ISSA) 5000. ISSA 5000 is an overarching standard for assurance on sustainability reporting that is:
The final text of the standard will be submitted for the certification by the Public Interest Oversight Board (PIOB). Upon PIOB’s approval, which is expected before the end of 2024, the IAASB will publish the final standard along with additional guidance and application materials.
The Institute of Chartered Accountants in Ireland published the Audit Regulations and guidance introducing the institute’s regulatory framework for the authorisation and oversights of firms and individuals providing sustainability reporting assurance under the CSRD.
H2A (French regulatory authority for assurance practitioners) issued a second edition of national guidance for sustainability reporting assurance. These guidelines describe the work effort and the conclusions that assurance practitioners will express. The guidelines update the technical opinion issued in June 2023 as well as takes into account the recently published CEAOB guidelines.
ESMA
Sustainable Finance – Implementation timeline for SFDR | TR | CSRD | BMR | EuGBR
Joint Initiative
Open letter to Commissioner-Designates: the EU needs an ambitious investment plan
European Commission
Emissions trading system (ETS) Monitoring and Reporting Regulation amendment in response to the ETS revision
Council
Transport, Telecommunications and Energy Council (Energy), 15 October 2024
PwC
PwC warns companies of lagging behind in implementing sustainability rules
Harvard Law School Forum on Corporate Governance
ESG Shareholder Resolutions
WWF
Corporate nature targets: ensuring the credibility of EU-Regulated commitments
12 November
Shaping the future of sustainability assurance engagements – Accountancy Europe & IFAC
15 November
Supporting companies in applying the European sustainability reporting standards – European Commission
19 November
Implementing the CSRD and ESRS: key findings and reporting best practices in 2024 – Frank Bold
