The Corporate Sustainability Reporting Directive (CSRD) is a new EU directive that aims to improve the quality and consistency of sustainability reporting across the EU. The CSRD will replace the existing Non-Financial Reporting Directive (NFRD) and expand the scope of reporting requirements to include more companies.

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Under the CSRD, companies will be required to report on a range of sustainability issues, including environmental, social, and governance (ESG) factors. The reporting requirements will be more detailed and standardized than under the NFRD, and companies will be required to report on a wider range of ESG issues.
The objectives of the CSRD are to improve the quality and comparability of sustainability reporting, increase transparency and accountability, and provide investors and other stakeholders with better information on companies' sustainability performance.

The EU Taxonomy is a classification system for environmentally sustainable economic activities. The EU Taxonomy aims to provide businesses with a common language for sustainable finance and help investors identify sustainable investment opportunities.

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The EU Taxonomy will require companies to report on their alignment with the taxonomy, which means that they will need to identify which of their activities are environmentally sustainable and report on their progress towards meeting the taxonomy's criteria. This will require companies to have a more detailed understanding of their environmental impact and take steps to reduce it.

The criteria for environmentally sustainable economic activities under the EU Taxonomy are based on six environmental objectives: climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems.

The “Lieferkettengesetzgebung”, is a new law in Germany that requires companies to report on their supply chain due diligence efforts and take steps to prevent human rights abuses and environmental harm in their supply chains.

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Under the Lieferkettengesetzgebung, companies will be required to identify and address potential risks and challenges in their supply chains and to report on their due diligence efforts. This will require companies to have a more detailed understanding of their supply chains and take steps to ensure that they are transparent and free from human rights abuses and environmental damages.

The importance of compliance with the Lieferkettengesetzgebung cannot be overstated, as failure to comply can result in significant reputational and financial risks for companies. Companies will need to develop strategies for compliance with the law, which may include conducting due diligence assessments, engaging with suppliers, and implementing monitoring and reporting systems.

1. Disclosure of information on five reporting areas: Business model, concepts and due diligence processes, results of these concepts, risks and their management, and key performance indicators.
2. Disclosure of information on environmental factors such as climate, air, soil, water and biodiversity and related interdependencies.
3. Disclosure of information on the business strategy and resilience of the business model and strategy in relation to sustainability risks.
4. Disclosure of any plans to ensure compatibility of the business model and strategy with the transition to a sustainable economy and with the goals of limiting global warming to 1.5°C with no or limited overshoot, in line with the Paris Agreement, and achieving climate neutrality by 2050.
5. Verification of sustainability reporting by independent auditors.

1. Companies with more than 500 employees and a global annual net turnover of €150 million or more must comply with due diligence obligations.
2. Companies with more than 250 employees and an annual turnover of €40 million or more must comply with due diligence requirements if they generate at least €20 million of their turnover in a high-risk sector.
3. Companies from third countries must comply with due diligence requirements if they either have more than €150 million in annual net turnover in the EU or €40-150 million in annual net turnover in the EU and at least €20 million of their global turnover in a high-risk sector.
4. Companies must identify, take preventive and remedial action and report on human rights and certain environmental risks in their value chains.
5. Companies must do what is appropriate in light of the severity of the risk and their individual capacity to influence it.

1. Large companies with more than 500 employees must publish key performance indicators annually.
2. A complete list of environmental targets must be developed.
3. Criteria for environmentally sustainable business activities must be regularly adjusted.
4. Capital flows must be channelled towards sustainable investments.
5. Technical assessment criteria for different economic activities must be established.