On March 15, 2024, the Committee of Permanent Representatives (COREPER) approved a compromise proposal on the Corporate Sustainability Due Diligence Directive (CSDDD) after prolonged resistance from several member states.

The CSDDD obliges companies of a certain size to comply with human rights and environmental standards along their global value chain. Compared to the provisional agreement in December 2023, there are a few defusions, particularly with regard to the scope of application.

The European Financial Reporting Advisory Group (EFRAG) has published the first twelve questions and answers on the application of ESRS (Explanations 1/2024) on its ESRS Q&A Platform set up in October 2023.

On February 22, 2024, the International Federation of Accountants (IFAC), together with the American Institute of Certified Public Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA), published an updated study on the sustainability reporting and auditing of the world's 1,400 largest companies from 22 countries. The period under review covers the years 2019 to 2022.

The European Council and the European Parliament have reached a provisional agreement to follow the European Commission's proposal and postpone the adoption of the sector-specific ESRS, originally planned for June 2024, by two years to June 2026. This is intended to give companies the opportunity to concentrate on implementing the first package of cross-sector ESRS for the time being.

The International Ethics Standards Board for Accountants (IESBA) has published two consultations (Exposure Drafts, EDs) on amendments to the Code of Ethics (Code):

• Sustainability: Proposed International Ethics Standards for Sustainability Assurance (Including International Independence Standards) (IESSA) and Other Revisions to the Code Relating to Sustainability Assurance and Reporting,
• Consultation with Experts: Using the Work of an External Expert.

Both consultations were closely coordinated with the International Auditing and Assurance Board (IAASB). Comments are requested by May 10, 2024 (Sustainability) and April 30, 2024 (Experts).

On January 10, 2024, the International Federation of Accountants (IFAC) published a Sustainability & Education Literature review highlighting key aspects of education and training in sustainability reporting and assurance that will enable the global profession to meet the expectations of proper and reliable sustainability reporting.

On December 14, 2023, the Council of the European Union and the European Parliament reached a provisional political agreement on the Corporate Sustainability Due Diligence Directive (CSDDD) in the course of trilogue negotiations. The provisional political agreement will be formally adopted by the Parliament and Council in the coming weeks.

The European Supply Chain Directive will initially affect EU companies with more than 500 employees and a global net annual turnover of at least 150 million euros, as well as companies in certain sectors. Three years after the directive comes into force, large third-country companies with net sales of at least 300 million euros in the European Union will be included. The CSDDD obliges companies to comply with human rights and environmental standards along their global value chain.

Further information can be found in the press release of the European Council and the press release of the European Parliament.