IFB Theme Leader, Professor Franzi Schrodt of the University of Nottingham, has co-authored a briefing note, Staying Green: Retaining the integrity of environmental disclosures under European corporate sustainability reporting. It is in response to the recent Omnibus proposal, and is aimed at a diverse audience that includes EU bureaucrats, interested accountants, companies, investors, and other scientists.
The key messages are -
- Leverage the best available scientific evidence to identify and mandate location-specific
information on a limited set of scientifically validated and prioritized environmental
impacts (pressures). This will enhance regulatory efficiency while ensuring the
disclosures are reliable and decision-useful. - Ground double materiality assessments in scientific evidence of key environmental topics.
This will significantly improve the transparency, reliability, and comparability of
environmental disclosures. - Ensure expert-guided streamlining of corporate sustainability legislation and regulation.
Engaging experts from environmental and sustainability sciences, law, accounting, and
other directly relevant disciplines can help reduce compliance burdens without
compromising on disclosure integrity and legislative intent. - Failing to prioritize and mandate scientifically validated disclosures in streamlining efforts
heightens the dangers of significant information gaps and unreported material
environmental impacts and risks. This undermines the reliability and usefulness of ESRS
for effective decision-making.
The full briefing is available here - Staying Green: Retaining the integrity of environmental disclosures under European corporate sustainability reporting.