How the EU sustainability regs relate to each other

Here’s a note from Andreas Rasche:

The new EU sustainability regulations – “It’s a system!” CSRD, CSDDD, SFDR and the EU Taxonomy were not designed as standalone regulations/directives, but they interrelate in various ways. Too often, this is neglected when people complain about the bureaucratic burden that all these new regulations bring. There is a good reason for each of them…

This chart shows some (yet not all) ways in which these regulations relate to each other. Considering these complementarities is important to:

– reduce workload and enhance efficiency (e.g., firms in scope for CSRD and CSDDD will not need to double report on climate plans),

– to align internal decision-making (as different departments/units may have the lead on different regulations), and maybe most importantly

– to form a common understanding, language and mindset around implementation.

The last point matters a lot, as you can approach each of the four regulations from a pure compliance angle, but you can also build a corporate mindset that acknowledges what is at the heart of this system: strategic decision-making and long-term value creation. It’s a choice…