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Corporate environmental reporting Compatibility of Due Diligence laws and the European Sustainability Reporting Standards (ESRS)

The Corporate Sustainability Reporting Directive (CSRD) will require large companies to create transparency about their environmental and social impacts, including those in the supply chain. The centerpiece of the Directive are European Sustainability Reporting Standards (ESRS) which formulate specific disclosure requirements for environmental, social and governance matters. New laws on corporate supply chain due diligence, such as the German Supply Chain Act (LkSG) or the European Corporate Sustainability Due Diligence Directive (CSDDD), oblige companies to address environmental damage and human rights violations in their supply chains and report on the outcome. 

In the context of the current debate on easing reporting burdens for companies, this factsheet examines the compatibility of the environmental reporting requirements from the CSRD with those of selected due diligence laws to identify synergies and gaps. In addition to the company-related due diligence laws CSDDD and LkSG, two product-related due diligence laws, the EU Regulation on deforestation-free products and the EU Regulation on batteries and waste batteries, are considered.