French Transposition and Key Learnings:
France became the first European country to transpose the CSRD, bringing about key changes in applicability, sanctions, reporting for subsidiaries, publication requirements, and audit procedures.
1️⃣ Applicability: SAS entities are now subject to CSRD, increasing the number of companies under CSRD in France from 2,500 to 6,000 and 50,000 in the European Union.
2️⃣ Sanctions: Non-compliance may result in fines, injunctions, and restrictions on public procurement.
3️⃣Subsidiaries / Parent companies: Detailed provisions for subsidiaries controlled by EU and non-EU parent companies.
4️⃣ Publication: CSRD information must be included in the management report, with exceptions for sensitive business information.
5️⃣ Audit: Sustainability information certified by accredited auditors; H3C transforms into H2A for enhanced oversight.
With the French transposition of CSRD, the audit landscape undergoes transformative changes, welcoming new auditors and ensuring robust oversight. As other EU countries have until June 2024 to follow suit, these updates signify a comprehensive framework for sustainable reporting, enhancing transparency, and standardizing practices across the European business landscape.