Corporate Sustainability Reporting (MRR260)

Content

The Corporate Sustainability Reporting Directive (CSRD) requires organizations to report sustainability information under the reporting framework of the European Sustainability Reporting Standards (ESRS) adopted on July 31, 2023, by the European Commission. The CSRD and ESRS entered into effect on January 1, 2024. It is estimated that over 50,000 companies will need to submit ESRS-aligned reports to European regulators. The CSRD also requires an audit assurance of the ESRS-compliant reports.

This course focuses on the ESRS framework, with particular emphasis on double materiality, which forms the foundation of sustainability reporting. In addition, the course also covers several chapters from the CSRD and the EU Taxonomy.

The course is composed of seven modules:

Module 1 introduces basic concepts of sustainability, ESG, climate change, ESG measures and rating, EU legal requirements, and the connection between CSRD, and ESRS, and other sustainability reporting standards.

Module 2 covers EU taxonomy and the measures and rating of sustainability.

Module 3 introduces the structure, scope, and extent of the ESRS, including two general requirements (ESRS 1 and ESRS 2), five environmental reporting (ESRS E1-E5), four social reporting standards (ESRS S1-S4), and one governance (ESRS G1).

Module 4 covers the assurance of sustainability reporting.

Module 5 discusses impact materiality, incorporating case studies.

Module 6 covers financial materiality, including the impact of ESG on financial position, financial performance, cash flows, access to finance,

Module 7 provides in-depth coverage of greenwashing.

Background:

The Paris COP 21 climate change agreement has prompted countries around the world to aim for carbon neutrality. In response, the European Union (EU) has proposed the ‘Fit for 55’ package – designed to reduce the EU’s greenhouse gas (GHG) emission by 55% by 2030 – and a long-term strategy targeting a climate-neutral economy by 2050. The European Green Deal launched by the EU aimed to pursue a green economy by focusing on environmental sustainability and social and governance aspects.

Firms are the units driving the green transition. A firm’s ESG reporting affects the decision-making of its stakeholders, such as investors, customers, and employees. However, companies may selectively reveal their ESG performance as a symbolic strategy to create impressive overall performance, indicating a greenwashing behavior. The European Green Deal, with sustainable finance being the primary element, may be distorted by greenwashing, leading to the implementation of the CSRD and the adoption of the ESRS.

Learning outcome

Upon successful completion of the course, the student will have acquired:

Knowledge

• Understand the EU legal requirements of sustainability reporting and the concept of sustainability and measures.
• Understand environmentally sustainable economic activities and sustainable investment defined in the EU Taxonomy.
• Earn advanced knowledge of the structure, scope, and extent of the ESRS.
• Have a deep understanding and advanced knowledge of concepts involved in ESRS - E/S/G.
• Understand the key issues related to identifying financial and impact materiality.
• Understand the assurance of sustainability reports.

Skills

• The ability to evaluate sustainable economic activities and investment according to the EU Taxonomy.
• The ability to identify the primary elements required by the ESRS and CSRD.
• The ability to evaluate financial and impact materiality.
• The ability to identify ESG reporting issues in specific corporate/sector cases.

Required prerequisite knowledge

Exam

Coursework requirements

Course teacher(s)

Course teacher:

Course coordinator:

Course teacher:

Study Program Director:

Method of work

Lectures (including guest lectures) and seminars.

The course will comprise case discussions of specific issues related to corporate sustainability reporting, in which the students will work in groups.

Open for

Course assessment

Literature