Scope: Which entities are in scope

On February 24, the Council of the European Union officially adopted the ‘Omnibus’ directive. Key aspects of the ‘Omnibus’ directive include changes to the scope of entities subject to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) as well as guidance on simplified European Sustainability Reporting Standards (ESRS), sector guidance, assurance standards, and value chain reporting. 

This approval and other recent milestones in the EU legislative process and standard setting efforts are shaping the next phase of sustainability reporting. In this episode, we provide an update on the Omnibus package and discuss the latest developments in the proposed revisions to the ESRS. We explore what is expected to be finalized soon, where there is still opportunity for change, and the key implications for companies preparing for upcoming reporting requirements. 

In this episode, we discuss:

• 2:48 – Updated scope and timing requirements for EU and non-EU entities
• 11:14 – Streamlined general disclosure requirements and cross-cutting changes
• 14:31 – Changes to double materiality and flexibility in the assessment process
• 17:34 – Clarifications on mitigation, remediation, and assessing impacts
• 22:54 – Reporting boundary updates, including the impact of leased assets and GHG emissions
• 27:51 – New reliefs: reasonable and supportable information, acquisitions and disposals, and metric flexibility
• 36:07 – What’s next in the European Commission process and how companies can prepare now

Looking for more on sustainability reporting?

• Read PwC’s Sustainability reporting guide
• Check out other episodes in our sustainability reporting podcast series

About our guest

Diana Stoltzfus is a sustainability partner in the Professional Practice Group within the National Office. Diana helps to shape our firm’s perspective on regulatory matters, responses to rulemakings, and policy development and implementation related to significant new rules and regulations. Diana was previously the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) of the Professional Practice Group in the OCA at the SEC. She focused on providing guidance related to auditing, independence, and internal controls.

About our host

Heather Horn is the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com. 

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