PwC's accounting podcast - Audio: In the loop - What's CSRD? It's important to know

Audio: In the loop - What's CSRD? It's important to know

08/11/22 • 27 min

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US companies with operations or listed securities in Europe are likely to be affected by the European Commission's mandatory ESG reporting regulation. They extend far beyond the SEC's climate disclosure proposal. PwC explains what you need to know in this audio version of our In the loop, What's CSRD? You should already know.

In this episode, you will hear:

2:55 - Key requirements of the CSRD
6:15 - What determines if a multinational company is in the scope of the CSRD?
9:50 - What reporting standards would an in-scope company apply?
11:20 - When would companies need to start reporting under the CSRD?
12:45 - What sustainability disclosures would be required under the CSRD?
16:40 - How do the EFRAG’s proposed climate disclosure requirements differ from the SEC’s proposed climate rules?
18:55 - What information would a company be required to disclose about its value chain?
20:15 - How would materiality be determined?
21:30 - Is any relief expected for companies reporting under another framework (e.g., the SEC’s requirements)?
22:35 - Would third-party assurance be required?
24:25 - What’s next?

Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].

In this episode, you will hear:

2:55 - Key requirements of the CSRD
6:15 - What determines if a multinational company is in the scope of the CSRD?
9:50 - What reporting standards would an in-scope company apply?
11:20 - When would companies need to start reporting under the CSRD?
12:45 - What sustainability disclosures would be required under the CSRD?
16:40 - How do the EFRAG’s proposed climate disclosure requirements differ from the SEC’s proposed climate rules?
18:55 - What information would a company be required to disclose about its value chain?
20:15 - How would materiality be determined?
21:30 - Is any relief expected for companies reporting under another framework (e.g., the SEC’s requirements)?
22:35 - Would third-party assurance be required?
24:25 - What’s next?

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].

Previous Episode

ESG industry insights: Real estate

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With ESG top of mind for many companies, we’re continuing our new podcast series looking at how the current and future reporting landscape may impact individual industries. This week, guest host Casey Herman, PwC’s US ESG leader, was joined by Dan Sullivan and Randy Hoff, specialists in PwC’s Financial Markets & Real Estate practice, to discuss the strategy and reporting challenges and opportunities for real estate companies. In addition, any company that owns or rents space for its business would benefit from it.

In this episode, our guests discuss:

2:19 - Current areas of focus in financing real estate ESG initiatives
10:22 - Why the real estate industry is motivated to invest in the “E” of ESG
18:46 - Trends in the real estate industry’s comment letters on the SEC’s climate proposal
23:52 - Industry themes in ESG reporting goals
29:42 - Availability of new sustainability-focused financing instruments
33:31 - Advice for real estate businesses working through ESG challenges

Want to learn more about developments in ESG? Register for our upcoming Q3 2022 Quarterly ESG webcast, and listen to our previous podcast that provides insights into the ESG disclosures that matter to investors. Also refer to the text or audio version of our In the loop, The SEC wants me to disclose what?

Dan Sullivan is PwC’s Financial Markets & Real Estate leader. Dan has 18 years experience assisting clients with capital markets challenges driven by owning, originating, and investing in complex financial products and real estate. He helps clients navigate rapidly changing ESG demands to create innovative product and market strategies that lead the way in sustainability finance.

Randy Hoff is a Principal in PwC's Financial Markets & Real Estate team with over 20 years experience. He provides a wide range of innovative and tech-forward ESG solutions to Commercial and Industrial occupiers and investors. Randy helps clients achieve Net Zero and other emissions reduction goals through technology, advanced analytics and engineering.

Casey Herman is PwC’s US ESG Leader. Casey has over 35 years of experience leading and working on the audits of many significant, complex clients and is a member of the Edison Electric Institute's Wall Street Advisory Group, the Electric Power Research Institutes Advisory Council, and the NYU Stern Business School Center for Sustainable Business Advisory Council.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].

Next Episode

Compensation toolkit: Making sense of stock award modifications

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In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering stock-based compensation – a complex subject with a variety of accounting and reporting considerations.

In this episode, Heather Horn was joined by PwC National Office partners Jay Seliber and Ken Stoler to discuss a number of scenarios and accounting considerations related to stock-based compensation award modifications.

In this episode, you will hear them discuss:

1:22 - An overview of stock option modifications
12:20 - Four types of modifications to awards with vesting conditions
29:22 - How to think through changes to the classification of an award
37:34 - Accounting for changes to performance conditions
45:52 - Working through changes to market conditions
53:22 - Final advice for companies dealing with stock option modifications

Want to learn more? Refer to previous episodes in our Compensation toolkit series on equity or liability classification and unraveling complex vesting conditions, along with earlier podcasts on stock-based compensation including back to basics and presentation and disclosure. See also our Stock-based compensation guide. Stay tuned for more insightful episodes in the coming weeks.

Jay Seliber is a partner in PwC’s National Office. He leverages over 30 years of experience to help clients with their most complex accounting matters, particularly in the areas of mergers and acquisitions, revenue recognition, stock compensation, earnings per share, employee benefits, restructurings, impairments, and financing transactions. Jay is presently PwC's representative on the FASB's Emerging Issues Task Force.

Ken Stoler is a partner in PwC’s National Office with over 25 years of experience. Ken specializes in financial reporting and plan design issues related to equity compensation arrangements, retirement and healthcare plans, and other benefits, helping companies navigate their employee compensation issues during an IPO, spin off, acquisition, or other major transaction or event.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].