- Companies must prepare now for CSRD sustainability reporting requirements, with reports due in 2026
- Develop a clear strategy for handling CSRD's complex consolidated reporting to ensure smooth compliance
- Embracing CSRD reporting gives access to sustainable investments and financing
Sustainability reporting for aviation lessors - key takeaways
Apr 25, 2024
KEY TAKEAWAYS:
Lawyers from our Irish law Asset Finance practice recently hosted a lunch and learn event on sustainability reporting and its impact for those working in the aviation leasing space.
Partners Donna Ager, Matt Hedigan, Killian McSharry & Of Counsel Caitlin Friel spoke on topics such as;
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- Introduction to Sustainability Regulations for Aircraft Lessors;
- Sustainability Reporting – Who, What & When;
- D&O Duties & Enforcement; and
- Sustainability Reporting in Practice - What to Expect in Documents.
- The EU’s Corporate Sustainability Reporting Directive (the “CSRD”), the US SEC’s Climate-Related Disclosures, and the ISSB standards have become the leading frameworks for climate-related disclosures across the globe
- Enactment of CSRD in Ireland is expected on or before 6 July 2024 and will likely be in the form of an amendment to the Companies Act 2014
- Companies with balance sheets over EUR25m and net turnover in excess of EUR50m in-scope for CSRD sustainability reporting for FY 2025 with reports to be published 2026
- CSRD rules related to consolidated reporting are complex so it is important for companies to prepare a group strategy and action plan to implement sustainability reporting
- Leasing companies coming in-scope for FY 2025 should begin to focus on their approach to materiality assessments and accessing data from relevant stakeholders in the value-chain
- Reporting under CSRD does not require companies to meet certain minimal environmental or social standards, but it is intended to drive better corporate behaviour
- Officers and directors should remind themselves of their fiduciary and legal obligations under the Companies Act 2014 which are expected to apply to CSRD
- The transition to a CSRD compliant operating environment will be a significant challenge for leasing companies but also a real opportunity to show leadership in sustainability
- Embracing CSRD reporting will enhance access to the growing number of investment and financing products aimed at pursuing sustainability objectives
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Matt Hedigan
Partner/Ireland
