Liability and sanctions regime
The European Commission originally proposed a sanctions regime in its CSRD proposal of April 2021 that would compel EU Member States to adopt at least the following penalties in case of infringements (Article 51):
a public statement that identifies the natural or legal person responsible and the nature of the breach (name and shame);
an order that requires the natural or legal person responsible to cease being in breach and desist from being repeated;
administrative penalties. The penalties regimes to be settled by Member States shall take into account “all relevant circumstances” (gravity and duration of the breach, degree of responsibility of, the financial strengths of and the importance of profits gained or losses avoided by the natural person or legal entity responsible, the level of cooperation of the person responsible, and previous infringements).
However, the Council subsequently decided to remove this proposition. As such, the same penalties as currently exist under the NFRD apply.
In this section of the guide
Explore all sections of the guide
Reporting template and tools
ESG reporting template ESG life cycle tool SFDR tools TCFD tools Timelines
Mapping of voluntary frameworks and standards
Definitions and distinctions Who is who Scope of information
Deep dive for VCs and investors
ESG reporting from a VC perspective ESG reporting from an investor perspective
