EU’s accountability in climate action: greenwashing and sustainability

Abstract

This thesis explores how the Corporate Sustainability Reporting Directive and the European Sustainability Reporting Standards establish legal accountability for corporate climate reporting in the European Union. By evaluating the move from voluntary frameworks to binding, the thesis emphasises the CSRD's role in integrating enforced sustainability disclosures into corporate governance. The CSRD sets out reporting criteria for companies listed within the EU but faces challenges stemming from the length of the directive to simplification measures taken, most importantly the Omnibus Package. The analysis conducted for the Omnibus Package show, that while the CSRD seeks to strengthen transparency, its legal effectiveness is hampered by ambiguous standards, a limited scope, and an increased risk of greenwashing.