The AFA Encourages Adoption of Sapin II Standards by Companies Subject to the CSRD
On October 16, 2024, the French Anti-Corruption Agency (AFA) published a guide to assist companies subject to the Corporate Sustainability Reporting Directive (CSRD) in reporting their anti-corruption compliance programs. This initiative specifically targets companies that are not yet bound by the obligations of the Sapin II law.
Compliance with European Sustainability Reporting Standards (ESRS)
In accordance with the Business Conduct requirements and ESRS 2 of the European Sustainability Reporting Standards (ESRS), companies must report on their compliance measures. The AFA believes that the reporting standards established by the CSRD create an obligation for these companies to implement a program in line with the requirements of the Sapin II law, even if they do not meet the usual thresholds.
The AFA’s Encouragements
In a statement, the AFA emphasized: “Companies that have not voluntarily developed measures for the prevention and detection of corruption will need to state this and demonstrate their intention to do so. The AFA therefore considers it in the interest of these companies to progressively adopt anti-corruption measures, as this will bring them numerous benefits.”
Alignment Between the CSRD and Sapin II Law
In response, companies are encouraged to report the absence of a program and to outline their intentions regarding the future implementation of such measures. To facilitate this transition, the AFA has commented on the eight pillars required by the Sapin II law, aligning them with the CSRD’s disclosure requirements. This alignment aims to ensure interoperability between compliance obligations and reporting requirements.
Benefits of Interoperability for Companies
Despite potential debate around the AFA’s position regarding companies not subject to the Sapin II law, the interoperability between anti-corruption compliance measures and ESG reporting obligations is likely to simplify the reporting process and generate benefits. As the AFA highlights, this may positively impact governance, reduce time spent on data collection and transcription, and improve the reliability of the information provided.
Impact on Due Diligence and Investor Confidence
Ultimately, this approach should facilitate third-party due diligence and provide greater visibility to investors regarding company transactions, thereby strengthening trust and transparency in the economic sector.
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