This is a draft bill that has not yet been adopted by the German government. Associations and specialist groups will be given the opportunity to comment beforehand. The draft bill serves to transpose the CSRD into national law by July 6, 2024. The existing legal framework is also to be reviewed and selectively adapted on this occasion.

The CSRD introduces sustainability reporting for large and small or medium-sized capital market-oriented companies under accounting law and an audit of this sustainability reporting. The Accounting Directive, the Transparency Directive and the Auditing Directive have been amended accordingly. These amendments are essentially to be implemented 1:1 with this draft bill.

The draft bill provides for the CSRD to exercise a significant right of choice to the effect that, in addition to the auditor of a company's annual or consolidated financial statements, other auditors or auditing firms, but not other independent providers of assurance services, are to be approved as auditors of the legally required sustainability report.

Comments on the draft bill can be submitted to the BMJ until April 19, 2024 as part of the so-called participation of the federal states and associations. The comments will generally be published on the BMJ's website.