CSRD and Sapin 2: A Strategic Interoperability?

The transposition of the Corporate Sustainability Reporting Directive (CSRD) imposes new non-financial reporting obligations on French businesses, including indicators related to anti-corruption efforts. The French Anti-Corruption Agency (AFA) has issued a guide to ensure effective interoperability between the CSRD and the Sapin 2 law. Our experts explain this strategic convergence aimed at strengthening corporate compliance.

Non-Financial Reporting: New Obligations for Businesses

Starting in 2025, several thousand French companies will be required to publish the results of their new non-financial reporting obligations following the transposition of the CSRD directive.

This directive applies, according to a set timetable, to both listed and non-listed companies, large businesses, medium-sized companies, and even SMEs. Within this reporting, companies must include indicators regarding their anti-corruption policies and any past convictions for corruption-related offenses.

In France, the fight against corruption is regulated by the Sapin 2 law (Law No. 2016-1691 of December 9, 2016, on transparency, anti-corruption, and modernization of economic life). This law already requires companies above certain thresholds to implement measures to prevent and detect acts of corruption and influence peddling, both domestically and internationally.

On October 16, the French Anti-Corruption Agency unveiled a guide to help companies implement these obligations under the CSRD in a consistent and progressive manner while incorporating indicators from the "Sapin 2" compliance program into their sustainability reports.

CSRD/Sapin 2: An Essential Interoperability?

A Closer Look at These Two Regulations

In this context, the French Anti-Corruption Agency recalls the eight pillars of the Sapin 2 law:

     0. Necessary precondition: commitment from the governing body;

1. Mapping of corruption and influence peddling risks

2. Code of Conduct;

3. Awareness and training ;

4. Evaluation of third-party integrity;

5. Internal anti-corruption alert system;

6. Anti-corruption accounting controls;

7. Internal compliance control system ;

8. Disciplinary system. 

The AFA links these requirements to the CSRD's European sustainability reporting standards (ESRS). There are 12 standards, divided into four areas, including Governance. The ESRS G-1 standard - Business Conduct, which is subject to double materiality analysis, includes specific reporting requirements on corruption prevention and detection, such as the following Disclosure Requirements:

• G1-3 : « Prevention and detection of corruption and bribery»
• G1-4 : « Proven cases of corruption or proven bribery payments »

Over 5,000 French companies are impacted by the CSRD directive, though the majority are not directly subject to Article 17 of the Sapin 2 law. Due to the CSRD's thresholds, many companies currently subject to the Sapin 2 law will also need to comply with the CSRD's requirements starting in 2025, thereby strengthening their transparency and anti-corruption practices.

However, the AFA specifies that its recommendations are also aimed at companies that do not meet the thresholds set by the Sapin 2 law, helping them progressively adopt tailored compliance measures.

Interoperability Between the CSRD and Sapin 2

The AFA  asserts that the requirements of the Sapin 2 law align perfectly with those of the European CSRD directive. This complementarity enables businesses to effectively meet both regulations, simplifying their compliance and transparency reporting process. For example, evaluating third-party integrity serves both sustainability goals and anti-corruption and influence peddling objectives. Specific measures are recommended to support CSRD reporting.

The AFA emphasizes that the reporting standards set by the CSRD directive require the effective implementation of an anti-corruption prevention and detection system, in line with the Sapin 2 law. Adopting this framework should not be viewed as a mere regulatory formality but as a strategic lever for the business, particularly in terms of sustainability.
 

The AFA strengthens its position by stating: "For other companies [not subject to the Sapin 2 law], which have not voluntarily developed anti-corruption prevention and detection measures, they must report it and express their intent to define them. Therefore, the AFA believes that it is in the best interest of these companies to gradually establish an anti-corruption system, as this approach offers numerous benefits."

Beyond regulatory obligations, economic issues now profoundly impact the business world, influencing both financing costs—especially with respect to lending conditions and interest rates—and competitive positioning in tenders through better scores on these criteria in evaluation grids. Sustainability and business ethics have become key corporate criteria, affecting clients, suppliers, and intermediaries.

The publication from the French Anti-Corruption Agency also underscores the importance of coherent interconnection between compliance programs and systems. This coherence opens up opportunities for rationalizing costs associated with compliance efforts. Identifying common areas helps avoid excessive program overlap, which could hinder operational performance and limit buy-in at all organizational levels.

This publication serves as a reminder that compliance should not be built as a series of siloed systems, each targeting a specific regulatory obligation. It is up to each organization to identify the key issues within its processes and activities to develop coherent and tailored measures that can preserve both operational efficiency and risk management. The challenge for compliance teams is to define high-value measures with sufficient operational integration so that they are implemented meaningfully and with commitment.

From risk mapping to training, from the establishment of procedures to the formulation of risk management policies, RSM France assists you in developing and updating your anti-corruption framework.