Skip to main content

Sustainability reporting for aviation lessors - key takeaways

Apr 25, 2024

Advisory
A sleek black pen with 'Walkers' branding lies atop a closed notebook, both featuring raised 'Walkers' logos.

KEY TAKEAWAYS:

  • Companies must prepare now for CSRD sustainability reporting requirements, with reports due in 2026

  • Develop a clear strategy for handling CSRD's complex consolidated reporting to ensure smooth compliance

  • Embracing CSRD reporting gives access to sustainable investments and financing

Lawyers from our Irish law Asset Finance practice recently hosted a lunch and learn event on sustainability reporting and its impact for those working in the aviation leasing space.

Partners Donna Ager, Matt Hedigan and Killian McSharry spoke on topics such as;

  • Introduction to Sustainability Regulations for Aircraft Lessors;
  • Sustainability Reporting – Who, What & When;
  • D&O Duties & Enforcement; and
  • Sustainability Reporting in Practice - What to Expect in Documents.
Read some of their key takeaways below.

  • The EU’s Corporate Sustainability Reporting Directive (the “CSRD”), the US SEC’s Climate-Related Disclosures, and the ISSB standards have become the leading frameworks for climate-related disclosures across the globe

  • Enactment of CSRD in Ireland is expected on or before 6 July 2024 and will likely be in the form of an amendment to the Companies Act 2014

  • Companies with balance sheets over EUR25m and net turnover in excess of EUR50m in-scope for CSRD sustainability reporting for FY 2025 with reports to be published 2026

  • CSRD rules related to consolidated reporting are complex so it is important for companies to prepare a group strategy and action plan to implement sustainability reporting

  • Leasing companies coming in-scope for FY 2025 should begin to focus on their approach to materiality assessments and accessing data from relevant stakeholders in the value-chain

  • Reporting under CSRD does not require companies to meet certain minimal environmental or social standards, but it is intended to drive better corporate behaviour

  • Officers and directors should remind themselves of their fiduciary and legal obligations under the Companies Act 2014 which are expected to apply to CSRD

  • The transition to a CSRD compliant operating environment will be a significant challenge for leasing companies but also a real opportunity to show leadership in sustainability

  • Embracing CSRD reporting will enhance access to the growing number of investment and financing products aimed at pursuing sustainability objectives
Watch our sustainability reporting webinar below.

Click here

Authors

Get the latest insights and expertise in your inbox 

Fluid ink image
Sign up