France: The effects of the transposition of the CSRD & the legal evolution on the audit profession in France

The Corporate Sustainability Reporting Directive (CSRD) constituted a significant event: the transformation of non-financial reporting in terms of nomenclature, scope, and public perception. It has now been rebranded as « sustainability reporting » and will be mandatory for large corporations and small and medium-sized enterprises. The release of the European Sustainability Reporting Standards (ESRS) was highly expected. This common framework for reporting is accompanied by the introduction of mandatory audits of sustainability reports that highlights the increasing importance placed on the reliability of sustainability data. The requisite audit of these reports will ensure credibility, verifiability, and comparability. France was the first Member to transpose the CSRD in its national law, and despite the clear ambition of the directive, this transposition raises significant questions for the auditing profession. This transposition triggered substantial changes to the French commercial code, reinterpreting the role and responsibilities of auditors. Moreover, theses transformations occur in an environment still marked by the PACTE-law in 2019, which has diminished the mandatory scope of financial audit, and consequently, weakened the perceived relevance of auditor's function. Within this context, this study seeks to examine in France the implications of the directive's implementation for the auditing profession. More precisely, it will explore how the CSRD redefine the role and responsibilities of auditors in sustainability reporting and how these new requirements will affect the professional qualifications and recognition. Also, if these changes are sufficient to restore trust in a profession that has recently experienced instability. The study also considers the prospective repercussions of the ongoing Omnibus reform, which aims to amend reporting thresholds and reduce the extent of mandated disclosure, thereby potentially modifying the scope and original ambition of the CSRD. In order to answer these questions, a quantitative and qualitative research design will be employed. This methodological approach will integrate an in-depth documentary analysis of the regulatory texts, transposition measures and publications issued by professional organizations, along with a survey in a form of closed answers questionnaires carried out with auditors and regulatory bodies. This dual approach will allow a comparison between the original intentions of the CSRD, the adjustments on national level, and the consequential legislative evolution such as Omnibus. Drawing on institutional theory, we will explore how the implementation of integrated sustainability reporting reconfigures professional roles, qualifications, and legitimacy. While the research is at an early stage, we foresee that the survey will highlight a symbolic revalorization of the auditing profession due to its new mission. Based on our first results we anticipate the revealing the ambiguity and professional tension they experienced between traditional mandates and new expectations, which may once again weaken the perceived importance of the auditor's role. This study aspires to contribute to the literature on the institutionalization of sustainability reporting and highlights the dynamic interplay between regulatory innovation and professional challenges encountered by institutionalized professions. In focusing on the French case, the study aims to offer relevant insights into the legal and professional challenges encountered by the effective publication of sustainability reports, and the ongoing debates about the evolving function of auditors regarding this framework.