Climate risk is now a core business issue. Climate change is reshaping the business landscape, through physical disruptions to assets and operations, accelerating the urgent need to transition to a low-carbon economy. For companies of all sizes, understanding and managing these risks is no longer optional.
The next months are key to determining what kind of sustainability data companies will disclose. For the transformation to an economy within planetary boundaries, we call on the ISSB to develop standards that go beyond climate, require reporting on key impact data and ensure climate-related disclosures are sufficiently granular to be meaningful.
The European Commission, Parliament and Council reached an agreement for the new EU Corporate Sustainability Reporting Directive (CSRD) that clarifies disclosure obligations for large companies and listed SMEs, and mandates the development and adoption of mandatory EU corporate sustainability reporting standards.
European companies can now take a look at the draft sustainability reporting standards they will report against in the coming years. The drafts were developed by the EFRAG Project Task Force on EU Sustainability Reporting Standards, with the participation of two Frank Bold representatives - Head of the Responsible Companies Section Filip Gregor, and Joanne Houston, from Frank Bold's Brussels office. Both experts will continue contributing to the development of the EU standards as members of the newly established EFRAG Sustainability Pillar.
Following months of negotiations in the European Parliament, the amendments to the CSRD proposal have been approved by the JURI committee this Tuesday 15th of March.
The Corporate Sustainability Reporting Directive (CSRD) proposal stipulates that EFRAG should be responsible for carrying out a due process to draft, consult and deliver EU sustainability standards for adoption by the European Commission. On 1 March, the EFRAG General Assembly appointed the members of the EFRAG Sustainability Reporting Board, which will be responsible for all sustainability reporting positions of EFRAG, including technical advice to the European Commission on draft EU Sustainability Reporting Standards and related amendments.
Dear Members of the European Parliament, In the next couple of weeks, various committees in the European Parliament will vote on their proposals to reform the EU Corporate Sustainability Reporting Directive (CSRD). In view of that, the co-signing organisations are calling for broadening the scope of the companies to be covered by the new rules by including all listed SMEs, as well as non-listed SMEs operating in high-risk sectors, subject to proportional rules.
