Executive Vice President Valdis Dombrovskis already announced in January that following the publication of the Green Deal and the initiation of the revision of the EU Non-Financial Reporting Directive (NFRD), he would invite EFRAG to “undertake preparatory work for the elaboration of possible EU non-financial reporting standards”.
This week, EFRAG -an accountancy advisory body set up by the EU Commission- has received the official request to establish a multi-stakeholder Project Task Force to produce a report by October 2020 and deliver its final recommendations in early 2021. The role of these standards would still need to be proposed and approved by the EU Commission, the Council and the EU Parliament during the reform process of the EU NFRD. However, Dombrovskis wishes to start this work to enable a swift implementation of the standards as soon as co-regulators reach an agreement.
Filip Gregor, Head of Responsible Companies at Frank Bold and member of the EFRAG European Reporting Lab, is leading the Alliance for Corporate Transparency. Earlier this year, this initiative presented the results of the largest research on companies’ sustainability disclosures, which clearly put in evidence the need to specify and develop the reporting requirements in the Directive and develop mandatory sector-specific standards.
In response to this recent announcement, Mr Gregor said:
“The creation of EU standards on corporate sustainability reporting is an indispensable step to ensure that companies disclose comparable and decision-useful information. The reform of the NFR Directive and the development of standards hold the key to achieve the objectives marked in the European Green Deal. We can’t create a sustainable economy and financial system without getting the first layer right: information on companies’ sustainability risks and impacts.
You can find further details about this announcement here. More information about the research carried out by the Alliance for Corporate Transparency on 1000 European companies here and a joint NGO statement supporting the EU Commission plans here.
Contact us:
0032 485 73 41 07
After three months of rushed decision-making, the European Commission presented its Omnibus Simplification Package and proposed major rollbacks to the EU’s corporate sustainability legislation, threatening to undermine Europe's leadership in sustainable business practices and ESG reporting.
With the latest leaks, it is becoming clearer and clearer that President Ursula von der Leyen and Commissioner Valdis Dombrovskis are willing to sacrifice the very foundations of the EU’s ESG legislation all whilst bypassing the due legislative process.
The expert group Frank Bold, along with Greenpeace and Friends of the Earth, has submitted a complaint to the European Commission regarding the actions of Czech authorities in setting emission limits for the Počerady coal power plant. In August 2024, a court revoked the plant's extensive emission limits derogation, and authorities were required to immediately reflect this decision in its operating permit. However, this has not yet happened. As a result, the power plant is currently violating the legal limit for mercury emissions. The complainants are calling on the Commission to investigate whether the Czech Republic’s approach to Počerady is in breach of the EU Industrial Emissions Directive (IED).
