Filip Gregor
Head of the Responsible Companies Team
We have analysed hundreds of pages of technical documents and prepared a comprehensive overview of the sustainability reporting requirements under the forthcoming EU legislation. We summarise what ESG data will be critical for companies, banks, and investors in sustainability strategy and management and in the areas of climate change, environment, sustainable activities, employees and supply chains, due diligence, and anti-corruption measures.
In the integrated overview, we present the requirements of the Sustainable Finance Disclosure Regulation (SFDR), Corporate Sustainability Reporting Directive (CSRD, the reform of the Non-Financial Reporting Directive), and the Regulation on Taxonomy of Sustainable Activities.
Currently, only large listed companies, banks, and insurance companies with more than 500 employees have to report sustainability data. The CSRD proposal, introduced in April 2021, extends the scope to all large companies and SMEs listed on stock exchanges, except for microenterprises. Investors and other financial market participants must also disclose sustainability data under the SFDR. The rules for companies and investors are complemented by regulation on a framework to facilitate sustainable investments - Taxonomy. Standards will be developed for both the SFRD and the Taxonomy to clarify specific technical details and criteria.
The final drafts of these standards are clearly summarised in the integrated overview by Frank Bold:
On 23 February 2022, the European Commission released its proposal for a directive on Corporate Sustainability Due Diligence. This directive could represent a landmark step forward in minimising the negative impacts of businesses on workers, communities and the environment worldwide. In response, over 220 NGOs and trade unions from around the world welcome the proposal as an essential and long-awaited step toward corporate accountability, responsible business conduct and access to justice.
Investors, asset managers and civil society organisations call for the prompt implementation of the reform on corporate sustainability reporting and EU standards
Frank Bold together with other leading NGOs working on corporate sustainability and sustainable finance raised strong concerns about the delay in the publication of the Sustainable Corporate Governance initiative, as well as the lack of information explaining such new delay.
