Proposal for a Directive amending Directive 2013/34/EU, Directive 2004/109/EC, Directive 2006/43/EC and Regulation (EU) No 537/2014, as regards corporate sustainability reporting

Author (Corporate)
Series Details COM (2021) 189
Publication Date 21/04/2021
Content Type

Summary:

Legislative initiative tabled by the European Commission on 21 April 2021, aimed at improving the flow of sustainability information in the corporate world. This is the proposal for a Corporate Sustainability Reporting Directive (CSRD).

Further information:

Directive 2014/95/EU - also known as Non-Financial Reporting Directive (NFRD) - requires certain large companies to disclose relevant non-financial information. It amended Directive 2013/34/EU - also known as the Accounting Directive.

In accordance with the NFRD, the European Commission published non-binding reporting guidelines for companies in 2017. Additional guidelines on reporting climate-related information were published in 2019. These guidelines were not seen to have improved sufficiently the quality of information companies disclose pursuant to the NFRD. The Commission committed to proposing a revision of the NFRD in its European Green Deal and its 2020 Work Programme. Such effort would also support the implementation of the 2018 Sustainable Finance Action Plan.

This proposal aims to amend the existing reporting requirements of the NFRD. The amendments include:

  • Extension of scope to all large companies and all companies listed on regulated markets (except listed micro-enterprises);
  • Requirement of audit (assurance) of reported information;
  • Introduction of more detailed reporting requirements, and a requirement to report according to mandatory EU sustainability reporting standards;
  • Requirement of tagging digitally the reported information, so it is machine readable and feeds into European single access point envisaged in Capital Markets Union (CMU) Action Plan.

The initiative was tabled by the European Commission on 21 April 2021, as part of a package of measures on sustainable finance overviewed by the Communication on EU Taxonomy, Corporate Sustainability Reporting, Sustainability Preferences and Fiduciary Duties.

Source Link https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:189:FIN
Alternative sources
  • https://ec.europa.eu/finance/docs/law/210421-proposal-corporate-sustainability-reporting_en.pdf
Related Link(s)
Official
European Commission: Sustainable Finance Package https://ec.europa.eu/info/publications/210421-sustainable-finance-communication_en
EUR-LEX: SWD(2021)150: Staff Working Document accompanying the Proposal - Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:150:FIN
EUR-LEX: SWD(2021)151: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:151:FIN
European Commission: Press Release, 21/04/2021: Sustainable Finance and EU Taxonomy: Commission takes further steps to channel money towards sustainable activities https://ec.europa.eu/commission/presscorner/detail/en/ip_21_1804
European Commission: Questions and Answers: Corporate Sustainability Reporting Directive proposal (21 April 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_1806
European Commission: Remarks by Executive Vice-President Dombrovskis at the press conference on the Sustainable Finance Package (21 April 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_1862
European Commission: Remarks by Commissioner McGuinness at the press conference on the Sustainable Finance Package (21 April 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_1863

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