#EUinTwo
Автор: FleishmanHillard EU
Загружено: 2021-04-23
Просмотров: 3819
The Corporate Sustainability Reporting Directive marks a distinct step change in corporate reporting requirements from what is required today. Here is what you need to know about the #CSRD and how it links with the #EUtaxonomy.
Full script:
As part of the European Commission’s focus on directing finance towards the European Green Deal, a legislative proposal has been published that will underpin much of the EU’s sustainable finance agenda.
The Corporate Sustainability Reporting Directive, previously known as the NFRD, marks a distinct step change in corporate reporting requirements from what is required today.
To understand the importance of these changes, it is helpful to take a step back and look at the broader sustainable finance policy landscape.
Disclosure requirements have recently been introduced for the investor community which require reporting on the integration of sustainability risks into investment decisions or financial advice.
At the same time, the EU taxonomy will also require companies across the EU to report on how their activities are associated with environmentally-sustainable activities.
These changes have further reinforced the need for sustainability disclosure that is not met by today’s framework.
Key changes in the proposal include an increase in the scope to include all large companies and all companies listed on EU markets, with the exception of micro-undertakings.
Concretely, this will expand the number of companies required to report under the framework from around 11000 to 49,000.
A crucial area that is being addressed is the level of detail and scope of information that companies will be required to report on
Sustainability reporting should now include a specific double materiality assessment – incorporating the information necessary to understand the company’s impact on sustainability factors as well as how sustainability factors affect the company’s development, performance and position.
More specifically, this incorporates information concerning the interests of company stakeholders, as well as a description of the potential adverse impacts connected to the company and its value chain.
In addition, the proposal requires the creation of mandatory EU sustainability reporting standards to further outline the information to be reported on concerning social, governance and environmental factors – with the latter to include information pertaining to the six objectives within the EU taxonomy framework.
The Commission has established an ambitious timeline for the CSRD, outlining that reporting should start on 1 January 2023 or during the calendar year 2023 (or 2026 for listed SMEs).
Whilst we are at the start of the negotiation process, it is clear from the proposal that the final outcome will be a significant shift in corporate sustainability reporting that could play a large role in closing the ESG data gap.
#EUinTwo
Доступные форматы для скачивания:
Скачать видео mp4
-
Информация по загрузке:
