| Author (Corporate) | Council of the European Union, European Parliament |
|---|---|
| Series Title | Official Journal of the European Union |
| Series Details | L 322, Pages 15-80 |
| Publication Date | 16/12/2022 |
| Content Type | Blog & Commentary, Legislation, Policy-making |
Summary:Directive (EU) 2022/2464 - adopted by the co-legislators on 14 December 2022 - aimed at improving the flow of sustainability information in the corporate world. It is also known as the Corporate Sustainability Reporting Directive (CSRD). This is a text with EEA relevance. 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 Directive introduces amendments to the existing reporting requirements of the NFRD. The CSRD introduces more detailed reporting requirements and ensures that large companies and listed small and medium-sized enterprises (SMEs) are required to report on sustainability matters such as environmental rights, social rights, human rights and governance factors. The European Financial Reporting Advisory Group (EFRAG) is responsible for developing draft European standards, which are eventually adopted by the European Commission as a delegated act. 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. The Council of the European Union adopted its general approach on 24 February 2022. The plenary of the European Parliament endorsed a negotiating position in April 2022. An informal agreement between the co-legislators on a compromise text for this file was reached on 21 June 2022. This was formally endorsed by the Parliament on 10 November and by the Council on 28 November. The Act was signed by the co-legislators on 14 December 2022 and published in the Official Journal on 16 December 2022. |
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| Subject Categories | Business and Industry, Environment |
| Subject Tags | Capital Markets Union [CMU], Sustainable Development |
| International Organisations | European Union [EU] |
