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Brussels, |
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Corporate reporting, EU Labels and other disclosures
Corporate Sustainability Reporting
On 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD).
The European Union requires large companies and listed companies to publish regular reports detailing the social and environmental risks they face, as well as the impact of their activities on people and the environment.
These reports are crucial for ensuring transparency and accountability, helping stakeholders understand how companies are addressing sustainability challenges and contributing to broader environmental and social goals.
The first set of ESRS was published in the Official Journal on 22 December 2023 under the form of a delegated regulation.
The European Union requires large companies and listed companies to publish regular reports detailing the social and environmental risks they face, as well as the impact of their activities on people and the environment.
These reports are crucial for ensuring transparency and accountability, helping stakeholders understand how companies are addressing sustainability challenges and contributing to broader environmental and social goals.
The first set of ESRS was published in the Official Journal on 22 December 2023 under the form of a delegated regulation.
EU Labels for Benchmarks (Climate, ESG) and Benchmarks’ ESG Disclosures
The EU has implemented rules to enhance transparency in benchmark methodologies, particularly those related to ESG (Environmental, Social, and Governance) and low-carbon benchmarks.
Following the legislative process, Regulation (EU) 2019/2089 of 27 November 2019 amending Regulation (EU) 2016/1011 as regards EU climate transition benchmarks, EU Paris-aligned Benchmarks and sustainability-related disclosures for benchmarks was published in the Official Journal on 9 December 2019, and entered into application on 30 April 2020.
On 17 July 2020, the European Commission adopted new rules setting out minimum technical requirements for the methodology of EU climate benchmarks. The delegated acts were published in the Official Journal of the European Union on 3 December 2020 and entered into application on 23 December 2020.
These rules aim to standardize the methodologies used for these benchmarks, ensuring that they accurately reflect ESG factors and contribute to the EU's sustainability objectives. The transparency of these methodologies allows investors to make informed decisions based on reliable and comparable data.
Following the legislative process, Regulation (EU) 2019/2089 of 27 November 2019 amending Regulation (EU) 2016/1011 as regards EU climate transition benchmarks, EU Paris-aligned Benchmarks and sustainability-related disclosures for benchmarks was published in the Official Journal on 9 December 2019, and entered into application on 30 April 2020.
On 17 July 2020, the European Commission adopted new rules setting out minimum technical requirements for the methodology of EU climate benchmarks. The delegated acts were published in the Official Journal of the European Union on 3 December 2020 and entered into application on 23 December 2020.
These rules aim to standardize the methodologies used for these benchmarks, ensuring that they accurately reflect ESG factors and contribute to the EU's sustainability objectives. The transparency of these methodologies allows investors to make informed decisions based on reliable and comparable data.
Sustainability-Related Disclosures in the Financial Services Sector
Financial market participants and advisers in the EU are required to communicate sustainability-related information to investors. This includes disclosing how sustainability risks and opportunities are integrated into their investment decisions and advice.
These disclosures are essential for ensuring that investors are aware of the sustainability aspects of their investments, thereby promoting greater transparency and supporting the transition to a more sustainable economy.
The EU has put in place a transparency framework, the Sustainable Finance Disclosure Regulation (SFDR). By setting out how financial market participants have to disclose sustainability information, it helps those investors who seek to put their money into companies and projects supporting sustainability objectives to make informed choices. The SFDR is also designed to allow investors to properly assess how sustainability risks are integrated in the investment decision process. In this way, the SFDR contributes to one of the EU’s big political objectives: attracting private funding to help Europe make the shift to a net-zero economy.
The European Commission is currently carrying out a comprehensive assessment of the framework, looking at issues such as legal certainty, usability and how the Regulation can play its part in tackling green-washing.
These disclosures are essential for ensuring that investors are aware of the sustainability aspects of their investments, thereby promoting greater transparency and supporting the transition to a more sustainable economy.
The EU has put in place a transparency framework, the Sustainable Finance Disclosure Regulation (SFDR). By setting out how financial market participants have to disclose sustainability information, it helps those investors who seek to put their money into companies and projects supporting sustainability objectives to make informed choices. The SFDR is also designed to allow investors to properly assess how sustainability risks are integrated in the investment decision process. In this way, the SFDR contributes to one of the EU’s big political objectives: attracting private funding to help Europe make the shift to a net-zero economy.
The European Commission is currently carrying out a comprehensive assessment of the framework, looking at issues such as legal certainty, usability and how the Regulation can play its part in tackling green-washing.
