Sustainable Finance: Commission consults on proposed sustainability reporting standards for companies

The Commission has launched a four-week feedback period on a first set of sustainability reporting standards for companies. Mandatory reporting standards will ensure that companies are fully transparent about their impact on people and the environment, as well as about the risks they face from climate change and other issues. They will be a key tool to combat greenwashing. These standards will also help companies to communicate and manage their sustainability performance more efficiently.

Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union, said: “The draft standards we are consulting on are ambitious and are an important tool underpinning the EU’s sustainable finance agenda. These draft standards include provisions to limit the burden on reporting companies while at the same time enabling companies to show the efforts they are making to meet the Green Deal Agenda, and accordingly have access to sustainable finance.”

The Commission will consider the feedback received before finalising the standards as delegated acts and submitting them to the European Parliament and Council for scrutiny. Once adopted, these reporting standards will be used by companies subject to the Corporate Sustainability Reporting Directive (CSRD). This will mark another step forward in the transition to a sustainable EU economy.

These draft standards take account of technical advice from EFRAG (the body formerly known as the European Financial Reporting Advisory Group). They also take account of intensive and constructive technical discussions with the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI) in order to ensure a high degree of interoperability between EU and global standards and to prevent unnecessary double reporting by companies.

The reporting requirements will be phased in over time for different companies.

European sustainability reporting standards – first set.