EU Commission: proposal for a directive on sustainability reporting by companies

The commission has adopted a proposal for a directive on corporate sustainability reporting (CSRD), which would change the existing reporting obligations under the “non-financial reporting directive”. The proposal for a directive

    • extends the scope to all large companies (more than 500 employees) and all companies that are listed on regulated markets (except for listed micro-companies),
    • requires auditing the reported information,
    • introduces more detailed reporting requirements and a reporting requirement according to the binding EU standards for sustainability reporting,
    • requires the information in digital form – “digital tagging” – so that it is machine-readable. The guideline explicitly refers to the “digital tagging” introduced in the context of financial reporting data with ESEF – European Single Electronic Format (see guideline loc. Cit., Footnote 15).

According to this proposal, future sustainability reporting will be carried out on the technological basis of iXBRL / ESEF (draft directive, see paragraph 48 and Article 19d).

The publication of the sustainability reporting is to take place centrally via the new European Single Access Point (ESAP).

Source: European Commission, Mitteilung Sustainable finance package, 21.04.2021, https://ec.europa.eu/info/publications/210421-sustainable-finance-communication_en; European Commission, draft directive, 21.04.2021, https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52021PC0189&from=EN