European regulator proposes sustainability reporting standards
Here’s the intro from this article from “ESG Today”:
The European Financial Reporting Advisory Group (EFRAG) announced the release of its initial draft of European Sustainability Reporting Standards, setting out the proposed rules and requirements for companies to report on sustainability-related impacts, opportunities and risks under the EU’s upcoming Corporate Sustainable Reporting Directive (CSRD).
EFRAG’s proposals were released as a series of exposure drafts (EDs) covering a broad set of environmental, social and governance topics ranging from climate change to workers in the value chain and business conduct governance. Companies covered by the rules would be required to provide sustainability reporting on their strategies and business models, governance and organization, materiality assessments of sustainability impacts, opportunities and risks, as well as policies, targets, action plans and performance.
The CSRD, currently under development, is aimed as a major update to the current Non-Financial Reporting Directive (NFRD), the current EU sustainability reporting framework. The new rules will significantly expand the number of companies required to provide sustainability disclosures to over 50,000 from around 12,000 currently, introduce more detailed reporting requirements, and require audited assurance of the information reported.