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On Tuesday evening negotiators for the European Parliament and EU governments reached a provisional agreement on the Corporate Sustainability Reporting Directive (CSRD), a proposal for which the European Commission had published some 14 months ago.
It will require companies to report on their alignment to the EU taxonomy and on their negative impacts on sustainability issues – called Principal Adverse Impacts under the EU sustainable finance disclosures regulation (SFDR).
The planned rules also require companies to disclose their plans to reach climate neutrality by 2050, and confirm EFRAG in its role as developer of the standards for reporting.
“This is a landmark in the development of company reporting, a significant step forward in the area of disclosures, covering many sectors of the economy,” said Mairead McGuinness, EU Commissioner for financial services and the Capital Markets Union. “Sustainability reporting will now be on an equal footing with financial reporting.”
At PensionsEurope in Brussels, policy adviser Anastasios Pavlos said the pension funds industry welcomed the trilogue agreement.
“As investors, pension funds are users of the data which will be required by companies under the legislative proposal for a CSRD,” he said. “Pension funds will shortly be better informed about the impact of business on human rights and the environment.”
“[It] is essential to support a coherent implementation of the EU regulatory framework on sustainable finance”
Victor van Hoorn, executive director of Eurosif
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