The EU’s so-called April 2021 package is a major contribution to the effort of extending the European Growth strategy, the Green Deal, widely across all sectors and existing regulation. The new Corporate Sustainability Reporting Directive aims to align sustainability reporting with financial reporting and extends reporting requirements to even more companies.
The EU’s April package introduces new tools for implementing the Green Deal and directing financial flows towards sustainable economic activity. The April package consists of three parts:
- EU Taxonomy Climate Delegated Act, which further classifies which economic activity can be seen to align with definitions of climate change adaptation and mitigation.
- Corporate Sustainability Reporting Directive, which proposes several methods to increase consistency of non-financial reporting and for the first time proposes mandatory assurance of the non-financial data.
- Six amending delegated acts, which add sustainability-related articles in existing regulation concerning especially financial firms and insurance providers. For example, a financial advisor will have to obtain information on the client’s sustainability preference in addition to traditional risk assessment.
Corporate Sustainability Reporting Directive extends reporting requirements to even more companies
The proposal on Corporate Sustainability Reporting Directive, which would amend the previous non-financial reporting directive, addresses the widely recognized challenge related to varied sustainability reporting practices and the quality of data reported. Also, it extends reporting requirements to even more companies.