Legal & Regulatory News

European Commission adopt proposal for a Corporate Sustainability Reporting Directive

On 21 April 2021, the European Commission adopted a proposal for a Corporate Sustainability Reporting Directive (CSRD) which revises and strengthens the existing rules introduced by the Non-Financial Reporting Directive (NFRD).

The proposal:

• extends the scope to all large companies and all companies listed on regulated markets, meaning nearly 50,000 EU companies will need to follow EU sustainability reporting standards, an increase from the 11,000 companies that are subject to the existing requirements;
• requires the audit of reported information;
• introduces more detailed reporting requirements, and a requirement to report according to mandatory EU sustainability reporting standards;
• requires companies to digitally ‘tag’ the reported information, so it is machine readable and feeds into the European single access point envisaged in the capital markets union action plan; and
• simplifies the reporting process for companies.

Click here to access the text of the proposal for a CSRD.