EU non-financial reporting: what are the draft requirements of the EFRAG climate standard?
ESG and sustainability disclosure and reporting requirements for listed and non-listed companies are rapidly taking shape.
The CSRD proposal was released in April 2021 and will replace the Non-Financial Reporting Directive (NFRD).
It is a transformative piece of legislation, targeting most large companies headquartered in Europe or listed on EU regulated markets and mandating standardised, audited corporate sustainability disclosures.
The first batch of working papers related to European Sustainability Reporting Standards (ESRS) has been released the 18th of January 2022. Among other documents, the first ESRS on climate change is published, leveraging the TCFD recommendations, GRI standards and inspired by SBTi and ACT initiatives and referencing GHG protocols and ISO standards.
EFRAG plans to deliver a full set of draft standards to the European Commission in 2022, which are expected to embrace the CSRD’s “double materiality” principle, covering both risks to and impacts of companies.