Policy Update

Draft sustainability reporting standards published (GEN – 1490.00)

Home›Policy Updates›Draft sustainability reporting standards published (GEN – 1490.00)

GEN – 1490.00. The European Commission has published the draft sustainability reporting standards, which supplement the Accounting Directive as amended by the Corporate Sustainability Reporting Directive. It is open for feedback until 7 July 2023.

Corporate Sustainability Reporting Directive

The Accounting Directive (2013/34/EU) as amended by the Corporate Sustainability Reporting Directive (CSRD – 2022/2464) requires large companies and listed small and medium-sized companies (SMEs), as well as parent companies of large groups, to include in a dedicated section of their management report the information necessary to understand the company’s impacts on sustainability matters, and the information necessary to understand how sustainability matters affect the company’s development, performance and position.

This information must be reported in accordance with European Sustainability Reporting Standards (ESRS), to be adopted by the Commission by means of delegated acts.

First set of European Sustainability Reporting Standards

The draft delegated act now published by the European Commission adopts the first set of European Sustainability Reporting Standards (ESRS) that undertakings shall use to carry out their sustainability reporting in accordance with Articles 19a and 29a of the Accounting Directive. The ESRS in this first set are sector-agnostic, meaning that they apply to all undertakings under the scope of the CSRD regardless of which sector or sectors the undertaking operates in.

In the future years, the Commission is expected to adopt additional delegated acts for additional sets of standards. The CSRD requires the Commission to adopt by June 2024: sector-specific standards, proportionate standards for listed SMEs, and standards for non-EU companies.

Next steps

The delegated regulation is open for feedback until 7 July 2023 via the Have Your Say platform. The European Commission is expected to formally adopt the regulation shortly after the feedback window closes.

Related documents and links

All related documents and articles can be found in the respective sections in the right sidebar.

  • GEN – 1490.01 – Draft Delegated Regulation on sustainability reporting standards
  • GEN – 1490.02 – Draft Delegated Regulation on sustainability reporting standards – Annex I
  • GEN – 1490.03 – Draft Delegated Regulation on sustainability reporting standards – Annex II