On 22nd of March 2023 a proposal of the Directive of the European Parliament and of the Council on substantiation and communication of explicit environmental claims (Green Claims Directive) has been published. This Directive intends to to harmonise further the regulation of environmental claims. Such harmonisation will strengthen the market…
Georg Tichy: What’s the role of ESG for corporate reporting ChatGPT 4: ESG stands for Environmental, Social, and Governance. These three factors are increasingly important for corporations to report on, as they’re considered key metrics of a company’s ethical impact and sustainable practices. The role of ESG in corporate reporting…
The “G” for “Governance” stands for controlled and transparent corporate management and includes topics that support sustainable corporate management, such as corporate values or management and control processes. The ESRS (European Sustainability Reporting Standards) Exposure Drafts define on a very detailed level the future reporting requirements of the CSRD. Below…
The “S” for “Social” in the ESRS stands for corporate social responsibility and includes aspects such as occupational health and safety, diversity or social commitment. The ESRS (European Sustainability Reporting Standards) Exposure Drafts define on a very detailed level the future reporting requirements of the CSRD. Below you find an…
The “E” for “Environment” stands for environmental protection measures with regard to climate protection and climate change that reduce environmental pollution, prevent greenhouse gas emissions or improve energy efficiency. The ESRS (European Sustainability Reporting Standards) Exposure Drafts define on a very detailed level the future reporting requirements of the CSRD.…
ETFs are not explicitly mentioned in the Sustainable Finance Disclosure Regulation (SFDR) as they are subsumed under investment funds. However, Art 8 and 9 of the Disclosure Regulation contain provisions concerning ETFs and define when an ETF is sustainable. SFDR Art 8: Where a financial product promotes, among other characteristics,…
This article summarises the area of application of the Corporate Sustainability Reporting Directive (CSRD), the Taxonomy Regulation, the Corporate Sustainability Due Diligence obligation and the Non-Financial Reporting Directive. CSRD (Corporate Sustainability Reporting Directive) Deadlines for implementation by companies: January 1, 2024 for companies already subject to the NFRD (reporting in…
The proposal for a Corporate Sustainability Reporting Directive (CSRD) identifies EFRAG as technical advisor to the European Commission providing draft European Sustainability Reporting Standards (‘ESRS’). EFRAG was requested by Commissioner McGuinness in May 2021 to put in place interim working methods in project mode to start the technical development of…
From 2023 large companies as defined in the CSRD (Corporate Sustainability Reporting Directive) and, from January 1, 2026, small and medium-sized enterprises of stock listed companies shall include in the management report information necessary for an understanding of the sustainability impacts of the company’s activities and the impact of sustainability…
The concept of double materiality was mentioned in the non-financial reporting guidelines by the European Commission. It reads as follows: A company shall provide “information to the extent necessary for an understanding of the undertaking’s development, performance, position”. This is the outside-in view i.e. describing how industry trends (e.g. e-mobility,…
For every business, it is crucial to develop brand awareness to attract more potential customers and increase sales. There are already billions of social media users worldwide which is why the modern digital world is a great place to establish your brand. With different social media channels available, it wouldn’t…
The EU Green Deal launched an EU Action Plan during 2021 that will keep us busy for the next few years and avoid greenwashing. For example, the groundwork has been laid to direct more capital flows into sustainable investments (i.e. sustainable finance). There are many changes to come and the…