Mandatory climate reporting?

In a step towards advancing its ambitions on becoming climate-neutral, the European Commission published several regulations and legal acts in the recent past, and more are likely to follow. The Green Deal is a pillar in the European Union’s efforts towards kick-starting its Member State’s economies as a response to the COVID-19 pandemic. Sustainable, climate-friendly technologies and related incentives lie at the heart of these activities. As a consequence of these developments, new regulatory instruments became necessary, and with them came additional reporting requirements. Alongside Regulation (EU)2020/852, more commonly known as the EU Taxonomy, other regulatory measures were introduced in the past to support reporting and benchmarking of economic activities and their effects on non-financial aspects. These include the Non-Financial Reporting Directive (NFRD) and the Sustainable Finance Disclosure Regulation (SFDR). The Non-Financial Reporting Directive (2014/95/EU) requires large companies, to disclose non-financial information on their business activities. The information covers environmental, social and governance related (ESG) information and supports transparency towards stakeholders and benchmarking against the EU’s targets.