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 isa 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.