Monthly Sustainability Update:

Hello, we are back with our monthly update, get ready as many things are happening ??. In this update, you can expect:

The European Financial Reporting Advisory Groups (EFRAG) latest on:

1. Draft XBRL Taxonomy?Explainations on the Q&A platform
2. Educationsal videos on SMEs standards
3. Sector Standards Update

EU Nature Restoration Law, CSRD transcription in Italy and sustainability reporting in China.

The Latest From EFRAG

?? Draft XBRL Taxonomy for ESRS out for consultation

On February the 8th EFRAG released the Draft XBRL Taxonomy for ESRS, open for feedback until 8 April ‘24, with the final version expected to be approved in the summer.

• The XBRL Taxonomy for ESRS is a digital framework developed by EFRAG to tag sustainability reporting data in machine-readable XBRL format.
• It works by providing XBRL elements (tags) for every datapoint and disaggregation defined in the ESRS dislosure requirements.
• The CSRD reports will have to be mapped with XBRL Taxonomy.?

??♀? First two Sets of Explanations on ESRS Q&A Platform

The ESRS Q&A Platform provides Implementation Guidance & Explanations. Explanations showcase practical insights where ESRS standards already address queries.

• First set of 12 explainations, released on February the 6th.
• Second set of 12 explainations, released on March the 1st

?? Educational videos on SMEs drafts

On February the 20th, EFRAG launched 3 educational videos dedicated to the ESRS LSME ED and VSME ED, out for public consultation from 22 Jan 2024, covering:

• Highlights of the two SME Exposure Drafts, = glimpse into the standards;
• Presentation of the ESRS LSME Exposure Draft in detail, including the main simplifications from the first Set of ESRS
• Presentation of the VSME Exposure Draft in detail?

?? Update on Sector Standards

In 2024 EFRAG expects to finalise and launch the consultation of the first batch of sector Exposure Drafts, including:

• The general approach to sector ESRS
• The ESRS Sector classification approach, based on NACE
• Four ESRS drafts for high-impact sectors: Oil and Gas, Mining, Quarrying and Coal, Road Transport and Textile

The EU Parliament adopted the European Nature Restoration Law.

On February the 27th the European Parliament adopted the Nature Restoration Law.?

• EU countries will have to restore at least 30% of habitats in poor condition by 2030, 60% by 2040, and 90% by 2050.
• These measures aim at restoring ecosystems crucial to combat climate change and biodiversity loss
• Provisions for agricultural ecosystems can be temporarily suspended under exceptional circumstances

???? CSRD transcription law out for consultation in Italy

The Italian Ministry of Finance put the reception law of CSRD out for consultation until March the18th. After that, the directive will be transcripted not later than July the 6th.?

???? China Stock Exchange mandatory sustainability reporting

China Stock Exchanges announced mandatory sustainability reporting requirements for Companies based on Double Materiality.

• When? In 2026 based on FY25
• Who??Large listed companies
• What? Sustainability Reporting based on Double Materiality, impacts & risks, compatible with TCFD l pillars. Topics: ESG: including climate change, ecosystem and biodiversity protection, circular economy, energy use, supply chain security, anticorruption and antibribery and scope 3 GHG emissions.

That’s a wrap on February. We will be in touch again next month with our next update!

The ROSE Team