BEST PRACTICES IN EUROPEAN UNION SUSTAINABILITY REPORTING
George Florin Staicu
Speaker, EBRD PFI Relationship Manager, Coordinating Lead Author UNEP Global Environment Outlook; Global Ambassador of Sustainability; member of International Finance Corporation's GLC Directory of Training Professionals
BEST PRACTICES IN EUROPEAN UNION SUSTAINABILITY REPORTING
Excerpts from European Union website:
"Corporate sustainability reporting
EU rules require large companies and listed companies to publish regular reports on the social and environmental risks they face, and on how their activities impact people and the environment.
What the EU is doing and why
What the EU is doing and why
EU?law requires all large companies and all listed companies (except listed micro-enterprises) to disclose information on what they see as the risks and opportunities arising from social and environmental issues, and on the impact of their activities on people and the environment.
This helps investors, civil society organisations, consumers and other stakeholders to evaluate the sustainability performance of companies, as part of the?European green dealEN???.
New rules on corporate sustainability reporting:?The Corporate Sustainability Reporting Directive
On 5?January 2023, the?Corporate Sustainability Reporting Directive (CSRD)EN????entered into force. This new directive modernises and strengthens the rules concerning the social and environmental information that companies have to report. A broader set of large companies, as well as listed SMEs, will now be required to report on sustainability – approximately 50?000 companies in total.
The new rules will ensure that investors and other stakeholders have access to the information they need to assess investment risks arising from climate change and other sustainability issues. They will also create a culture of transparency about the impact of companies on people and the environment. Finally, reporting costs will be reduced for companies over the medium to long term by harmonising the information to be provided.
The first companies will have to apply the new rules for the first time in the 2024?financial year, for reports published in?2025.
Companies subject to the CSRD will have to report according to European Sustainability Reporting Standards (ESRS). The draft standards are developed by the?EFRAG, previously known as the European Financial Reporting Advisory Group, an independent body bringing together various different stakeholders. The standards will be tailored to EU?policies, while building on and contributing to international standardisation initiatives. The Commission should adopt the first set of standards by mid-2023, based on the?draft standards published by EFRAGEN????in November?2022.
The CSRD also makes it mandatory for companies to have an audit of the sustainability information that they report. In addition, it provides for the digitalisation of sustainability information.
Rules introduced by the Non-Financial Reporting Directive
The rules introduced by the?Non-Financial Reporting Directive (NFRD)EN????remain in force until companies have to apply the new rules of the CSRD. Under the NFRD, large companies have to publish information related to
These reporting rules apply to large public-interest companies with more than 500?employees. This covers approximately 11?700?large companies and groups across the?EU, including
Sustainable finance
The EU is examining how to make sustainability considerations an integral part of its financial policy in order to support the European green deal.
A Commission workstream that supports the European green deal aim of channelling private investment towards the transition to a climate-neutral economy.
Forum for dialogue between policymakers, with the aim of increasing the amount of private capital being invested in environmentally sustainable investments."
Sources:
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George Florin Staicu
Global Sustainability Ambassador; member of the International Finance Corporation - Grow Learn Connect Directory of Training Professionals; USAID banking scholarship recipient;
Graduate of the Reuters' digital journalism training course; member of Green Forum; member of the Professional Risk Managers' International Association;
Independent banking, microfinance, SME lending, GRC, CSR, ESG, GRC, UN SDGs, EU Taxonomy & Green Deal, nature-based infrastructure solutions, circular economy, green - blue inclusive sustainable development & finance, IFRS-ISSB, UNEP FI TCFD?TNFD & PRB, EFRAG, GRI, CDP, ASCOR and ISO reporting standards, blended finance, Fintech & Ecotech promoter, Public-Private Partnership promoter, gender equality, social performance, learning & development, strategic planning, risk management, team leader, senior project manager, consultant, trainer and business coach
Member of the International Finance Corporation - Grow Learn Connect "Directory of Training Professionals" (https://lnkd.in/dwPhDdqF)
Signatory of the International Finance Corporation - GLC Principles for Learning (https://lnkd.in/e7rkAn6)
Global Ambassador of Sustainability - initiative - partnership UNESCO, UN Habitat and American University of Dubai - https://lnkd.in/dxaSfHaY
Graduate of the Reuters' digital journalism training course - https://www.dhirubhai.net/pulse/glad-proud-receive-diploma-awarded-prestigious-press-company-staicu/
Graduate of a 5 weeks (19 September - 20 October 2022) post-university training course "Nature-based infrastructure for climate adaptation and sustainable development" offered by the Nature Based Infrastructure Resource Centre (NBI RC), International Institute for Sustainable Development (IISD), the Global Environment Facility (GEF) , the MAVA Foundation and the United Nations Industrial Development Organisation (UNIDO) - https://lnkd.in/dhsVViKZ
Member of the Green Forum managed by the Green Growth Knowledge Partnership led by the Global Green Growth Institute, Organisation for Economic Co-operation and Development, UN Environment Programme, United Nations Industrial Organization and The World Bank Group. - https://lnkd.in/dnecxuDb
Expert and Mentor at the "Anticorruption Solutions Through Emerging Technologies" (ASET) Tech Sprint project (June 10 - 24, 2022) a partnership between the Alliance for Innovative Regulation, the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs and the U.S. Department of Treasury’s Office of Terrorist Financing and Financial Crimes - https://lnkd.in/d5hWtNpD
Member of UpLink, the open innovation platform of the World Economic Forum - https://lnkd.in/dPCP4iaK
Post-university graduate of the Siena International School on Sustainable Development training course "Challenges and solutions of decarbonization" - Online Webinars (23 March – 20 May) sponsored by the United Nations Sustainable Development Solutions Network (UN SDSN), the Italian Alliance for Sustainable Development (ASviS); Santa Chiara Lab – University of Siena; Enel Foundation; the Italian University Network for Sustainable Development (RUS) and the SDSN Europe - https://lnkd.in/eMcHGuNG
Writer on the International Finance Corporation's Grow Learn Connect Blog - https://lnkd.in/ewYTAm4N
Owner, creator and administrator of the LinkedIn group "BEST PRACTICES IN SDGs, ESG, CLEAN ENERGY, CIRCULAR ECONOMY, GREEN SUSTAINABLE FINANCE & DEVELOPMENT" https://lnkd.in/evunwuN4
Owner, creator and administrator of the LinkedIn group "Microfinance Best Practices" https://lnkd.in/eV4ZbihH
Member of the Social Performance Task Force standards projects - responsible finance - https://lnkd.in/eWZgrY8k
Member of the United Nations Department of Economic and Social Affairs (UN DESA) Sustainable Development Goals (SDG) Group (https://lnkd.in/eRvCzun7)
and
Member of the United Nations Capital Development Fund (UNCDF) DGROUPS - https://lnkd.in/eWGP_NSR