Big news!

Yesterday the European Commission adopted a proposal for a Corporate Sustainability Reporting Directive (CSRD), which would amend the existing reporting requirements of the NFRD.

This means that about 50.000 companies (compared to the 11.000 today) would have to report on sustainability pursuant to the CSRD.

The proposal includes:
* extends the scope to all large companies and all companies listed on regulated markets (except listed micro-enterprises)
* requires the audit (assurance) of reported information (‘limited’ assurance)
* introduces more detailed reporting requirements, and a requirement to report according to mandatory EU sustainability reporting standards
* requires companies to digitally ‘tag’ the reported information, so it is machine-readable and feeds into the European single access point envisaged in the capital markets union action plan.

The EU Taxonomy is thé guideline for companies that helps report according to the CSRD- it's the first set of technical screening criteria to define which activities contribute substantially to two of the environmental objectives under the Taxonomy Regulation: climate change adaptation and climate change mitigation.

And the EU Taxonomy highlights the clear function of Life Cycle Assessments (LCA) in environmental impact transparency.

All of this is part of reaching the EU's Green Deal: reaching carbon neutrality in 2050.

What are your thoughts on these developments?