Commission approves European standards for sustainability reporting

This week, the Commission approved the final text of the European Sustainability Reporting Standards. They will be applied by European companies that report on their performance in climate, sustainability and sustainable finance.

The Corporate Sustainability Reporting Directive (CSRD), which the standards are based on, entered into force at the beginning of 2023. The Commission has now issued a set of specific rules that companies will have to follow when reporting. It announced the move on its website.

The standards will apply to companies required under the new reporting directive to publish sustainability reports — primarily large companies, but also listed small and medium-sized enterprises. According to the Commission, this represents another step towards the EU’s transition to a sustainable economy.

Commissioner for Financial Services, Financial Stability and Capital Markets Union Mairead McGuinness said: "The standards we have adopted today are ambitious and an important tool supporting the EU’s sustainable finance agenda. They strike the right balance between limiting the reporting burden and appropriately demonstrating companies’ efforts to meet the Green Deal agenda. This enables them to access sustainable finance."