The draft delegated act for the Corporate Sustainability Reporting Directive has just been published.
The European Commission appears to have scaled back its ambitions for the CSRD by making key modifications to the first draft proposed by the EFRAG.
Here are the key ones:
- The mandatory information to be disclosed is limited to the « General disclosure » standard in ESRS 2. The previous version included mandatory reporting of the standards related to the climate and to the firm's employees.
- Flexibility has been introduced regarding some mandatory datapoints, including the financial effects of sustainability risks and the materiality assessment process.
- All data points will be subject to materiality assessment, with the exception of those in the « General disclosure » standard.
- Disclosure on corruption, bribery and the protection of whistleblowers has been modified to better comply with existing regulation.
- The implementation schedule has been revised, delaying the disclosure of a range of datapoints by one or two years, especially for smaller companies of less than 750 employees.
The European Commission justified these modifications by saying they were « ensuring proportionality and facilitating the correct application of the standards by undertakings ».
This new act is open for consultation until July 7th, see link in the comments to submit a feedback.