EU Targets Convergence of ESG and Financial Reporting Requirements
What are the key points to note in the EC's new Corporate Sustainability Reporting Directive?
In April 2021, the European Commission ("EC") took a major step forward on its roadmap to place ESG reporting, and more specifically the reporting of sustainability information, on an equal footing with financial reporting by publishing proposals for a new Corporate Sustainability Reporting Directive ("CSRD").
In this article published in Global Banking & Finance Review, FRA experts discuss key points in the proposals, the wider need for the CSRD and the new requirements it is expected to establish for organizations.
The authors note that while the EU may be taking the lead on this, it is certainly not alone. The global direction of travel, which continues to intensify in the lead up to COP26 in Glasgow, is to give equal weight to financial and sustainability information in annual reports in order to harness the power of capital markets in the transition to a sustainable economy.
Read the full article here: www.globalbankingandfinance.com
Forensic Risk Alliance Manager, Ben Walter also contributed to this article.