European Commission publishes FAQs to support CSRD implementation
The European Commission has published a set of frequently asked questions (FAQs) to support stakeholders in the implementation of the EU corporate sustainability reporting rules, and in particular the Corporate Sustainability Reporting Directive (CSRD). The Commission said the publication is part of its continuous effort to make the EU sustainable finance framework more usable for companies and reduce the administrative burden on them.
According to the Commission, the FAQs take into account input received from companies and cover issues such as the scope of the rules, application dates, and exemptions. For example, they clarify when companies may use estimates rather than having to collect value chain information from suppliers or partners.
Commissioner for Financial Services, Financial Stability and Capital Markets Union, Mairead McGuinness, said: “The EU has taken major steps in building a comprehensive sustainable finance framework over the past six years, encouraging companies to embark on their transition paths. Our focus now is to ensure that our tools are usable and effective, while continuing to reduce the administrative burden on companies.”
McGuinness added: “The FAQs provide important clarifications and will further reduce the need for companies to seek external legal or consultancy advice for applying the rules. Companies are working hard to be more sustainable, which helps strengthen their competitiveness in the medium term, and I aim to ensure that our framework assists them in that process.”
The CSRD entered into force on 5 January 2023, and the first set of companies subject to the new rules must start reporting in 2025, for the financial year 2024.
The FAQs clarify the interpretation of certain provisions on sustainability reporting introduced by the CSRD into the Accounting Directive, the Audit Directive, the Audit Regulation, and the Transparency Directive, with the aim of facilitating their implementation by undertakings, said the Commission, adding that the FAQs also clarify certain provisions of the Sustainable Finance Disclosures Regulation.
“Through this set of FAQs, the Commission intends to facilitate the compliance of stakeholders with the regulatory requirements in a cost-effective way and to ensure the usability and comparability of the reported information on sustainability,” the Commission said. “By providing greater clarity and certainty to companies, this set of FAQs will contribute to the Commission’s objective of reducing administrative burdens on undertakings associated with sustainability reporting.”
The FAQs can be found here.
