EU body sets out draft sustainability disclosure standards

(EurActiv, 4 May 2022) Companies will have to set a much broader range of sustainability targets under draft new European Union reporting standards, environmental impact body CDP said on Tuesday (3 May).

Authorities across the world are writing reporting standards to combat greenwashing, or companies exaggerating their green credentials to attract investors, who have poured trillions of dollars into sustainable assets.

The European Financial Reporting Advisory Group (EFRAG) set out its first draft sustainability standards late on Friday for public consultation. Final standards will be sent to the European Union’s executive European Commission by November for adoption.

The norms will be used by listed companies across the EU to implement mandatory environment, social and governance (ESG) disclosure requirements under the bloc’s new Corporate Sustainability Reporting Directive.

“The EU sustainability reporting standards are set to be the most ambitious standards globally,” said Mirjam Wolfrum, director of policy engagement in Europe for CDP, adding that around half of reported emissions in Europe are not covered by targets.

CDP has emerged as the world’s biggest repository of environmental data submitted on a voluntary basis by companies, which are under pressure from their shareholders to disclose how they plan to navigate the transition to a lower-carbon future.

CDP said European companies will have to report on a far wider range of environmental issues under the draft standards than most are used to

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EurActiv, 4 May 2022: EU body sets out draft sustainability disclosure standards