Quality disclosure requirements critical to Europe’s €1 trillion sustainable investment plan
The European Green Deal becomes a global game changer that other economies should follow. With ambitious legislative changes backed by €1 trillion investment over the next decade, the EU is signalling leadership in efforts to advance sustainable development and tackle climate change.
In a statement on 28 January, European Commission Executive Vice-President Valdis Dombrovskis provided details on the implementation of the Green Deal Investment Plan – including strengthening sustainability reporting by companies. He set out that:
- The EU’s Non-Financial Reporting Directive is to be reviewed, with new requirements for companies to increase disclosures on sustainability risks and opportunities.
- The EU will establish “clear reporting standards” based on the “best and most widely accepted elements of what exists”.
- The Green Deal has to be part of wider global efforts and funding commitments in order to “scale up sustainable finance at the level that the world needs”.
Read in full the statement by Vice-President Dombrovskis, who leads the Financial Stability, Financial Services and Capital Markets Union (FISMA – the department responsible for EU banking and finance policy). He has appointed the European Financial Reporting Advisory Group (EFRAG) to begin preparatory work on revising the Non-Financial Reporting Directive.