Recommendations for the design of sustainability reporting standards under the Corporate Sustainability Reporting Directive (CSRD) | Umweltbundesamt

The European Non-Financial Reporting Directive requires certain large undertakings to disclose sustainability-related information. The Directive is currently being revised and renamed to Corporate Sustainability Reporting Directive (CSRD). One of the main innovations of the European Commission’s proposal for the CSRD is the development of uniform European Sustainability Reporting Standards. This Policy Paper contains specific recommendations for the standard setting process in order to advance meaningful reporting on environmental matters. The authors discuss how reporting requirements on climate-related and environmental targets, actions and performance indicators should be designed, what should be considered when addressing the Greenhouse Gas neutrality of undertakings and how the standards can ensure compatibility with existing disclosure obligations of financial market participants.