Abteilung für
Accounting & Reporting Hauptmenü öffnen
Außenansicht des D3 Gebäudes

SuRe: Regulations

Attention! This website is still an ongoing project. Therefore, the content is currently under development.

Here you can find an overview of the current state of sustainability reporting regulations in the EU.

Please cite this register in conjunction with the following article:
Hummel, K., Jobst, D., 2023. An Overview of Corporate Sustainability Reporting Regulations in the European Union. https://ssrn.com/abstract=3978478.

Regulations

NFRD

NFRD

Directive 2014/95/EU of the European Parliament on the disclosure of non-financial and diversity information by certain large undertakings and groups.

learn more
CSRD

CSRD

The Directive 2022/2464 enhances, modernizes and harmonizes regulations regarding to the disclosure of social and environmental information by companies. Additionally, the scope of companies required to report on sustainability has been expanded to include a wider range of large enterprises as well as listed SMEs.

learn more
SFDR

SFDR

Regulation (EU) 2019/2088 of the European Parliament on sustainability‐related disclosures in the financial services sector, with the aim of increasing transparency regarding the sustainability of financial products.

learn more
EU Taxonomy

EU Taxonomy

The EU taxonomy is a classification system, establishing a list of environmentally sustainable economic activities. It could play an important role helping the EU scale up sustainable investment and implement the European green deal.

learn more
Pillar 3

Pillar 3

Pillar 3 of the Basel framework, as published by the Basel Committee on Banking Supervision, seeks to promote market discipline through regulatory disclosure requirements. 

learn more

BACK TO OVERVIEW 

This table provides a comparison of the five EU regulatory initiatives along key parameters:

 NFRD (Directive 2014/95/EU)CSRD (Directive (EU) 2022/2464)Taxonomy Regulation (Regulation (EU) 2020/852)SFDR (Regulation (EU) 2019/2088)Pillar 3 disclosures (Regulation (EU) 2019/876)
ScopePIEs with more than 500 employeesLarge EU companies and listed SMEs1, certain branches and subsidiaries of third-country undertakingsScope of the NFRD, SFDR and CSRD; regulators with regard to policy measuresFinancial market participants and advisersLarge credit institutions and certain investment firms
Objectives- To improve the relevance, consistency and comparability of sustainability disclosure

- To improve capital market efficiency

- To stimulate change toward a sustainable global economy		- To improve sustainability disclosure

- To stimulate change toward a sustainable global economy		- To establish a classification of environmentally sustainable activities

- To enhance comparability of reporting on these activities and prevent greenwashing

- To stimulate sustainable financing and investment activities		- To enhance and harmonize transparency regarding the sustainability of financial products

- To avoid ‘greenwashing’

- To stimulate sustainable financing and investment activities

- To strengthen investor protection		- To ensure prudential disclosures on ESG risks

- To enhance the comparability of sustainability disclosure

- To promote market discipline in the financial sector
MaterialityDouble materialityDouble materialityNo materiality focusDouble materialityDouble materiality
MattersEnvironmental, social, employee, human rights, corruption, briberyEnvironmental, social, employee, human rights, corruption, briberyEnvironmentalEnvironmental, climate, social, employee, human rights, corruption, briberyEnvironmental, social and governance (ESG)
Disclosure requirementsRelated to matters:

- Description of the business model
- Description and outcome of policies related to matters including implemented due diligence processes
- Risks related to matters and risk management
- Relevant KPIs		Related to matters:

- Description of the business model and strategy 
- Description of related targets, their achievement progress and if they are based on scientific evidence
- Role and expertise of administrative, management and supervisory bodies
- Sustainability-related policies                              - Sustainability-linked investment schemes 
- Description of due diligence processes and PAIs and mitigating actions            - Sustainability-related risks and risk management 		Financial undertakings:

- KPIs by asset managers
- KPIs by credit institutions
- KPIs by investment firms
- KPIs by insurance and reinsurance firms

Nonfinancial undertakings:

- Proportion of turnover, capex and opex associated with environmentally sustainable activities		Entity-level disclosures:

- Information on policies regarding sustainability risk integration, consideration of PAIs, and integration of sustainability risks in remuneration policies

Product-level disclosures:

- Precontractual and website disclosures and information in periodic reports		Quantitative disclosures:

- Climate-change transition risks
- Climate-change physical risks
- Mitigation actions

Qualitative disclosures:

- Regarding ESG risks: governance arrangements, business model and strategy, risk management
Granularity of informationNo specific KPIs are mandated; further guidance provided in nonbinding guidelinesSpecific disclosure requirements are defined in the ESRSSpecific disclosure requirements in combination with the NFRD; technical screening criteria are defined in delegated actsSpecific disclosure requirements are defined in the technical standardsSpecific disclosure requirements including specific KPIs for ESG risks that are defined in the technical standards
Stakeholder focusBroadBroadBroadInvestorsInvestors and stakeholders
Legal character (authority)Transposition of directive into national legislationTransposition of directive into national legislationDirect applicability of regulation and delegated acts (technical screening criteria)Direct applicability of regulation and delegated acts (regulatory technical standards)Direct applicability of regulation and implementing acts (implementing technical standards)
Location of informationAnnual report or a separate reportAnnual report (digital tagging)According to the requirements of the NFRD, CSRD and SFDRWebsite, precontractual disclosure and periodic reportingAnnual report or a separate Pillar 3 report
TimelineEffective for financial year 2017 onward until financial year 2023First application for financial year 2024 onward, with a gradual phasing inRequirements for climate-related objectives are applicable for financial year 2021 onward, requirements for other environmental objectives are applicable for financial year 2022 onwardFirst disclosure requirements applicable from March 2021, with a gradual phasing in of further requirementsApplicable from June 2022 and therefore first application for financial year 2022

1 For SMEs, simpler reporting requirements and an extended timeline apply