EFRAG continues outreach on ESRS Exposure Drafts
In June, the European Financial Reporting Advisory Group (EFRAG) continued with its outreach campaign holding a total of 7 geographical outreach events and 3 educational sessions. These were held jointly with stakeholders and financial institutions from France, Germany, the Netherlands, Denmark, the Nordic countries, Austria, Poland. Outreach will continue until mid-July with eight more events scheduled. The recordings of the sessions are available on EFRAG’s website.
EFRAG’s role confirmed as technical advisor to the EC on sustainability repoting
With the EU co-legislators reaching a political agreement on the CSRD proposal, EFRAG became officially the technical advisor in sustainability reporting to the EC. EFRAG published a statement welcoming the confirmation of its role.
MEPs object to the EC’s Complimentary Delegated Act
The EP’s Committee on Economic and Monetary Affairs (ECON) and the Environment, Public Health and Food Safety (ENVI) Committee held a joint vote on a motion for resolution objecting to the EC’s complementary Delegated Act (DA). The DA proposes including nuclear energy and fossil gas in the EU Taxonomy as transitional activities. MEPs objected with 76 votes in favour, 62 against and 4 abstentions. Plenary vote on the resolution is scheduled on 6 July. The EP and Council have until 11 July to veto the DA.
Council agrees its position on ESAP
The Council has agreed its position on the European Single Access Point (ESAP) proposal. The proposal aims to improve public access to entities’ financial and non-financial information.
ESAP platform will contain already established types of data, as well as publicly available information, including:
- (consolidated) annual financial statements
- (consolidated) management reports
- audit reports
- reports on payments to governments
ESMA establishes a Consultative Working Group on sustainable finance
The European Securities and Markets Authority’s (ESMA) Consultative Working Group (WG) on sustainable finance consists of 26 members selected for a two-year renewable term. The WG was established under the Coordination Network on sustainability with a mandate to:
- promote the coordination of regulatory, supervisory and enforcement initiatives across securities regulators in the EU and across ESMA activities in sustainable finance
- contribute to all ESMA’s work on sustainable finance matters, in relation to incorporation of the Environmental, Social, and Governance (ESG) factors in the investment advice and disclosure requirements
- indicate any potential threats that are relevant to ESMA’s objectives of ensuring investor protection, orderly functioning and integrity of financial/commodity markets and to stability, to the relevant Standing Committee
ESMA presents its finding on ESG ratings
ESMA published a letter to the EC presenting its findings from the call for evidence on ESG ratings to gather information on the market structure for ESG ratings providers in the EU. ESMA identified 59 ESG rating providers currently active in the EU. The findings indicate:
- there is a small number of very large non-EU providers, and many significantly smaller EU entities
- ESG ratings users are typically contracting for these products on an investor-pays basis from several providers simultaneously
- entities covered by ESG ratings dedicate at least some level of resourcing to their interactions with ESG rating providers
EBF position paper on the CSDDD
The European Banking Federation (EBF) published its views on the Corporate Sustainability Due Diligence Directive (CSDDD) asking for more clarity on:
- obligations and definitions, e.g., established business relationships
- consistency with Taxonomy Regulation, Sustainable Finance Disclosure Regulation (SFDR) and CSRD
- directors’ duties
They also oppose the inclusion of civil liability.