EFRAG SRB Chair announced
EFRAG announced Patrick de Cambourg as the incoming SRB Chair and welcomed three new members to the Board. Accountancy Europe warmly congratulated Patrick de Cambourg.
EP votes to approve CSRD political agreement
The European Parliament (EP) adopted the Corporate Sustainability Reporting Directive (CSRD) with 525 votes in favour, 60 votes against and 28 abstentions on 10 November.
The Council is expected to adopt the proposal on 28 November, after which the text will be signed and published in the EU Official Journal. The CSRD will come into force 20 days after its publication.
MEP Lara Wolters publishes CSDDD draft report
MEP Lara Wolters (S&D/Netherlands), rapporteur on the Corporate Sustainability Due Diligence Directive (CSDDD), issued her draft report on the new legislation. Regarding verification and audit, no major changes were introduced. MEP Wolters replaced the word ‘auditor’ with ‘entity’ in the definition of ‘independent third-party verification’ to specify that the market would be open. Other amendments include the following:
- a wider scope of entities than in the original proposal and inclusion of the entire value chain
- deletion of the concept of an ‘established business relationship’ and introduction of risk prioritization
- a more meaningful inclusion of stakeholders’ consultation throughout the due diligence process
- a more active role of the Board in aligning with the transition to a sustainable economy
Outcome of climate change talks at COP27
EU agrees to COP27 compromise to keep Paris Agreement alive and protect the most vulnerable to climate change by putting in place new funding arrangements. The EP official delegation’s Chair Bas Eickhout stated that the European Union (EU) had to fight to maintain last year’s level of ambition, but showed leadership on ‘loss and damage’ fund. MEPs highlighted there is still room for action and applauded the renewed cooperation between the United States (US) and China.
ESAs joint call for evidence on greenwashing
The three European Supervisory Authorities (ESAs) are gathering input from key stakeholders. The aim is to assess how they understand the key features, drivers and risks associated with greenwashing and collecting examples of potential greenwashing practices. This follows the EC request for input on several aspects of greenwashing and related risks, as well as supervision and enforcement of sustainable finance policies.
Stakeholders can provide their response by 10 January 2023.
Update on ESAs joint activities
ESAs published Questions and answers on the Sustainable Finance Disclosure Regulation (SFDR) delegated regulation.
In their letter to the EC, ESAs communicated that they would not be able to meet the original deadline of 28 April 2023 to review the indicators of principle adverse impacts of the SFDR. Therefore, they notified a delay of up to 6 months for this mandate.
ESMA’s common enforcement priorities for 2022 annual reports
The European Securities and Markets Authority (ESMA) issued its annual public statement setting out the European common enforcement priorities for the 2022 annual financial reports of issuers admitted to trading on European Economic Area (EEA) regulated markets. Priorities related to non-financial statements are:
- climate-related matters
- taxonomy-related disclosures
- reporting scope and data quality
updates on its upcoming activities and priorities
In their work programme for 2023, the European Banking Authority (EBA) identifies transition risks as one of the key topics, with digital transformation and ESG factors and risks as focus areas. The main conclusions are:
- transition to a sustainable and digitalised economy will require large investments
- institutions should be able to identify ESG risks and properly reflect them in their risk appetite
- competent authorities should keep working on reflecting ESG risks in their business strategies, governance and risk management processes
This aligns with the statement issued by the EBA during the COP27, highlighting sustainability in the banking sector, EBA’s work priorities and its organisation.