The European Banking Federation on the latest developments in the legislative process of the proposal for a corporate sustainability reporting directive

The European Banking Federation on the latest developments in the legislative process of the proposal for a corporate sustainability reporting directive
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BRUSSELS, 25 February 2022 – The EBF reiterates its support for the proposal for the Corporate Sustainability Reporting Directive, which will be a key enabler in ensuring financial institutions are able to assess the sustainability profile of their portfolios and allocate capital effectively to serve the goals of the European Green Deal.

• The EBF continues to support the extended scope suggested by the Commission (including large undertakings with over 250 employees and listed SMES) as sustainability reporting will and should become a regular practice. To enable and facilitate access to investment and finance, it will be critical to ensure minimum burden for all reporting undertakings, but this can only be achieved through adequate support, training, tools, and simplified reporting standards for SMEs
• Coherence is fundamental both in terms of content of the reported information and the timelines. Any contemplation to postpone reporting obligations for companies will have to be carefully considered in conjunction with all other relevant EU legislation
• To reduce the reporting burden for financial and non-financial entities, we support the exemption of subsidiaries from sustainability reporting so long as the parent undertaking reports at consolidated level with sufficient granularity
• A level playing field should be ensured by requiring sustainability reporting by extra-EU undertakings operating in the European Union
• It is fundamental that legislators closely evaluate the implications of a mandatory separation of financial and sustainability audit. Financial and sustainability performance will progressively become the two sides of the same coin and such separation may wrongfully provide the impression that the two are not tightly interlinked

For more information:

Alexia Femia, Sustainable Finance Policy Adviser,  a.femia@ebf.eu