{"id":7424,"date":"2022-11-04T11:19:19","date_gmt":"2022-11-04T10:19:19","guid":{"rendered":"https:\/\/www.muvgame.com\/?p=7424"},"modified":"2023-03-30T12:04:53","modified_gmt":"2023-03-30T10:04:53","slug":"sustainability-report-what-does-the-european-directive-require","status":"publish","type":"post","link":"https:\/\/www.muvgame.com\/en\/sustainability-report-what-does-the-european-directive-require\/","title":{"rendered":"Sustainability report: what does the European directive require?"},"content":{"rendered":"\n<p>On April 21, 2021, the European Commission published a proposed directive on sustainability reporting: <a href=\"https:\/\/finance.ec.europa.eu\/capital-markets-union-and-financial-markets\/company-reporting-and-auditing\/company-reporting\/corporate-sustainability-reporting_en\" target=\"_blank\" rel=\"noreferrer noopener\">the Corporate Sustainability Reporting Directictive (CSRD)<\/a>. According to this legislation, large European public-interest companies with more than 500 employees will have to prepare a sustainability report to disclose information regarding sustainability issues. It will replace Directive 2014\/95\/EU (Non-Financial Reporting Directive) with the aim of expanding the number of companies involved. It introduces common reporting standards and aligns them with EU regulations on sustainable finance.&nbsp;Let&#8217;s see what a sustainability report is and what kind of information it needs to contain.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is a sustainability report?<\/h3>\n\n\n\n<p>A sustainability report (sustainability reporting or balance sheet) is <strong>a financial statement published annually by a company or organization<\/strong>. In the sustainability report, the company or organization communicates the economic, environmental, and social impacts generated by its daily activities.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">What information should it contain?<\/h4>\n\n\n\n<p>According to CSRD, in the report, the company must provide information on sustainability-related issues. For instance:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>a <strong>description of the business model and business strategy<\/strong>, with particular attention to the relation they have with sustainability issues;<\/li>\n\n\n\n<li><strong>business policies and practices<\/strong> in relation to sustainability matters;<\/li>\n\n\n\n<li>relevant <strong>ESGs indicators<\/strong>;<\/li>\n\n\n\n<li><strong>sustainability-related risks<\/strong> in the business;<\/li>\n\n\n\n<li><strong>target and sustainability objectives<\/strong> of the business;<\/li>\n\n\n\n<li><strong>information on the administrative governance<\/strong> related to ESGs subjects.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Which companies will have to draft it?<\/h4>\n\n\n\n<p>The CSRD applies to <strong>all large companies and companies listed on regulated markets<\/strong>, with the exception of micro companies. It also applies to companies based outside the European Union with net sales of 150 million euros in the EU and that have at least one subsidiary or branch in the EU.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">What we know about the standards.<\/h4>\n\n\n\n<p>The European directive of April 21, 2021,&nbsp; calls for the adoption of European Sustainability Reporting Standards (ESRS).&nbsp;<\/p>\n\n\n\n<p>The European Commission commissioned the European Financial Reporting Advisory Group (EFRAG), a private association funded by the EU, to develop the reporting standards.&nbsp;<\/p>\n\n\n\n<p>EFRAG has published a <a href=\"https:\/\/www.efrag.org\/lab3\" target=\"_blank\" rel=\"noreferrer noopener\">draft set of the ESRS<\/a> open for public consultation until August 8, 2022. It covers the full range of sustainability-related topics: environmental, social, governance and cross-cutting standards.<\/p>\n\n\n\n<p>The deadline for delivery of the first set of draft ESRS to the European Commission is November 2022.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">What is the timeline for implementation?<\/h4>\n\n\n\n<p>The directive will be implemented in three phases:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>January 1, 2024,<\/strong> for companies subject to non-financial reporting. These companies will have to submit the financial year 2023 information.<\/li>\n\n\n\n<li><strong>January 1, 2025,<\/strong> for large companies that are not currently subject to the non-financial reporting directive.<\/li>\n\n\n\n<li><strong>January 1, 2026<\/strong>, for listed SMEs, small and non-complex lending institutions, and &#8220;captive&#8221; insurance companies. For SMEs, an &#8220;opt-out&#8221; will be possible until 2028.<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\">Sustainability reporting brings several benefits to companies. <\/h5>\n\n\n\n<p>It allows them <strong>to attract new investment<\/strong>, <strong>open up to new markets<\/strong>, and <strong>improve their transparency <\/strong>not only to external stakeholders but also internally. MUV&#8217;s technology certifies the CO2 reduction corresponding to the use that is made of sustainable means of transportation. Data collected from institutions, agencies, and companies help to develop mobility plans based on the needs and habits of citizens and\/or employees. Information from <a href=\"https:\/\/www.muvgame.com\/business\/en\/mobility-plans.html\">MUV&#8217;s mobility plan<\/a> can be included in the sustainability report. In fact, the plan has an impact on both the company&#8217;s indirect emissions and the well-being and health of employees and the community, thus contributing to two ESGs (environment and society).<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Sustainability Report, update 2023.<\/h4>\n\n\n\n<p>The Sustainability Reporting Directive (CSRD) was finally adopted by the European Parliament on 11 November 2022 and by the European Council on 28 November 2022 and published in the Official Journal of the European Union on 16 December 2022.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On April 21, 2021, the European Commission published a proposed directive on sustainability reporting: the Corporate Sustainability Reporting Directictive (CSRD). According to this legislation, large European public-interest companies with more [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":7427,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[12,2],"tags":[352,222,351],"class_list":["post-7424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-homepage-en","category-news-en","tag-corporate-sustainable-mobility","tag-muv-game-en","tag-sustainability-report"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Sustainability report: what does the European directive require? - MUV<\/title>\n<meta name=\"description\" content=\"What is a sustainability report, what it contains, who it involves and what the proposed directive published by the European Commission envisages.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.muvgame.com\/en\/sustainability-report-what-does-the-european-directive-require\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sustainability report: what does the European directive require? 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