Issue link: https://maltatoday.uberflip.com/i/1471907
15 maltatoday | WEDNESDAY • 29 JUNE 2022 EUROPE THE European Parliament and European Council have reached a provisional political agreement on the terms of the EU's pro- posed Corporate Sustainability Reporting Directive (CSRD). The CSRD will extend the current sustainability re- porting requirements in the EU (namely those under the Non-Financial Reporting Di- rective (NFRD)), to include more companies and topics and to require more detailed disclosures, and represents a key piece of legislation in the international trend towards in- creasing sustainability-related reporting by companies. The European Parliament in- dicated this international aim in its press release announcing the agreement, stating that the CSRD "aims to end greenwash- ing and lay the groundwork for sustainability reporting stand- ards at global level." While the full text of the agreed version of the CSRD has not yet been made public, the press releases from the Euro- pean Parliament and Council do shine some light on the key provisions that will likely be in- cluded in the final document. Which companies will be in scope of the CSRD? Based on the European Coun- cil's press release, the CSRD will apply to: • all "large" companies in the EU;[1] • all companies listed on EU regulated markets; and • non-European companies that generate a net turn- over of at least €150 mil- lion in the EU and which have at least one subsidi- ary or branch in the EU. The inclusion of certain non-European companies marks a considerable expan- sion in the scope of the CSRD from the proposed scope that was included in the European Commission's initial proposal, first published in 2021. When will the CSRD require- ments enter into effect? • 1 January 2024 for com- panies already subject to the NFRD • 1 January 2025 for large companies that are not presently subject to the NFRD • 1 January 2026 for listed small and medium-sized enterprises, small and non-complex credit in- stitutions, and captive in- surance undertakings What are the key requirements of the CSRD? The specific reporting re- quirements of the CSRD will be set out in separate Euro- pean Sustainability Reporting Standards (ESRS), a series of crosscutting reporting stand- ards that will provide specific disclosure requirements and guidance on a variety of ESG topics. While political agreement has now been reached on the CSRD, exposure drafts of the ESRS are still undergoing pub- lic consultation, which will end on 8 August 2022. The specific sustainability reporting requirements that companies will face under the CSRD will become clearer once the ESRS are finalised. The Parliament's and Coun- cil's press releases did make clear, however, that reporting under the CSRD must be ac- credited and verified by an in- dependent auditor or certifier, who will be required to confirm that the sustainability informa- tion complies with certification standards to be adopted by the EU. Non-EU reporting companies must also be certified, either by an EU auditor or one estab- lished in a third country. Next steps The Parliament and Coun- cil must formally approve the political agreement before it is published in the Official Jour- nal of the EU. It will enter into force 20 days after publication and its provi- sions must be integrated into Member States' national laws within 18 months from that date. European Parliament and Council reach political agreement on CSRD These articles are part of a content series called Ewropej. This is a multi-newsroom initiative part-funded by the European Parliament to bring the work of the EP closer to the citizens of Malta and keep them informed about matters that affect their daily lives. These articles reflect only the authors' view. The European Parliament is not responsible for any use that may be made of the information it contains. The Corporate Sustainability Reporting Directive expands the existing sustainability reporting requirements and brings more companies under its scope OVER 400 Members of the European Union's Parliament have shown their full support for the extension of the EU Digital COVID Certificate for an- other 12 months, for both EU citizens and third-country nationals. The Parliament has endorsed the deal with the Member States to pro- long the legal framework of the EU Digital COVID Certificate, and the same has been supported by 453 members, while 119 were against, and 19 abstained for keeping the frame- work in place for EU citizens. Regard- ing keeping the scheme in place for third-country nationals, 454 voted in favour, 112 against, and 20 absten- tions. While the existing scheme was set to expire tomorrow, the newly approved one will remain effective until June 2023. However, the new test enables the EU Commission to put the scheme to an end after six months if the same is no longer deemed necessary, Schen- genVisaInfo.com reports. "The European Commission will as- sess the impact of the EUDCC on free movement and fundamental rights by the end of 2022, and can propose its repeal, if the public health situation allows, based on the latest scientif- ic advice from the European Centre for Disease Prevention and Con- trol (ECDC) and the Health Security Committee," the Parliament notes in a press release noted following the ple- nary. The newly approved text insists that the EU countries must refrain from imposing disproportionate or discrim- inatory restrictions on the freedom of movement through the scheme. Commenting on the prolongation of the scheme, the rapporteur on the is- sue Juan Fernando López Aguilar, said that the scheme had been extended in order to make sure that the citizens of the block will continue to benefit from the freedom of movement. MEPs give final nod to EU COVID Certificate, but don't want it to be used for "discriminatory restrictions to free movement"