The non-financial reporting Directive (2014/95/EU) requires large public interest entities with over 500 employees (listed companies, banks, and insurance companies) to disclose certain non-financial information. As required by the directive, the Commission has published non-binding guidelines to help companies disclose relevant non-financial information in a more consistent and more comparable manner.
In March 2018 the Commission published the action plan on financing for sustainable growth, with the aim of reorienting capital towards sustainable investment, managing financial risks that arise from climate change and other environmental and social problems, and fostering transparency and long-termism in financial and economic activity.
As part of that action plan the Commission committed to updating the non-binding guidelines on non-financial reporting, specifically with regard to the reporting of climate-related information. In practice, it is expected that the update will consist of a new supplement to the existing guidelines. The Commission expects to publish the new supplement on the reporting of climate-related information in June 2019.
In June 2018, the European Commission set up a technical expert group on sustainable finance (TEG) to assist in four key areas of the action plan through the development of
- a unified classification system for sustainable economic activities (taxonomy),
- an EU green bond standard,
- benchmarks for low-carbon investment strategies,
- new guidelines on the reporting of climate-related information.
In January 2019 the TEG published its report on climate-related disclosures. The TEG invited feedback on its report by 1 February 2019, and approximately 70 organisations and individuals submitted comments. The TEG has published a summary of these comments.
The Commission has taken into account the TEG report and the feedback received from stakeholders on that report and is now consulting stakeholders on the update of the non-binding guidelines before their planned adoption in June 2019. Stakeholders are invited to provide written comments by 20 March. Comments submitted after that date, and comments not submitted through the online facility, will not necessarily be taken into consideration.