ESG (Environmental, Social, Governance) and Sustainable Finance continue to be at the forefront of the EU’s regulatory agenda, as the EU remains dedicated to advancing its Sustainable Finance Action Plan and driving forward a range of initiatives under the umbrella of the European Green Deal.
Agencies can play a crucial role in promoting sustainable products and services, as well as raising awareness about environmental issues. At the same time, they must ensure that their own operations and practices are sustainable and aligned with EU regulations.
In response to the increasingly prominent issue of “greenwashing,” there has been notable progress in Corporate Due Diligence, Reporting, Taxonomies, Product Labelling, and ESG data and ratings.
On April 2021, the EU Commission introduced a comprehensive and ambitious set of policies, with the goal of enhancing the flow of funding for sustainable initiatives across the EU.
Among these initiatives, the EU has introduced regulations related to Sustainable Finance, which will impact the way that agencies secure funding and invest in projects.
Starting on January 5th, 2023, the Corporate Sustainability Reporting Directive (CSRD) became effective within the EU. The directive is the latest effort by the EU to enhance the quality and comparability of corporate ESG disclosures, encompassing environmental, social, and governance factors under the term “sustainability.” The CSRD significantly expands both the scope of companies covered under the EU’s ESG reporting framework and the level of detail and comprehensiveness of the ESG disclosures required to be disclosed.
At EACA we are closely following the European Commission’s initiative on Sustainability Compliance, for which you can find our latest Policy Brief here.