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Ares(2023)4009405 - 09/06/2023

EUROPEAN
COMMISSION

Brussels, XXX
[…](2023) XXX draft

COMMISSION DELEGATED REGULATION (EU) …/...

of XXX

supplementing Directive 2013/34/EU of the European Parliament and of the Council as

regards sustainability reporting standards

(Text with EEA relevance)

This draft has not been adopted or endorsed by the European Commission. Any
views expressed are the preliminary views of the Commission services and may not
in any circumstances be regarded as stating an official position of the Commission.

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 EXPLANATORY MEMORANDUM

1. CONTEXT OF THE DELEGATED ACT

The Accounting Directive (2013/34/EU1) as amended by the Corporate Sustainability
Reporting Directive (CSRD - 2022/24642) requires large companies and listed small and
medium-sized companies (SMEs), as well as parent companies of large groups, to include in a
dedicated section of their management report the information necessary to understand the
company’s impacts on sustainability matters, and the information necessary to understand
how sustainability matters affect the company’s development, performance and position.3
This information must be reported in accordance with European Sustainability Reporting
Standards (ESRS), to be adopted by the Commission by means of delegated acts that must
specify the content and, where relevant, the structure to be used to present that information.4
This information shall include information related to short-, medium- and long-term time
horizons, as applicable,5 and it shall contain6: (i) a brief description of the undertaking’s
business model and strategy; (ii) a description of the time-bound targets related to
sustainability matters set by the undertaking; (iii) a description of the role of the
administrative, management and supervisory bodies with regard to sustainability matters, and
relevant expertise and skills or access to them; (iv) a description of the undertaking’s policies
in relation to sustainability matters; (v) information about the existence of incentive schemes
linked to sustainability matters; (vi) a description of the due diligence process implemented by
the undertaking with regard to sustainability matters; (vii) the principal actual or potential
adverse impacts connected with the undertaking’s own operations and with its value chain;
(viii) any actions taken by the undertaking in relation to actual or potential adverse impacts,
and the result of such actions; (ix) a description of the principal risks to the undertaking
related to sustainability matters; (x) indicators relevant to the required disclosures. Where
applicable, it shall contain information about the undertaking’s own operations and about its
value chain, including its products and services, its business relationships and its supply
chain.

1
Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual
financial statements, consolidated financial statements and related reports of certain types of
undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and
repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).
2
Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending
Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU,
as regards corporate sustainability reporting (OJ L 322, 16.12.2022, p. 15). This Directive strengthened
and revised the non-financial disclosure requirements introduced in the Accounting Directive by
Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending
Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large
undertakings and groups (Non-Financial Reporting Directive – NFRD).
3
The sustainability reporting requirements for large undertakings and listed SMEs are set out in Articles
19a and 29a Accounting Directive. The Accounting Directive as amended by the CSRD also requires the
branches or subsidiaries of certain non-EU companies to report certain sustainability information (Article
40a). The reporting obligation on these branches and subsidiary will apply as from financial year 2028
and the information to be reported will be specified in separate standards not covered by this delegated
act.
4
Article 29b(1), first subparagraph, Accounting Directive.
5
Articles 19a(2), second subparagraph, and 29a(2), second subparagraph Accounting Directive.
6
Articles 19a(2) and (3) and 29a(2) and (3) Accounting Directive.

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 The sustainability reporting standards must also meet the following requirements: (i) ensure
the quality of reported information7; (ii) avoid imposing a disproportionate administrative
burden on undertakings8; (iii) specify the information that undertakings are to disclose about
specific environmental, social and human rights, and governance factors9; (iv) specify the
forward-looking, retrospective, qualitative and quantitative information, as appropriate, to be
reported by undertakings10; (v) take account of the difficulties that undertakings may
encounter in gathering information from actors throughout their value chain11; (vi) specify
disclosures on value chains that are proportionate and relevant to the capacities and the
characteristics of undertakings in value chains, and to the scale and complexity of their
activities12; (vii) not specify disclosures that would require undertakings to obtain information
from SMEs in their value chain that exceeds the information to be disclosed pursuant to the
sustainability reporting standards for SMEs13; (viii) take account, to the greatest extent
possible, of the work of certain global standard-setting initiatives and of certain existing
standards and frameworks, as well as the requirements stemming from specific pieces of
Union acts14.
The Commission must adopt these standards taking into consideration the technical advice
provided by EFRAG15, a non-profit association established under Belgian law that serves the
European public interest in both financial reporting and sustainability reporting by developing
and promoting European views in the field of financial and sustainability reporting. EFRAG’s
technical advice must also meet certain requirements16. In 2022, EFRAG modified its
governance to reflect its new role in the development of ESRS. In particular, it revised its
membership to reflect a balance between stakeholders, including undertakings, investors,
auditors, trade unions, civil society, academics and national accounting standard-setters.

7
Article 29b(2), first subparagraph, Accounting Directive.
8
Article 29b(2), first subparagraph, Accounting Directive.
9
Article 29b(2), second subparagraph, Accounting Directive.
10
Article 29b(3) Accounting Directive.
11
Article 29b(4) Accounting Directive.
12
Article 29b(4) Accounting Directive.
13
Article 29b(4) Accounting Directive.
14
Article 29b(5) Accounting Directive. The Union legislation that must be taken into consideration is the
Sustainable Finance Disclosures Regulation (SFDR - 2019/2088) and related delegated acts, the relevant
delegated acts adopted under the Taxonomy Regulation (2020/852), the relevant delegated acts adopted
under the Benchmark Regulation (2016/1011), certain implementing acts adopted pursuant to the Capital
Requirements Regulation (CRR - 575/2013), Commission Recommendation on the life cycle
environmental performance of products and organisations (2013/179/EU), Directive on greenhouse gas
emission allowance trading (2003/87/EC), Regulation on climate neutrality (2021/1119), EMAS
Regulation (1221/2009), Whistleblowing Directive (2019/1937).
15
Article 49(3b) Accounting Directive. EFRAG was previously called the European Financial Reporting
Advisory Group. In 2022 it changed its name to simply EFRAG.
16
Article 49(3b) Accounting Directive specifies the following requirements for EFRAG’s technical advice:
(i) it has been developed with proper due process, public oversight and transparency, with the expertise
and balanced participation of relevant stakeholders, and with sufficient public funding to ensure its
independence; (ii) it has been developed on the basis of a work programme on which the Commission has
been consulted; (iii) it is accompanied by cost-benefit analyses that include analyses of the impacts of the
technical advice on sustainability matters; (iv) it is accompanied by an explanation of how it takes
account of the work of certain global standard-setting initiatives and of certain existing standards and
frameworks, as well as the requirements stemming from specific pieces of Union acts; (v) participation in
EFRAG’s work at technical level is based on expertise in sustainability reporting and is not conditional
on a financial contribution; (vi) the accompanying documents are submitted together with the technical
advice.

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 The Accounting Directive requires the Commission to adopt a first set of sustainability
reporting standards by 30 June 202317. These standards must specify the information that
companies are to report in accordance with Article 19a(1) and (2), and Article 29a(1) and (2)
of the Accounting Directive, including at least the information that financial market
participants need in order to comply with the disclosure obligations of the Sustainable Finance
Disclosures Regulation (SFDR - 2019/2088)18.
EFRAG submitted to the Commission its technical advice on the first set of standards on 22
November 202219. This technical advice was developed on the basis of a work programme on
which the Commission was consulted on in December 2021. It is accompanied by a cost-
benefit analysis that includes an analysis of the impacts of the technical advice on
sustainability matters, by a note on the due process followed by EFRAG in the development
of its technical advice, and by an explanation of how the technical advice takes account of the
work of certain global standard-setting initiatives and of certain existing standards and
frameworks, as well as the requirements stemming from specific pieces of Union acts.
This delegated act adopts the first set of European Sustainability Reporting Standards (ESRS)
that undertakings shall use to carry out their sustainability reporting in accordance with
Articles 19a and 29a of the Accounting Directive. The ESRS in this first set are sector-
agnostic, meaning that they apply to all undertakings under the scope of the CSRD regardless
of which sector or sectors the undertaking operates in.
In future years the Commission is expected to adopt additional delegated acts for additional
sets of standards. The CSRD requires the Commission to adopt by June 2024: sector-specific
standards, proportionate standards for listed SMEs, and standards for non-EU companies.

2. CONSULTATIONS PRIOR TO THE ADOPTION OF THE ACT

Prior to the submission of its technical advice to the Commission, EFRAG organised multiple
outreach events with various stakeholder groups from May to July 2022, and ran a public
consultation on the 13 draft ESRS Exposure Drafts developed by the EFRAG Project Task
Force from April to August 2022. In the light of the comments received during these
consultations, EFRAG revised the Exposure Drafts addressing stakeholders’ concerns. The
main areas of modification were:
(a) A significant reduction in the number of disclosure requirements and datapoints.
EFRAG reduced the number of disclosure requirements by 40% and the number of
individual data points by about 50%.
(b) Taking further account of global reporting standards, in particular to ensure as much
interoperability as possible with the future standards being developed by the
International Sustainability Standards Board and with the standards of the Global
Reporting Initiative.
(c) A more central role for the materiality assessment process, and in particular
removing the principle that all information prescribed in the standards should be
considered material for the undertaking unless demonstrated otherwise (the so-called
“rebuttable presumption”). According to EFRAG’s technical advice submitted to the

17
Article 29b(1), second subparagraph, of the Accounting Directive.
18
Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on
sustainability‐related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1).
19
EFRAG’s first set of standards is available at https://www.efrag.org/lab6.

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 Commission, all disclosures would be subject to materiality assessment by the
reporting undertaking, with the exception of:
i) All the disclosure requirements and datapoints in the “General disclosures”
standard, which specifies essential information to be disclosed irrespective of
which sustainability matter is being considered.
ii) All the disclosure requirements and datapoints in the climate standard, which
would be mandatory for all undertakings under scope.
iii) All the disclosure requirements and data points that are included in the
standards because they directly correspond to the information needs of other
parties to meet their own disclosure requirements under separate pieces of
legislation. This refers specifically to information that financial markets
participants need to meet their disclosure requirements on principal adverse
impacts under the Sustainable Finance Disclosure Regulation; the
sustainability information that benchmark administrators need to meet their
disclosure requirements under the Benchmarks Regulation; and the
information that financial institutions need to meet their so-called “pillar 3”
disclosure requirements under the Capital Requirements Regulation. These
disclosure requirements and datapoints would also be mandatory for all
undertakings under scope.
iv) A number of disclosure requirements and data points relating to the
undertaking’s own workforce, which would be mandatory for undertakings
that have more than 250 employees.
(d) The phasing-in of a number of disclosure requirements considered more challenging
for undertakings. Undertakings would be allowed to omit metrics (data) on their
value chains for a period of 3 years. In addition, there would be certain phase-ins of
between 1 and 3 years for certain information on the following issues: the financial
effects on the undertaking arising from climate; breakdown of employees by gender;
collective bargaining coverage; adequate wages; social protection; and training and
skills development.
EFRAG’s cost-benefit analysis on the first set of draft ESRS20 presents an assessment of the
impact of the first set of standards across different stakeholder groups (i.e. mainly EU
undertakings, investors, NGOs, trade unions and society at large). The cost and benefit
assessment distinguishes between direct costs and benefits, and indirect costs and benefits21.
Overall, the costs are much more visible, tangible and measurable in the short term, while the
benefits are mostly intangible and non-measurable, dependent on other legislative and non-
legislative developments, and will only become evident in the medium to long term. These
estimated costs and benefits are based on the proposed standards submitted by EFRAG and
not the final proposed delegated act presented by the Commission.

20
Available at https://www.efrag.org/lab6. This analysis was commissioned to the Centre for European
Policy Studies (CEPS) and its partner Milieu.
21
The ESRS is likely to contribute to the reporting of more relevant, comparable, reliable and usable,
digitally accessible, and mandatory sustainability information of a larger number of undertakings than
NFRD. This will allow investors to take environmental and social risks better into account in their
investment decisions and allows citizens, trade unions, NGOs, and other societal organisations to hold
undertakings accountable for their societal and environmental impacts. The proper implementation of the
ESRS is likely to ultimately contribute to a reduction in the systemic risks to the economy, increased
capital flows to undertakings addressing sustainability issues and the strengthening of the social contract
between undertakings and citizens. Moreover, it will contribute towards achieving the ambitious goals of
the European Green Deal.

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 Following EFRAG’s submission of its technical advice to the Commission and prior to the
adoption of this delegated act, the Commission has carried out the following consultations, as
required by the Accounting Directive22:
i) Joint consultation of the Member State Expert Group on Sustainable Finance and the
Accounting Regulatory Committee23;
ii) consultation of the European Securities and Markets Authority (ESMA), the European
Banking Authority (EBA), the European Insurance and Occupational Pensions
Authority (EIOPA), the European Environment Agency (EEA), the European Union
Agency for Fundamental Rights (FRA), the European Central Bank (ECB), the
Committee of European Auditing Oversight Bodies (CEAOB) and the Platform on
Sustainable Finance.

In addition, the Commission services held meetings with a number of stakeholders to hear
their views on the draft standards, and some stakeholders spontaneously submitted comments
in writing.
These consultations confirmed that the draft standards submitted by EFRAG broadly meet the
mandate of the CSRD and would achieve the intended policy goals in the context of the
European Green Deal. At the same time, some respondents drew attention to the challenging
nature of many of the disclosure requirements for many undertakings, and in particular for
undertakings that have not previously been subject to legal requirements to report
sustainability information. Some of the most challenging disclosure requirements in the draft
standards submitted by EFRAG are deemed to relate to biodiversity, to the undertaking’s own
workforce, and to disclosures regarding value-chain workers, affected communities, and
consumers and end-users.
Many respondents stressed the need for additional guidance to enable undertakings to apply
the standards in an efficient and consistent manner, in particular but not only with regard to
the materiality assessment process and the disclosure of value chain information. Some
respondents also made proposals to improve the coherence of certain provisions of the
standards with the CSRD or with other pieces of EU legislation.
Furthermore, in its strategy for long-term competitiveness, the Commission has stressed the
importance of a regulatory system that ensures that objectives are reached at minimum costs.
It has committed to rationalise reporting obligations, while maintaining the ambitious
objectives of its legislation. While certain reporting obligations are essential, they need to be
as efficient as possible, avoiding overlaps, removing unnecessary burdens and using as much
as possible digital and interoperable solutions. In the spirit of this commitment, the present
initiative has further streamlined reporting obligations, while not affecting the pursuit of the
objective of the Directive. More specifically, the Commission has made the following
modifications to the draft standards submitted by EFRAG, with the specific aim of ensuring
proportionality and facilitating the correct application of the standards by undertakings:
 Materiality: all standards and all disclosure requirements and data points within each
standard will be subject to materiality assessment by the undertaking, with the
exception of the disclosure requirements specified in the “General disclosures”

22
Article 49(3b) of the Accounting Directive.
23
In addition to the request for written comments submitted on 25 November 2022 to the ARC and on 28
November 2022 to the MSEGSF, a joint ARC-MSEGSF virtual meeting was organised on 15 December
2022.

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 standard. This measure is expected to lead to a significant burden reduction for
undertakings and helps to ensure that the standards are proportionate.
 Phasing-in certain requirements: in addition to the phase-ins proposed by EFRAG,
the Commission has provided for further phase-ins that will help all companies, and
in particular smaller companies that are subject to sustainability reporting
requirements for the first time, to apply the standards effectively. The additional
phase-ins introduced by the Commission are:
– Undertakings with less than 750 employees may omit: scope 3 GHG emissions
data and the disclosure requirements specified in the standard on “own
workforce” in the first year that they apply the standards; and the disclosure
requirements specified in the standards on biodiversity and on value-chain
workers, affected communities, and consumers and end-users in the first two
years that they apply the standards.
– All undertakings may omit the following information in the first year that they
apply the standards: anticipated financial effects related to non-climate
environmental issues (pollution, water, biodiversity, and resource use); and
certain datapoints related to their own workforce (social protection, persons
with disabilities, work-related ill-health, and work-life balance).
 Making certain disclosures voluntary: the draft standards submitted by EFRAG
already included many voluntary datapoints. The Commission has further converted
a number of the mandatory datapoints proposed by EFRAG into voluntary
datapoints. This includes, for example: biodiversity transition plans; certain
indicators about “non-employees” in the undertaking’s own workforce24; and an
explanation of why the undertaking may consider a particular sustainability topic not
to be material.
 Further flexibilities in certain disclosures: in addition to making certain datapoints
voluntary, the Commission has also introduced certain flexibilities for some of the
mandatory datapoints. For example, there are additional flexibilities in the disclosure
requirements on the financial effects arising from sustainability risks and on
engagement with stakeholders, and in the methodology to use for the materiality
assessment process. Furthermore the Commission has modified datapoints regarding
corruption and bribery and regarding the protection of whistle-blowers that might be
considered to have infringed on the right not to self-incriminate.
 Coherence with EU legal framework: Technical modifications to ensure better
alignment with other provisions in the Accounting Directive and with other relevant
pieces of legislation, for example regarding the Pay Transparency Directive and the
European Pollutant Release and Transfer Register.
 Interoperability with global standard-setting initiatives: the Commission and EFRAG
have continued to engage closely with International Sustainability Standards Board
and the Global Reporting Initiative to ensure a high degree of interoperability with
ESRS, and further modifications to the draft ESRS have been made in light of that
engagement.

24
“Non-employees” are self-employed persons or persons who provided by undertakings primarily engaged
in “employment activities” (NACE Code N78).

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  Editorial and presentational modifications: the Commission has made editorial and
presentational changes to improve the clarity, usability, and coherence of the
standards. This includes, for example, the introduction of a drafting convention to
clearly identify all terms for which ESRS has a precise definition.
The Commission anticipates that the proposed additional phase-in measures will enable a total
cost reduction during the phase-in period of EUR 1 172 million compared to the draft
standards proposed by EFRAG. In addition, the Commission estimates that the proposed
modifications with regard to materiality, combined with making certain disclosures voluntary,
will reduce costs by EUR 230 million annually compared to EFRAG’s proposal. These cost-
estimates are based on the most substantial modifications that have been made compared to
the EFRAG drafts. They are based on conservative assumptions, as the additional cost
reductions induced by other modifications (further flexibilities on certain disclosures,
improved coherence with EU legal framework, interoperability with global standard-setting
initiatives and editorial and presentational modifications) could not be quantified at this stage
in a meaningful way.
The Commission is putting in place an interpretation mechanism to provide formal
interpretation of the standards. The Commission has also asked EFRAG to publish additional
guidance and educational material, addressing the materiality assessment process and other
issues.
The Commission has also assessed the consistency of this delegated act with the climate-
neutrality objective set out in Article 2(1) of the European Climate Law (Regulation (EU)
2021/1119)25, and with the objective of ensuring progress on adaptation as referred to in
Article 5 of that Regulation.

3. LEGAL ELEMENTS OF THE DELEGATED ACT

This delegated act is based on Article 29b(1), first subparagraph, of the Accounting Directive.
It specifies the European Sustainability Reporting Standards (ESRS) undertakings shall use to
carry out their sustainability reporting in accordance with Articles 19a and 29a of the
Accounting Directive.
This delegated act is accompanied by the following Annexes:
– Annex I, which includes:
i. Cross-cutting standards:
ESRS 1 General requirements
ESRS 2 General disclosures
ii. Standards on Environmental, Social and Governance matters:
ESRS E1 Climate change
ESRS E2 Pollution
ESRS E3 Water and marine resources
ESRS E4 Biodiversity and ecosystems
ESRS E5 Resource use and circular economy
ESRS S1 Own workforce
ESRS S2 Workers in the value chain

25
Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing
the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU)
2018/1999 (OJ L 243, 9.7.2021, p. 1).

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 ESRS S3 Affected communities
ESRS S4 Consumers and end-users
ESRS G1 Business conduct
– Annex II, which includes the list of Acronyms and the Glossary with the definitions
to be used for the purposes of carrying out sustainability reporting in accordance with
ESRS.
This delegated act applies from 1 January 2024 to the undertakings that were already subject
to the non-financial reporting requirements introduced by the Non-Financial Reporting
Directive. Its application will be phased-in for other categories of undertakings based on the
phased approach set out in Article 5 CSRD.26 Listed SMEs will have the option of meeting
their reporting requirements under the CSRD by reporting according to separate,
proportionate standards that the Commission will adopt by end June 2024.

COMMISSION DELEGATED REGULATION (EU) …/...

of XXX

supplementing Directive 2013/34/EU of the European Parliament and of the Council as

regards sustainability reporting standards

(Text with EEA relevance)

THE EUROPEAN COMMISSION,

Having regard to Directive 2013/34/EU of the European Parliament and of the Council of 26
June 2013 on the annual financial statements, consolidated financial statements and related
reports of certain types of undertakings, amending Directive 2006/43/EC of the European

26
From financial years starting on or after 1 January 2024:
i) large undertakings that are Public Interest Entities (PIEs) exceeding on their balance sheet dates
the average number of 500 employees during the financial year;
ii) PIEs that are parent undertakings of a large group exceeding on its balance sheet dates, on a
consolidated basis, the average number of 500 employees during the financial year;
From financial years starting on or after 1 January 2025:
i) large undertakings other than large undertakings that are Public Interest Entities (PIEs) exceeding
on their balance sheet dates the average number of 500 employees during the financial year;
ii) parent undertakings of a large group other than PIEs that are parent undertakings of a large group
exceeding on its balance sheet dates, on a consolidated basis, the average number of 500
employees during the financial year;
From financial years starting on or after 1 January 2026 (with the option of voluntarily opting out for
financial years 2026 and 2027):
i) small and medium-sized undertakings with securities listed on the EU regulated markets,
excluding micro-undertakings;
ii) small and non-complex institutions, provided they are large undertakings or that they are small and
medium sized undertakings with securities listed on the EU regulated markets, excluding micro-
undertakings;
iii) to captive insurance undertakings and captive reinsurance undertakings, provided that they are
large undertakings or that they are small and medium sized undertakings with securities listed on
the EU regulated markets, excluding micro-undertakings.

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 Parliament and of the Council and repealing Council Directives 78/660/EEC and
83/349/EEC27, and in particular Article 29b(1), first subparagraph, thereof,
Whereas:
(1) Directive 2013/34/EU, as amended by Directive (EU) 2022/246428, requires large
undertakings, small and medium-sized undertakings with securities admitted to trading
on the EU regulated markets, as well as parent undertakings of large groups, to include
in a dedicated section of their management report or consolidated management report
the information necessary to understand the undertaking’s impacts on sustainability
matters, and the information necessary to understand how sustainability matters affect
the undertaking’s development, performance and position. Undertakings are to prepare
this information in accordance with sustainability reporting standards starting from the
financial year indicated in Article 5(2) of Directive (EU) 2022/2464 for each category
of undertakings.
(2) The Commission is required to adopt by 30 June 2023 a first set of standards
specifying the information that undertakings are to report in accordance with Article
19a(1) and (2), and Article 29a(1) and (2) of that Directive, including at least the
information that financial market participants need in order to comply with the
disclosure obligations of Regulation (EU) 2019/2088 of the European Parliament and
of the Council29.
(3) The Commission has taken into account the technical advice provided by the EFRAG.
EFRAG’s independent technical advice meets the criteria set out in Article 49(3b),
first, second and third subparagraphs, of Directive 2013/34/EU. To ensure
proportionality and to facilitate the correct application of the standards by
undertakings, the Commission has introduced modifications to EFRAG’s technical
advice as regards the materiality approach, the phasing-in of certain requirements, the
conversion of certain requirements into voluntary datapoints, the introduction of
flexibilities in a number of disclosure requirements, the introduction of technical
modifications to ensure coherence with the Union’s legal framework and a high degree
of interoperability with global standard-setting initiatives, as well as editorial
modifications.
(4) These sustainability reporting standards meet the requirements set out in Article 29b of
Directive 2013/34/EU.
(5) Common sustainability reporting standards should therefore be adopted.
(6) In accordance with Article 29b(1), fourth subparagraph, of Directive 2013/34/EU this
Regulation should not enter into force earlier than 4 months after its adoption by the
Commission.
(7) In accordance with Article 49(3b), fourth subparagraph, of Directive 2013/34/EU, the
Commission has consulted jointly the Member State Expert Group on Sustainable
Finance, referred to in Article 24 of Regulation (EU) 2020/852 of the European

27
OJ L 182, 29.6.2013, p. 19.
28
Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending
Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU,
as regards corporate sustainability reporting (OJ L 322, 16.12.2022, p. 15).
29
Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on
sustainability‐related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1).

EN 9 EN
 Parliament and of the Council30, and the Accounting Regulatory Committee, referred
to in Article 6 of Regulation (EC) No 1606/2002 of the European Parliament and of
the Council31. In accordance with Article 49(3b), fifth subparagraph, of Directive
2013/34/EU, the Commission has requested the opinion of the European Securities
and Markets Authority (ESMA), the European Banking Authority (EBA) and the
European Insurance and Occupational Pensions Authority (EIOPA), in particular with
regard to the consistency of this Regulation with Regulation (EU) 2019/2088 and the
delegated acts adopted pursuant to that Regulation. In accordance with Article 49(3b),
sixth subparagraph, of Directive 2013/34/EU, the Commission has also consulted the
European Environment Agency, the European Union Agency for Fundamental Rights,
the European Central Bank, the Committee of European Auditing Oversight Bodies
and the Platform on Sustainable Finance established pursuant to Article 20 of
Regulation (EU) 2020/852,
HAS ADOPTED THIS REGULATION:

Article 1
Subject matter
The sustainability reporting standards that undertakings are to use for carrying out their
sustainability reporting in accordance with Articles 19a and 29a of Directive 2013/34/EU
following the timetable set out in Article 5(2) of Directive (EU) 2022/2464 are set out in
Annexes I and II of this Regulation.

Article 2
Entry into force and application
This Regulation shall enter into force on DD/MM/YYYY [PO: please insert the date that
corresponds to the date of adoption plus four months].
It shall apply from 1 January 2024 for financial years beginning on or after 1 January 2024.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, [DD/MM/YYYY].

For the Commission

The President
Ursula VON DER LEYEN

30
Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the
establishment of a framework to facilitate sustainable investment, and amending Regulation (EU)
2019/2088 (OJ L 198, 22.6.2020, p. 13).
31
Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the
application of international accounting standards (OJ L 243, 11.9.2002, p. 1).

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