Corporate Sustainability Reporting Directive (CSRD) proposal - December 2021
The SFC has published its position on the Corporate Sustainability Reporting Directive (CSRD) proposal. Here some takeaways:
- We propose a more proportionate approach to sustainability reporting and limit unintended negative extraterritorial impacts of the CSRD proposal.
- We have concerns that the “extraterritorial scope of application” included in the current CSRD proposal could have negative consequences for both the EU and its policy objectives (climate neutrality by 2050 and the Capital Markets Union) and non-EU companies wishing to support the EU economy.
- Our proposal would ensure that global financial institutions will continue to focus on EU markets to execute their funding plans and would not move their issuances of debt securities from the EU to other jurisdictions in order to avoid CSRD reporting requirements at group level.