On Thursday 24 February, the European Ministers for Competitiveness reached a political agreement in principle (‘general approach’) on the directive governing the publication by companies of sustainability information (CSRD).
Olivia Grégoire, French Secretary of State for the Social, Solidarity and Responsible Economy, noted that there was “a pressing demand from stakeholders for reliable, harmonised and audited data regarding the impact of companies on their environment, as well as on society”.
In addition to developing an operational quality accounting standard, the aim of the directive is to enable companies to better develop and manage their sustainability strategies and for investors to be able to finance the sustainable transition.
This agreement comes after modifications were made to the initial proposal (see EUROPE 12894/11), notably in terms of the transposition deadline and different application deadlines based on the size of the companies, as well as the language used in the consolidated reports for companies with foreign subsidiaries.
Strong experience in standardisation
The compromise submitted by the French Presidency of the EU was unanimously judged by ministers to be a balanced one.
Only the Czech Republic expressed their reservations, adding an annex. “Even though we would prefer to keep the sustainability reporting obligations on a voluntary basis, we perceive that there is a strong general support for the proposal. Having said that, we believe that the text is ripe for the general approach and you have our support”, said the country representative, in giving assurances.
In front of the press, Ms Grégoire insisted on the “sovereignty issue, which surrounds the directive. “We are equipping ourselves with the means to develop our own European standard, which can then be used to influence and work in conjunction with other international standards. The EU can claim they have taken the lead in social and environmental governance”, she explained.
The EU, she said, is a “perfectly legitimate” choice to play a leading role since this directive will give “a solid experience in standardisation when it comes to negotiating international standards”. This experience will be made possible thanks to the “ambitious timetable” envisaged by the French Presidency, said the Secretary of State.
Thierry Breton, European Commissioner for Internal Market, who also presented the European Commission's proposal on corporate sustainability due diligence (see EUROPE 12897/7), noted the importance of this text and the fact it is a step in the action plan on sustainable finance.
The European Parliament's competent committee could adopt its negotiating position in mid-March with a view to launching interinstitutional negotiations. (Original version in French by Anne Damiani)