European Commission publishes new guidelines on corporate climate-related reporting
On Tuesday 18 June 2019, the Commission published new guidelines on non-financial information climate-related reporting as part of its Sustainable Finance Action Plan. The new guidelines will provide companies with practical recommendations on how to better report the impact their activities have on the climate as well as how climate change impacts their activities. The guidelines are inspired by the recent work of done by the Technical Expert Group on Sustainable Finance (TEG) and integrate the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The new guidelines will ensure that issuers can be key players in leading the transition to a climate-neutral economy and will provide guidance to around 6,000 EU-listed companies, banks and insurance companies which are obligated by the Non-Financial Reporting Directive (NFRD) to disclose non-financial information.
EuropeanIssuers welcomes the guidelines as they serve to facilitate the reporting of relevant non-financial information for issuers. The non-binding nature of the guidelines allows for a flexible approach for climate-related disclosures in the five reporting areas listed in the NFRD.
– Business model
– Policies and due diligence
– Outcome of policies
– Principal risks and risk management
– Key Performance Indicators (KPIs)
If you would like to read the updated guidelines on climate-related reporting in full please follow the link here. For a brief summary of the guidelines you can follow the link here.