The recommfinishation serves as an interim solution to address the growing demand for sustainability information from financial institutions, large companies, and other stakeholders, pfinishing the adoption of a formal voluntary principle through a dedicated delegated act.
The Corporate Sustainability Reporting Directive (CSRD), by imposing reporting obligations on large listed companies, also has a knock-on effect on compacter companies within their value chain. The pressure on companies to collect the necessary data for reporting is further increased by the Corporate Sustainability Due Diligence Directive (CSDDD).
As a result, even SMEs not directly subject to these obligations may find themselves required to provide detailed information on sustainability-related issues.
This led to the recent decision by the European Commission to tquestion EFRAG (European Financial Reporting Advisory Group) with developing a voluntary and simplified reporting principle specifically for non-listed SMEs.
Leave a Reply