Amsterdam, 22nd June 2023 – As part of the plan to green the EU economy, the European Commission has opened the consultation on their draft Delegated Act on the European Sustainability Reporting Standards (ESRS) setting out standards for the disclosure of environmental, social and governance (ESG) information, as required by the Corporate Sustainability Reporting Directive (CSRD). The text of the draft Delegated Act is now available for public consultation until the 7th of July 2023.
B Lab’s vision of an inclusive, equitable, and regenerative economic system where businesses hold themselves accountable aligns with the objectives of the European Green Deal. The ESRS, in particular, is a key piece of the puzzle to maintain the ambition of the CSRD which has introduced rigorous rules regarding the social and environmental disclosures of companies.
These standards have the potential to empower investors, regulators, and citizens to distinguish truly sustainable businesses from those that are not, facilitating the market's capability to incentivise the former and deter the latter.
However, following significant lobbying pressure against the European Financial Reporting Advisory Group (EFRAG)’s advice, the European Commission has surrendered all mandatory disclosures. B Lab Europe’s position is that certain adverse impacts – most notably on human rights and climate change – should always be included in the reports.
Based on B Lab Europe’s decade of assessing sustainability performance through a standardized questionnaire, the organization sees addressing specific always-material topics as a foundation for effectively implementing corporate sustainability strategies.
After voicing their concern in a letter to the Commission regarding the possibility of its proposal going against the multi-stakeholder agreement reached in EFRAG, B Lab Europe and the Impact Economy Foundation joined forces with Impact Institute and True Price to launch CSRD.org, an initiative to advocate for robust and meaningful sustainability reporting rules within the framework of the CSRD.
The coalition provides resources on how to respond to the consultation and ensures that pioneering companies make their voice heard. Find out more here: https://www.csrd.org/take-action
B Lab Contact: media@bcorporation.eu
