SOURCE: Workiva
DESCRIPTION:
By Andromeda Wood, Senior Director of Global XBRL Strategy, Workiva
The new proposals for the Corporate Sustainability Reporting Directive (CSRD) builds on the existing Non-Financial Reporting Directive (NFRD) and will apply to all large companies and all listed companies in the EU. This means an increase from 11,000 who were subject to existing requirements, to nearly 50,000 that will need to follow detailed EU sustainability reporting standards.
As these changes come into play, sustainability is moving to the top of investors’ priority lists and regulation is directing investors to care, or at least make sure that the sustainability of a fund is disclosed. In addition, they must ensure that the information and funds are assessed against a common set of criteria (for example, EU sustainable finance, in particular the EU Taxonomy and associated SFDR).
As a result, how a company performs against environmental, social and corporate governance (ESG) factors now has a direct effect on whether funding can be secured. Companies who fail to get this right may face challenges accessing capital.
Read the full article here.
KEYWORDS: Workiva, CSRD, NYSE:WK
