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EC announces new sustainable finance strategy

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06 Jul 2021

The European Commission (EC) has adopted a number of measures regarding its sustainable finance ambitions.

The strategy consists of a whole package of measures reflected in statements, communications and a variety of documents. The central Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions also includes a comment on IFRS financial reporting against the background of sustainability aspects:

The Commission strongly supports international work on integrating sustainability considerations into financial reporting and accounting and will seek the highest level of ambition. The Commission will work with the European Financial Reporting Advisory Group (EFRAG), the European Securities and Markets Authority (ESMA) and the International Accounting Standards Board (IASB) to assess whether international financial reporting standards (IFRS) appropriately integrate sustainability risks. [...] In particular, it should be assessed how to recognise and report relevant climate and environmental risks in financial statements adequately and on a timely basis.

Further, the communication also comments on the general debate around sustainability reporting standards and notes that international standards may overlap, be inconsistent and vary in ambition. The Commission, therefore, welcomes efforts for a baseline global reporting standard for sustainability and advocates for comprehensive sustainability reporting standards that address all sustainability issues and capture the double materiality perspective, in line with the recently proposed EU Corporate Sustainability Reporting Directive (CSRD).

Please click to access the package of documents published today on this EC website. Direct access to the central communication is available here.

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