A document entitled "Communication from the Commission on the interpretation of some provisions of Directive 2013/34/EU (Accounting Directive), Directive 2006/43/EC (Audit Directive), Regulation (EU) No. 537/2014 (Audit Regulation), Directive 2004/109/EC (Transparency Directive), Delegated Regulation (EU) 2023/2772 (the first set of European Sustainability Reporting Standards, "the first ESRS Delegated Act") and Regulation ( EU) 2019/2088 (Sustainable Finance Disclosure Regulation, "SFDR") as regards sustainability reporting' provides clarification on some of the legal provisions relating to sustainability reporting.

The main objective of the document is to facilitate the implementation of the new sustainability reporting requirements introduced by the Corporate Sustainability Reporting Directive (CSRD) into existing legislation. The document contains:

• Glossary of relevant terms: Defines key terms related to sustainability reporting, such as "accounting guidance", "ESRS", "sustainability report" and "sustainability statement".
• Overview of CSRD requirements: Briefly describes the new sustainability reporting requirements introduced by the CSRD Directive.
• Detailed guidance on specific aspects of sustainability reporting: The document is structured into Frequently Asked Questions (FAQ) sections, which cover various topics:
  • Scope and dates of application: Who is required to report on sustainability and since when.
  • Exemption rules: When is a business exempt from sustainability reporting?
  • ESRS: Which ESRS standards should businesses use and how should they report on their value chain.
  • Disclosure of information pursuant to Article 8 of the Taxonomy Regulation: How to include the disclosure of information under Article 8 of the Taxonomy Regulation in the Sustainability Statement.
  • Language and format requirements: In what language and format should the sustainability report be prepared and published.
  • Supervision: Which authorities are responsible for overseeing compliance with sustainability reporting requirements.
• Verification requirements for sustainability reports: Who can verify sustainability reports and what are the verification conditions.
• Requirements for businesses from third countries: How sustainability reporting requirements apply to businesses from third countries.
• SFDR: How intangible asset information and SFDR indicators relate to sustainability reporting.

It is important to note that this document serves only as an aid in the implementation of the relevant legislation. It does not introduce any new rights or obligations and is not a binding interpretation of EU law. Spring