ESG Legislation

In today's dynamic business environment, where sustainability and responsible business are becoming increasingly important, the position of ESG Compliance Officer becomes irreplaceable. It is an expert role that combines knowledge of law, economics and ecology and ensures compliance (more…)

The international sustainability reporting landscape is undergoing significant changes in 2023, 2024 and 2025, as standardization bodies and regulators such as the International Sustainability Standards Board (ISSB) and (more…)

The first half of 2025 brought significant changes to global sustainability reporting. International bodies, regional institutions and national legislations are working intensively to simplify, harmonise and implement standards for (more…)

EU Regulation on Deforestation-Free Products (Regulation (EU) 2023/1115), hereinafter referred to as the "EUDR", introduces new obligations for operators and traders concerning the placing on the Union market, the making available on the Union market and (more…)

Consumers can now get more information about how easy it is to repair their smartphones and tablets. The Commission has introduced a new repairability rating system that will appear on the new energy label that accompanies these electronic products, helping consumers make more sustainable choices when purchasing these products.

Repairability ratings provide a clear and easy-to-understand rating of a product's repairability from A (highest) to E (lowest) and are based on the rigorous scientific method developed by the Joint Research Centre (JRC) .  (More on centre.ec.europa.eu

The European Union is implementing far-reaching changes in the field of packaging and packaging waste with the aim of achieving a low-carbon circular economy and climate neutrality by 2050 at the latest. These new regulationswhich are acquiring (more…)

The European Union Deforestation Regulation (EUDR) is fast approaching its December 2025 deadline, originally set to come into force in December 2024. This regulation poses a significant challenge (more…)

The European Union is introducing a new set of rules covering all three pillars of ESG (environmental, social and governance). The main regulations in force include: CSRD (Directive on Corporate Sustainability Reporting, (more…)

The European Union has adopted a new regulation 2024/3005 of 27 November 2024 on environmental, social and governance (ESG) rating providers. The aim of this Regulation is to (more…)

🇪🇺 The European Green Deal Risk Radar analyses the current state of play of the most important legislative documents of the European Green Deal and identifies potential risks these laws face in terms of their delay, de-funding, dilution or even withdrawal. It also provides a key timeline highlighting when potential risks are most likely to emerge, whether due to review clauses, delegated acts, impact assessments or the deadline for transposition into EU Member States' law. (More on green-deal-risk-radar)

The EU Platform for Sustainable Finance has developed usability report and data to simplify the EU taxonomy to support sustainable finance. The report, which was prepared in February 2025, (more…)

Taxonomy in the context of ESG (Environmental, Social, and Governance) is a systematic classification framework that serves to identify, categorize, and evaluate economic activities according to their impact on the environment, society, and corporate governance. The taxonomy aims to provide uniform criteria for what is considered sustainable or green in order to avoid so-called "greenwashing" (misrepresenting products or activities as green).

In the European Union, it was created European Taxonomy for Sustainable Finance, which is a key tool in the field of sustainable investment. This taxonomy defines:

Six environmental goals:

1. Climate change mitigation

2. Adaptation to climate change

3. Sustainable use and protection of water and marine resources

4. Transition to a circular economy, waste prevention and recycling

5. Pollution prevention and control

6. Protection and restoration of biodiversity and ecosystems

– Criteria for social and governance aspects, which include respect for human rights, working conditions, the fight against corruption and transparency of management.

In order for an economic activity to be classified as sustainable according to the taxonomy, it must meet three main conditions:

1. Significant contribution to at least one of the listed environmental objectives.

2. Do not cause significant harm to any of the other objectives (the "Do No Significant Harm" principle).

3. Comply with minimum social and management safeguards, such as the OECD Guidelines for Multinational Enterprises and the UN Principles on Business and Human Rights.

Purpose of taxonomy in ESG:

– For investors: Provides clear and comparable information on the extent to which their investments are sustainable, supporting informed decision-making and directing capital into environmentally and socially responsible projects.

– For companies: It allows them to evaluate and improve their activities with respect to sustainability, which can increase their attractiveness to investors and improve their reputation.

– For regulators: Serves as a tool for creating policies and regulations that support the transition to a sustainable economy.

Importance of taxonomy:

The ESG taxonomy is a key step towards standardizing sustainability concepts and methodologies. It helps to avoid inconsistencies and confusion caused by different interpretations of what “sustainable” or “green” means. This promotes transparency in financial markets and contributes to achieving the goals of the Paris Agreement and the 2030 Agenda for Sustainable Development.

This definition should provide a clear picture of what the ESG taxonomy is and what its significance is in the current economic and environmental context. If you have any further questions or need more detailed information, I am happy to help. Spring

The European Commission will radically simplify EU environmental rules in a bid to boost struggling European industry and compete with faster-growing economies in Asia and the Americas. Von der Leyen said earlier this month that she would launch a legislative process to simplify three major EU environmental laws from the last mandate: the Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive and the EU Taxonomy. (MARIANNE GROS, More at politico.eu)

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 

This document provides practical guidance on the voluntary adoption of IFRS S1 and IFRS S2 standards for companies. These standards, issued by the International Sustainability Standards Board (ISSB), provide a global framework for companies to disclose information about sustainability-related risks and opportunities that are relevant to investors. The document explains various aspects of the application of the standards, including transitional reliefs and principles of proportionality, which allow companies to gradually incorporate these standards into their practice. It also looks at how companies can communicate their progress in implementing these standards and how they can build on existing sustainability disclosure frameworks. Spring

International Financial Reporting Standards (IFRS) September 25 published  manual.

A summary of ESG legislation at the European Union level includes several key pieces of legislation and regulations that focus on sustainable investments, sustainability disclosure, green bonds and the incorporation of ESG factors into various economic and financial practices:

These legislative initiatives emphasize the EU's efforts to support environmentally sustainable economic activities, to increase the transparency and responsibility of companies and the financial sector in their approach to sustainability.

(More on co2news.sk/esg_legislativa)

A summary of ESG legislation at the European Union level includes several key pieces of legislation and regulations that focus on sustainable investments, sustainability disclosure, green bonds and the incorporation of ESG factors into various economic and financial practices:

These legislative initiatives emphasize the EU's efforts to support environmentally sustainable economic activities, to increase the transparency and responsibility of companies and the financial sector in their approach to sustainability.

(More on co2news.sk/esg_legislativa)

Commission Delegated Regulation (EU) 2021/2139 of June 4, 2021, supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing technical review criteria for determining the conditions under which an economic activity is characterized as significantly contributing to climate change mitigation or climate change adaptation, and for determining whether the given economic activity does not significantly disrupt the fulfillment of any of the other environmental goals (Text with significance for the EEA).

This regulation enters into force on the twentieth day after its publication in the Official Journal of the European Union. It applies from 1 January 2022.

This regulation provides technical review criteria to determine whether economic activity significantly contributes to climate change mitigation or climate change adaptation, and whether does not significantly interfere with the fulfillment of other environmental goals.

• The Regulation emphasizes that the technical criteria should take into account the nature and scope of the economic activity, the sector, and whether the activity is transitory or supportive.
• In the case of some activities with technically complex elements, verification of compliance with technical review criteria may require an independent third party.
• The regulation recognizes that some activities, such as forestry, wetland restoration and program production, can contribute to climate change adaptation by providing adaptation solutions.
• It is important that the technical review criteria did not affect existing environmental, health, safety and social requirements set out in EU and national law.
• Regulation enters into force 20 days after publication in the Official Journal of the European Union and applies from 1 January 2022.

The regulation contains examples of technical review criteria for different activities, including:

Forestry:

• Introduction of the afforestation plan and subsequent forest management plan.
• A climate benefit analysis that demonstrates reductions in greenhouse gas emissions.
• Minimizing the use of fertilizers and banning the use of manure.
• Prohibition of soil degradation with high carbon stocks.
• Monitoring and verification of compliance with criteria by an independent certification body.

Protection and restoration of the environment:

• Restoration of wetlands
• The use of a minimum amount of fertilizers and the prohibition of the use of manure.
• Avoiding the use of harmful chemicals.

Industry:

• Aluminum production
• Production of iron and steel
• Production of hydrogen
• Carbon black production

Transportation:

• Promotion of the use of heavy commercial vehicles with zero or low emissions.
• Support for low-emission inland and maritime passenger water transport.

Energy:

• Support of pumped water power plants meeting the criteria of sustainable use of water resources.

Construction industry:

• Support for the installation, maintenance or repair of energy efficient equipment in buildings.

The regulation further states general criteria of the "do not significantly disturb" principle in relation to:

• Sustainable use and protection of water and marine resources.
• Transition to circular economy.
• Prevention and control of pollution.

Regulation too defines supporting activities, which in themselves may not contribute significantly to mitigating climate change, but enable other activities to reduce greenhouse gas emissions. These activities must meet specific technical review criteria.

The regulation is a comprehensive document with a lot of detailed technical information, therefore it is advisable to consult the entire text of the regulation and its annexes for more detailed information.