Regulation of sustainability information

Sustainability information by listed companies is based on two EU regulatory frameworks, the Corporate Sustainability Reporting Directive (EU) 2022/2464 and the European Sustainability Reporting Standards issued thereunder as Delegated Acts, as well as the Taxonomy Regulation (EU) 2020/852 and the Delegated Acts on criteria for environmentally sustainable economic activities and reporting, issued under its Article 8.

As part of the national implementation of the Sustainability Reporting Directive, the Accounting Act, Auditing Act and certain related Acts were amended (Government proposal HE 20/2023 vp) (in Finnish). Regulation of sustainability reporting laid down as delegated acts is directly binding on the member states.

The European Financial Reporting Advisory Group (EFRAG) functions as a technical advisor for the European Commission in the preparation of Sustainability Reporting Standards and their amendments. The Standards are prepared in compliance with EFRAG’s governance procedure, transparently and in consultation with various parties. In addition to public hearings, the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) issue opinions on technical advice provided by EFRAG. The Commission reviews regulation concerning the Sustainability Reporting Standards at least every three years after the first date of application of the Delegated Act.

The Platform on Sustainable Finance functions as a technical advisor for the European Commission in the preparation of Delegated Acts provided under Article 8 of the Taxonomy Regulation and amendments to these Acts. Similarly to EFRAG, the governance of the forum is transparent and consultative of various stakeholders. The forum has set up a stakeholder request mechanism to serve its stakeholders.

See also

ESRSs

Taxonomy Article 8 regulation