<p>This Directive amends the previous directive governing the reporting of non-financial information in financial disclosures. It extends the scope of reporting obligations to a much wider set of companies headquartered or operating in the European Union. They new obligations will apply from the 2024 financial year.The Directive requires member states to introduce measures to ensure that sustainability disclosures include information on plans and strategies to ensure a corporate entity's business model and strategy are compatible with the transition to a sustainable economy, the global temperate target of 1.5 Degrees, and the goal of achieving climate neutrality by 2050, as well as the exposure of the entity to coal, oil and gas.The Commission is mandated to adopt delegated acts supplementing the Directive and providing sustainability reporting standards for both large entities and small and medium sized businesses. These shall specify that reporting should include scope 1, 2 and "where relevant" scope 3 greenhouse gas emissions. Businesses are also required to report on social and human rights factors. Reporting standards should be aligned with the work of the Task Force for Climate Related Financial Disclosures.</p>

Directive (EU) 2022/2464 amending Regulation (EU) No 537/2014 and others, as regards corporate sustainability reporting (Corporate Sustainability Reporting Directive or CSRD)

<p>          The summary of this document was written by researchers at the <a href="http://lse.ac.uk/grantham" target="_blank"> Grantham Research Institute </a> .           If you want to use this summary, please check <a href="https://www.lse.ac.uk/granthaminstitute/cclw-terms-and-conditions" target="_blank"> terms of use </a> for citation and licensing of third party data.</p>

Directive (EU) 2025/794 amending Directive (EU) 2022/2464

Amended/Updated

European Union

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives