Differences between regulations and standards

[samiaseo222]

The regulation was introduced in two phases: in 2017, a directive NFRD (English: Non-Financial Disclosure Directive ) was published, which imposed an obligation on public interest entities (PIEs) to submit annual reports and key performance indicators. In doing so, it did not impose a specific reporting model, but instead encouraged the use of already existing frameworks, such as for example Global Reporting Initiative (GRI) or Integrated Reporting Framework (IRF). By law, 150 of the largest companies in Poland were covered, and 11,700 in the European Union as a whole.

There is no doubt that the NFRD has phone code philippines contributed to improving the availability of ESG information among EU companies . However, many stakeholders (including investors) expressed concerns that the information disclosed by companies was insufficient and difficult to compare due to the lack of a common, standardised ESG reporting standard. In addition, there was a need to align the NFRD requirements with provisions introduced at later stages within the framework of the EU Sustainable Finance Strategy, i.e. the EU Taxonomy and the SFDR.



Instead, a CSRD ( Corporate Sustainability Reporting Directive ) was introduced. What makes it stand out on the EU regulatory map? The CSRD significantly expands the scope of non-financial reporting, increasing the number of entities covered by ESG reporting and broadening the scope of sustainability reporting. It applies to around 50,000 companies listed in the EU or with significant activities in the Union, regardless of where they are based. Under the Directive, these companies are required to report on their non-financial results more comprehensively than was required under previous legislation.