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Audio: European Union regulations beyond CSRD
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- ESG Insights
Unlocking #Sustainability with #EU #GreenDeal 🌍💼📈
3 Key Takeaways:
- Sustainable finance is crucial for long-term investments in sustainable projects.
- Disclosure requirements now extend to non-EU companies operating within the EU.
- New adjustments aim to simplify reporting, increasing thresholds by 25%.
Further Insights:
EU Taxonomy
- Introduces disclosure of key performance indicators for sustainability, affecting entities under CSRD and extending phased application from 2024.
SFDR
- Mandates disclosure of sustainability policies and product characteristics for financial market participants and advisers in the EU, effectuating transparent investment decisions.
CBAM
- Implements disclosures transitioning to mandatory purchase of emission certificates for specified imports, harmonizing the cost of carbon for imported and local products.
FSR
- Requires disclosure on non-EU financial subsidies, aiming to maintain fair competition within the EU Single Market, applicable to mergers and public procurement thresholds.
CSDDD
- Proposes regulations to protect human rights and the environment in global value chains, necessitating corporate due diligence, pending application possibly in 2026.
Closing Thoughts: With the EU ramping up its sustainability and reporting requirements, how prepared are businesses to meet these complex obligations? The shift towards transparency and sustainability repr no esents not just regulatory compliance but a strategic business shift towards a greener future. How can businesses leverage these regulations for competitive advantage and sustainable growth?