Sittings · Document

REPORT (COM(2023)0596 – C90386/2023 – 2023/0368(COD)) 2024-01-29

On the proposal for a decision of the European Parliament and of the Council on amending Directive 2013/34/EU as regards the time limits for the adoption of sustainability reporting standards for certain sectors and for certain third-country undertakings

Committee on Legal Affairs · Rapporteur: Axel Voss

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Amendments to a draft act

Amendments by Parliament set out in two columns

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Amendments by Parliament in the form of a consolidated text

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DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a decision of the European Parliament and of the Council amending Directive 2013/34/EU as regards the time limits for the adoption of sustainability reporting standards for certain sectors and for certain third-country undertakings

(COM(2023)0596 – C9-0386/2023 – 2023/0368(COD))

(Ordinary legislative procedure: first reading)

– having regard to the Commission proposal to Parliament and the Council (COM(2023)0596)),

– having regard to Article 294(2) and Article 50(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0386/2023),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the opinion of the European Economic and Social Committee of 13 December 2023,

– having regard to Rule 59 of its Rules of Procedure,

– having regard to the opinion of the Committee on Economic and Monetary Affairs,

– having regard to the report of the Committee on Legal Affairs (A9-0013/2024),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment 1

Proposal for a decision

Title

Text proposed by the Commission

Amendment

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

amending Directive 2013/34/EU as regards the time limits for the adoption of sustainability reporting standards for certain sectors and for certain third-country undertakings

Amendment 2

Proposal for a decision

Recital 3

Text proposed by the Commission

Amendment

(3) To reduce the reporting burden on undertakings, as set out in the Commission Communication on ‘Long-term competitiveness of the EU: looking beyond 2030’10, undertakings should be allowed to focus first on the implementation of sustainability reporting requirements laid down in Delegated Regulation (EU) XX/XXX. For that reason, the time limit for the adoption of the delegated acts containing the complementary sustainability reporting requirements referred to in Article 29b(1), third subparagraph, of Directive 2013/34/EU should be postponed by 2 years. However, this does not prevent the Commission from publishing the sector specific sustainability reporting standards before that date and the Commission should endeavour to adopt eight of the sector-specific sustainability reporting standards as soon as each is ready.

__________________

10 COM(2023)168.

Amendment 3

Proposal for a decision

Recital 3 a (new)

Text proposed by the Commission

Amendment

(3a) Undertakings in the same sector are often exposed to similar sustainability-related risks, and they often have similar impacts on society and the environment. Comparisons between undertakings in the same sector are especially valuable to investors and other users of sustainability information. Sustainability reporting standards should therefore specify both information that undertakings in all sectors should disclose and information that undertakings should disclose depending on their sector of activity. Sector-specific sustainability reporting standards are especially important in the case of sectors associated with high sustainability risks for or impacts on the environment, human rights and governance, including sectors listed in Sections A, B (including oil, gas, mining and coal) to H, K and L of Annex I to Regulation (EC) No 1893/2006 of the European Parliament and of the Council, and the relevant activities within those sectors. When adopting sector-specific sustainability reporting standards, the Commission should ensure the information specified by those sustainability reporting standards is proportionate to the scale of the risks and impacts related to sustainability matters specific to each sector, taking account of the fact that the risks and impacts of some sectors are higher than for others. The Commission should also take account of the fact that not all activities within such sectors are necessarily associated with high sustainability risks or impacts. For undertakings that operate in sectors particularly reliant on natural resources, sector-specific sustainability reporting standards would require the disclosure of nature-related impacts on and risks for biodiversity and ecosystems.

Amendment 4

Proposal for a directive

Recital 5 a (new)

Text proposed by the Commission

Amendment

(5a) In order to foster democratic control, scrutiny and transparency, the Commission should, at least once a year, consult the European Parliament, and jointly the Member State Expert Group on Sustainable Finance and Accounting Regulatory Committee on EFRAG’s work programme as regards the development of sustainability reporting standards. EFRAG’s work programme as regards the development of sustainability reporting standards should include information on its planning, prioritisation and timelines for future draft standards and other deliverables.

Amendment 5

Proposal for a directive

Article -1

Text proposed by the Commission

Amendment

HAVE ADOPTED THIS DECISION

HAVE ADOPTED THIS DIRECTIVE

Amendment 6

Proposal for a directive

Article 1 a (new)

Directive 2013/34/EU

Article 29b – paragraph 1 – subparagraph 3 a (new)

Text proposed by the Commission

Amendment

In Article 29b(1), a new subparagraph is inserted before the fourth subparagraph:

'The Commission shall endeavour to adopt eight of the sustainability reporting standards referred to in point (ii) as soon as each is ready.'

Amendment 7

Proposal for a directive

Article 2

Text proposed by the Commission

Amendment

This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

EXPLANATORY STATEMENT

Reporting requirements play a key role in ensuring correct enforcement and proper monitoring of legislation. However, they also impose extra burden on companies, mainly SMEs. The Commission acknowledges that and therefore it has committed to rationalise and simplify reporting requirements with the ultimate objective of reduction of such burdens by 25%. This exercise should nevertheless not undermine the related policy objectives.

The recently adopted corporate sustainability reporting directive (CSRD) requires certain companies to report the information necessary to understand company's impacts on sustainability matters, and the information necessary to understand how sustainability matters affect the company's development, performance and position. Such information is reported in accordance with the standards to be adopted by the Commission by means of delegated acts.

The first set of general standards applicable to all undertakings under the CSRD scope was adopted by the Commission on 31 July 2023.

The second set of standards which are sector specific standards and standards under Article 29b(1) and standards for certain non-EU companies with business in the Union under Article 40b are set to be adopted by 30 June 2024.

The Commission proposes to give the companies sufficient time to prepare for any new reporting requirements and postpone the adoption of the second set of standards by two years, to 30 June 2026.

The rapporteur fully shares this assessment and objectives of this proposal as companies need more time to digest the first set of standards and to focus on their proper implementation. At the same time this extra time would give EFRAG and the Commission sufficient time to properly reflect on the development of effective and proportionate second set of the reporting standards, including via consultations with relevant stakeholders.

It needs to be noted that EU companies have recently been facing many challenges and heavy bureaucratic burden in times of the COVID pandemic as well as the war in Ukraine and its impact on energy prices etc. Postponing the adoption date of 2 years will be very relevant for companies under CSRD scope to recover while it will not negatively affect the achievement of the objectives in the area of sustainability reporting.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he has received input from the following entities or persons in the preparation of the report, until the adoption thereof in committee:

Entity and/or person

Frank Bold

Clean Clothes Campaign

Insurance Europe

European Financial Reporting Advisory Group (EFRAG)

Global Reporting Initiative (GRI)

International Sustainability Standards Board (IFRS)

GDV – Gesamtverband der Deutschen Versicherungswirtschaft e. V.

The list above is drawn up under the exclusive responsibility of the rapporteur.

12.1.2024

OPINION OF THE COMMITTEE ON ECONOMIC AND MONETARY AFFAIRS

for the Committee on Legal Affairs

(COM(2023)0596 – C90386/2023 – 2023/0368(COD))

Rapporteur for opinion: Jessica Polfjärd

SHORT JUSTIFICATION

The Corporate Sustainability Reporting Directive (CSRD) requires large companies, listed small and medium-sized companies, and parent companies of large groups to report certain sustainability information.

This reporting must follow standards that are to be adopted by the Commission through delegated acts. A first general set of such standards was adopted by the Commission in July 2023. A second sector specific set of standards is scheduled to be adopted by June 2024.

As part of its competitiveness agenda, the Commission has committed to simplify reporting requirements for companies. The Commission has therefore proposed to postpone the adoption of the second set of standards under the CSRD by two years. This would mean these standards are adopted in June 2026 instead of June 2024, as currently foreseen.

The rapporteur is of the opinion that this postponement will give companies necessary breathing space while ensuring the proper and full implementation the new sustainability requirements under the CSRD. No amendments to the Commission’s decision are therefore proposed.

******

The Committee on Economic and Monetary Affairs calls on the Committee on Legal Affairs, as the committee responsible, to propose that Parliament adopt its position at first reading, taking over the Commission proposal.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Amending Directive 2013/34/EU as regards the time limits for the adoption of sustainability reporting standards for certain sectors and for certain third-country undertakings

References

COM(2023)0596 – C9-0386/2023 – 2023/0368(COD)

Committee responsible

Date announced in plenary

JURI

20.11.2023

Opinion by

Date announced in plenary

ECON

20.11.2023

Rapporteur for the opinion

Date appointed

Jessica Polfjärd

25.10.2023

Date adopted

11.1.2024

Result of final vote

–:

Members present for the final vote

Anna-Michelle Asimakopoulou, Marek Belka, Isabel Benjumea Benjumea, Stefan Berger, Gilles Boyer, Engin Eroglu, Markus Ferber, Jonás Fernández, Claude Gruffat, Enikő Győri, Eero Heinäluoma, Michiel Hoogeveen, Danuta Maria Hübner, Stasys Jakeliūnas, France Jamet, Othmar Karas, Georgios Kyrtsos, Aurore Lalucq, Aušra Maldeikienė, Csaba Molnár, Denis Nesci, Lefteris Nikolaou-Alavanos, Piernicola Pedicini, Lídia Pereira, Eva Maria Poptcheva, Antonio Maria Rinaldi, Alfred Sant, Paul Tang, Irene Tinagli, Marco Zanni

Substitutes present for the final vote

Monika Hohlmeier, Margarida Marques, René Repasi, Andreas Schwab

Substitutes under Rule 209(7) present for the final vote

Clara Aguilera, Dietmar Köster

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

Key to symbols:

PROCEDURE – COMMITTEE RESPONSIBLE

Title

Amending Directive 2013/34/EU as regards the time limits for the adoption of sustainability reporting standards for certain sectors and for certain third-country undertakings

References

COM(2023)0596 – C9-0386/2023 – 2023/0368(COD)

Date submitted to Parliament

17.10.2023

Committee responsible

Date announced in plenary

JURI

20.11.2023

Committees asked for opinions

Date announced in plenary

AFET

20.11.2023

DEVE

20.11.2023

ECON

20.11.2023

Not delivering opinions

Date of decision

AFET

28.11.2023

DEVE

28.11.2023

Rapporteurs

Date appointed

Axel Voss

29.11.2023

Date adopted

24.1.2024

Result of final vote

–:

Members present for the final vote

Pascal Arimont, Gunnar Beck, Ilana Cicurel, Ibán García Del Blanco, Virginie Joron, Pierre Karleskind, Sergey Lagodinsky, Gilles Lebreton, Sabrina Pignedoli, Jiří Pospíšil, Franco Roberti, Raffaele Stancanelli, Adrián Vázquez Lázara, Axel Voss, Marion Walsmann, Tiemo Wölken

Substitutes present for the final vote

Jorge Buxadé Villalba, Pascal Durand, Angelika Niebler, Witold Pahl, Jana Toom

Substitutes under Rule 209(7) present for the final vote

Benoît Biteau, Christian Ehler

Date tabled

29.1.2024

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

Key to symbols: