The European Commission has put the Non-Financial Reporting (NFR) Directive under review as part of “A European Green Deal” introduced by Commission President Ursula von der Leyen in her political guidelines for the 2019-2024 Commission.
FERMA is preparing a response to the public consultation and additionally forming a committee of ESG experts from its membership to better advise the European institutions and participate in the legislative process. FERMA believes the NFR should be a business process that aligns reporting of non-financial risks with the organisation objectives . We believe that in this way, investors will be better informed about the sustainability of their investment decisions.
“A European Green Deal” is intended to guide Europe through the green transition. To achieve these ambitions, the Commission has now launched a number of concurrent initiatives, including the NFR review, that will enter into force sequentially over the next several months.
This package aims broadly to increase Europe’s 2030 targets, develop a Sustainable Europe Investment Plan and preserve Europe’s natural environment while ensuring a just transition for all Member States.
For example, at the beginning of March, the Commission unveiled the European Climate Law, enshrining its goal of achieving climate neutrality by 2050. Other Green Deal proposals were developed further in the new industrial strategy, published by the Commission earlier this month.
FERMA aims to support the implementation of the European Green Deal, alongside the Sustainable Development Goals and the Paris Agreement, while asking policymakers to ensure proportionality and practicality in their legislation. Professional risk management practices will help achieve a sustainable future, while reducing the costs of transition for businesses.
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