### (38) in its communication on the european green deal , the european commission committed to support businesses and other stakeholders in developing standardised natural capital accounting practices within the union and internationally , with the aim of ensuring appropriate management of environmental risks and mitigation opportunities , and reduce related transaction costs. the transparent project sponsored under the life programme is developing the first natural capital accounting methodology , which will make existing methods easier to compare and more transparent while lowering the threshold for companies to adopt and use the systems in support of future-proofing their business. the natural capital protocol is also an important reference in this field. while natural capital accounting methods serve principally to strengthen internal management decisions , they should be duly considered when establishing sustainability reporting standards. some natural capital accounting methodologies seek to assign a monetary value to the environmental impacts of companies’ activities , which may help users to better understand those impacts. it is therefore appropriate that sustainability reporting standards should be able to include monetised indicators of sustainability impacts if that is deemed necessary. ### (38) in its communication on the european green deal , the european commission committed to support businesses and other stakeholders in developing standardised natural capital accounting practices within the union and internationally , with the aim of ensuring appropriate management of environmental risks and mitigation opportunities , and reduce related transaction costs. the transparent project sponsored under the life programme is developing the first natural capital accounting methodology , which will make existing methods easier to compare and more transparent while lowering the threshold for companies to adopt and use the systems in support of future-proofing their business. the natural capital protocol is also an important reference in this field. while natural capital accounting methods serve principally to strengthen internal management decisions , they should be duly considered when establishing sustainability reporting standards , if the above-mentioned transparent project and natural capital protocol are made binding , once the pilot phases have been completed. some natural capital accounting methodologies seek to assign a monetary value to the environmental impacts of companies’ activities , which may help users to better understand those impacts. it is therefore appropriate that sustainability reporting standards should be able to include monetised indicators of sustainability impacts if that is deemed necessary , once the above-mentioned projects have been validated.


### (39) sustainability reporting standards should also take account of internationally recognised principles and frameworks on responsible business conduct , corporate social responsibility , and sustainable development , including the un sustainable development goals , the un guiding principles on business and human rights , the oecd guidelines for multinational enterprises , the oecd due diligence guidance for responsible business conduct and related sectoral guidelines , the un global compact , the tripartite declaration of principles of the international labour organisation concerning multinational enterprises and social policy , the iso 26000 standard on social responsibility , and the un principles for responsible investment. ### (39) sustainability reporting standards should also take account of internationally recognised principles and frameworks on responsible business conduct , corporate social responsibility , and sustainable development , including the un sustainable development goals , the un guiding principles on business and human rights , the oecd guidelines for multinational enterprises , the oecd due diligence guidance for responsible business conduct and related sectoral guidelines , the un global compact , the tripartite declaration of principles of the international labour organisation concerning multinational enterprises and social policy , the iso 26000 standard on social responsibility , and the un principles for responsible investment , although those instruments are not binding.


### (40) it should be ensured that the information reported by undertakings in accordance with the sustainability reporting standards meet the needs of users. the reporting standards should therefore specify the information that undertakings are to disclose on all major environmental factors , including their impacts and dependencies on climate , air , land , water and biodiversity. regulation (eu) 2020/852 provides a classification of the environmental objectives of the union. for reasons of coherence , it is appropriate to use a similar classification to identify the environmental factors that should be addressed by sustainability reporting standards. the reporting standards should consider and specify any geographical or other contextual information that undertakings should disclose to provide an understanding of their principal impacts on sustainability matters and the principal risks to the undertaking arising from sustainability matters. ### (40) it should be ensured that the information reported by undertakings in accordance with the sustainability reporting standards meet the needs of users. the reporting standards should therefore specify the information that undertakings are to disclose on all major environmental factors , including their impacts and dependencies on climate , air , land , water and biodiversity. regulation (eu) 2020/852 provides a classification of the environmental objectives of the union. for reasons of coherence , it is appropriate to use a similar classification to identify the environmental factors that should be addressed by sustainability reporting standards. the reporting standards should consider and specify any geographical or other contextual information that undertakings should disclose to provide an understanding of their principal impacts on sustainability matters and the principal risks to the undertaking arising from sustainability matters. these reporting standards must take into account the size of the undertaking , so that they do not pose an excessive burden for small and medium-sized enterprises.


### (40) it should be ensured that the information reported by undertakings in accordance with the sustainability reporting standards meet the needs of users. the reporting standards should therefore specify the information that undertakings are to disclose on all major environmental factors , including their impacts and dependencies on climate , air , land , water and biodiversity. regulation (eu) 2020/852 provides a classification of the environmental objectives of the union. for reasons of coherence , it is appropriate to use a similar classification to identify the environmental factors that should be addressed by sustainability reporting standards. the reporting standards should consider and specify any geographical or other contextual information that undertakings should disclose to provide an understanding of their principal impacts on sustainability matters and the principal risks to the undertaking arising from sustainability matters. ### (40) it should be ensured that the information reported by undertakings in accordance with the sustainability reporting standards meet the needs of users. the reporting standards should therefore specify the information that undertakings are to disclose on all major environmental factors , including their impacts and dependencies on climate , air , land , water and biodiversity. regulation (eu) 2020/852 provides a classification of the environmental objectives of the union. for reasons of coherence , it is appropriate to use a similar classification to identify the environmental factors that should be addressed by sustainability reporting standards. the reporting standards should consider and specify any geographical or other contextual information that undertakings should disclose to provide an understanding of their principal impacts on sustainability matters and the principal risks to the undertaking arising from sustainability matters. those reporting standards should take account of the size of the undertaking so that they do not impose a disproportionate bureaucratic burden.


### (43) sustainability reporting standards should specify the information that undertakings should disclose on social factors , including employee factors and human rights. such information should cover the impacts of undertakings on people , including on human health. the information that undertakings disclose about human rights should include information about forced labour in their value chains where relevant. reporting standards that address social factors should specify the information that undertakings should disclose with regard to the principles of the european pillar of social rights that are relevant to businesses , including equal opportunities for all and working conditions. the european pillar of social rights action plan adopted in march 2021 calls for stronger requirements on undertakings to report on social issues. the reporting standards should also specify the information that undertakings should disclose with regard to the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work , the fundamental conventions of the international labour organisation , and the charter of fundamental rights of the european union. ### (43) sustainability reporting standards should specify the information that undertakings should disclose on social factors , including employee factors , equality between women and men and human rights. such information should cover the impacts of undertakings on people , including on human health. the information that undertakings disclose about human rights should include information about forced labour in their value chains where relevant. reporting standards that address social factors should specify the information that undertakings should disclose with regard to the principles of the european pillar of social rights that are relevant to businesses , including equal opportunities for all and working conditions. the european pillar of social rights action plan adopted in march 2021 calls for stronger requirements on undertakings to report on social issues. the reporting standards should also specify the information that undertakings should disclose with regard to the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work , the fundamental conventions of the international labour organisation , and the charter of fundamental rights of the european union.


### (44) users need information about governance factors , including information on the role of an undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , the composition of such bodies , and an undertaking’s internal control and risk management systems , including in relation to the reporting process. users also need information about undertakings’ corporate culture and approach to business ethics , including anti-corruption and anti-bribery , and about their political engagements , including lobbying activities. information about the management of the undertaking and the quality of relationships with business partners , including payment practices relating to the date or period for payment , the rate of interest for late payment or the compensation for recovery costs referred to in directive 2011/7/eu of the european parliament and of the council62on late payment in commercial transactions , helps users to understand an undertaking’s risks as well as its impacts on sustainability matters. every year , thousands of businesses , especially smes , suffer administrative and financial burdens because they are paid late , or not at all. ultimately , late payments lead to insolvency and bankruptcy , with destructive effects on entire value chains. increasing information about payment practices should empower other undertakings to identify prompt and reliable payers , detect unfair payment practices , access information about the businesses they trade with , and negotiate fairer payment terms. ### (44) users need information about governance factors , including information on the role of an undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , the composition of such bodies , and an undertaking’s internal control and risk management systems , including in relation to the reporting process. users also need information about undertakings’ corporate culture and approach to business ethics , including anti-corruption and anti-bribery , and about their political engagements , including lobbying activities. in this context , it is also important to disclose information on activities relating to equal treatment and equal opportunities , as well as on combating harassment and sexual violence. information about the management of the undertaking and the quality of relationships with business partners , including payment practices relating to the date or period for payment , the rate of interest for late payment or the compensation for recovery costs referred to in directive 2011/7/eu of the european parliament and of the council62 on late payment in commercial transactions , helps users to understand an undertaking’s risks as well as its impacts on sustainability matters. every year , thousands of businesses , especially smes , suffer administrative and financial burdens because they are paid late , or not at all. ultimately , late payments lead to insolvency and bankruptcy , with destructive effects on entire value chains. increasing information about payment practices should empower other undertakings to identify prompt and reliable payers , detect unfair payment practices , access information about the businesses they trade with , and negotiate fairer payment terms.


### (51) article 20 of directive 2013/34/eu requires undertakings with securities listed on regulated markets to include a corporate governance statement in their management report , which has to contain among other information a description of the diversity policy applied by the undertaking in relation to its administrative , management and supervisory bodies. article 20 of directive 2013/34/eu leaves flexibility to undertakings to decide what aspects of diversity they report on. it does not explicitly oblige undertakings to include information on any particular aspect of diversity. in order progress towards a more gender-balanced participation in economic decision-making , it is necessary to ensure that undertakings with securities listed on regulated markets always report on their gender diversity policies and the implementation thereof. however , to avoid unnecessary administrative burden , those undertakings should have the possibility to report some of the information required by article 20 of directive 2013/34/eu alongside other sustainability-related information. ### (51) article 20 of directive 2013/34/eu requires undertakings with securities listed on regulated markets to include a corporate governance statement in their management report , which has to contain among other information a description of the diversity policy applied by the undertaking in relation to its administrative , management and supervisory bodies. article 20 of directive 2013/34/eu leaves flexibility to undertakings to decide what aspects of diversity they report on. it does not explicitly oblige undertakings to include information on any particular aspect of diversity. in order progress towards a more balanced participation in terms of non-discrimination on grounds of sex in economic decision-making , it is necessary to ensure that undertakings with securities listed on regulated markets always report on their policies on non-discrimination on grounds of sex and the implementation thereof. however , to avoid unnecessary administrative burden , those undertakings should have the possibility to report some of the information required by article 20 of directive 2013/34/eu alongside other sustainability-related information.


### (51) article 20 of directive 2013/34/eu requires undertakings with securities listed on regulated markets to include a corporate governance statement in their management report , which has to contain among other information a description of the diversity policy applied by the undertaking in relation to its administrative , management and supervisory bodies. article 20 of directive 2013/34/eu leaves flexibility to undertakings to decide what aspects of diversity they report on. it does not explicitly oblige undertakings to include information on any particular aspect of diversity. in order progress towards a more gender-balanced participation in economic decision-making , it is necessary to ensure that undertakings with securities listed on regulated markets always report on their gender diversity policies and the implementation thereof. however , to avoid unnecessary administrative burden , those undertakings should have the possibility to report some of the information required by article 20 of directive 2013/34/eu alongside other sustainability-related information. ### (51) article 20 of directive 2013/34/eu requires undertakings with securities listed on regulated markets to include a corporate governance statement in their management report , which has to contain among other information a description of the diversity policy applied by the undertaking in relation to its administrative , management and supervisory bodies. article 20 of directive 2013/34/eu leaves flexibility to undertakings to decide what aspects of diversity they report on. it does not explicitly oblige undertakings to include information on any particular aspect of diversity. to avoid unnecessary administrative burden , those undertakings should have the possibility to report some of the information required by article 20 of directive 2013/34/eu alongside other sustainability-related information.


### (51) article 20 of directive 2013/34/eu requires undertakings with securities listed on regulated markets to include a corporate governance statement in their management report , which has to contain among other information a description of the diversity policy applied by the undertaking in relation to its administrative , management and supervisory bodies. article 20 of directive 2013/34/eu leaves flexibility to undertakings to decide what aspects of diversity they report on. it does not explicitly oblige undertakings to include information on any particular aspect of diversity. in order progress towards a more gender-balanced participation in economic decision-making , it is necessary to ensure that undertakings with securities listed on regulated markets always report on their gender diversity policies and the implementation thereof. however , to avoid unnecessary administrative burden , those undertakings should have the possibility to report some of the information required by article 20 of directive 2013/34/eu alongside other sustainability-related information. ### (51) article 20 of directive 2013/34/eu requires undertakings with securities listed on regulated markets to include a corporate governance statement in their management report , which has to contain among other information a description of the diversity policy applied by the undertaking in relation to its administrative , management and supervisory bodies. article 20 of directive 2013/34/eu leaves flexibility to undertakings to decide what aspects of diversity they report on. it does not explicitly oblige undertakings to include information on any particular aspect of diversity. in order progress towards a more balanced participation in terms of non-discrimination for reasons of gender in economic decision-making , it is necessary to ensure that undertakings with securities listed on regulated markets always report on their policies regarding non-discrimination for reasons of gender and the implementation thereof. however , to avoid unnecessary administrative burden , those undertakings should have the possibility to report some of the information required by article 20 of directive 2013/34/eu alongside other sustainability-related information.


### (53) the assurance profession distinguishes between limited and reasonable assurance engagements. the conclusion of a limited assurance engagement is usually provided in a negative form of expression by stating that no matter has been identified by the practitioner to conclude that the subject matter is materially misstated. the auditor performs fewer tests than in a reasonable assurance engagement. the amount of work for a limited assurance engagement is therefore less than for reasonable assurance. the work effort in a reasonable assurance engagement entails extensive procedures including consideration of internal controls of the reporting undertaking and substantive testing , and is therefore significantly higher than in a limited assurance engagement. the conclusion of this type of engagement is usually provided in a positive form of expression and states an opinion on the measurement of the subject matter against previously defined criteria. article 19a(5) and article 29a(5) of directive 2013/34/eu require member states to ensure that the statutory auditor or audit firm checks whether the non-financial statement or the separate report has been provided. it does not require that an independent provider of assurance services verifies the information , although it allows member states to require such verification where they wish to. the absence of an assurance requirement on sustainability reporting , in contrast to the requirement for the statutory auditor to perform a reasonable assurance engagement on financial statements , would threaten the credibility of the sustainability information disclosed , thus failing to meet the needs of the intended users of that information. although the objective is to have a similar level of assurance for financial and sustainability reporting , the absence of a commonly agreed standard for the assurance of sustainability reporting creates the risk of different understandings and expectations of what a reasonable assurance engagement would consist of for different categories of sustainability information , especially with regard to forward looking and qualitative disclosures. therefore , a progressive approach to enhance the level of the assurance required for sustainability information should be considered , starting with an obligation on the statutory auditor or audit firm to express an opinion about the compliance of the sustainability reporting with union requirements based on a limited assurance engagement. this opinion should cover the compliance of the sustainability reporting with union sustainability reporting standards , the process carried out by the undertaking to identify the information reported pursuant to the sustainability reporting standards and compliance with the requirement to mark-up sustainability reporting. the auditor should also assess whether the undertaking’s reporting complies with the reporting requirements of article 8 of regulation (eu) 2020/852. to guarantee a common understanding and expectations of what a reasonable assurance engagement would consist of , the statutory auditor or audit firm should be required to express an opinion based on a reasonable assurance engagement about the compliance of the sustainability reporting with union requirements , should the commission adopt assurance standards for reasonable assurance of sustainability reporting. this would also allow for the progressive development of the assurance market for sustainability information , and of undertakings’ reporting practices. finally , this progressive approach would phase in the increase in costs for reporting undertakings , given that reasonable assurance is more costly than limited assurance. ### (53) the assurance profession distinguishes between limited and reasonable assurance engagements. the conclusion of a limited assurance engagement is usually provided in a negative form of expression by stating that no matter has been identified by the practitioner to conclude that the subject matter is materially misstated. the auditor performs fewer tests than in a reasonable assurance engagement. the amount of work for a limited assurance engagement is therefore less than for reasonable assurance. the work effort in a reasonable assurance engagement entails extensive procedures including consideration of internal controls of the reporting undertaking and substantive testing , and is therefore significantly higher than in a limited assurance engagement. furthermore , reasonable assurance would involve increased costs for reporting undertakings. currently , limited assurance of sustainability can be regarded as the only way forward that does not involve excessive additional costs for undertakings , in particular for small and medium-sized businesses. we hope that in the future market conditions will allow more extensive use of reasonable assurance with a more balanced cost-benefit ratio. article 19a(5) and article 29a(5) of directive 2013/34/eu require member states to ensure that the statutory auditor or audit firm checks whether the non-financial statement or the separate report has been provided. it does not require that an independent provider of assurance services verifies the information , although it allows member states to require such verification where they wish to.


### (19) ’intangibles’ means non-physical resources that contribute to the undertaking’s value creation; ### deleted


### the resilience of the undertaking's business model and strategy to risks related to sustainability matters; ### deleted


### (ii) the opportunities for the undertaking related to sustainability matters; ### (ii) the strengths , weaknesses , opportunities and threats for the undertaking related to sustainability matters;


### the member state by which the undertaking that is exempted from the obligations set out in paragraphs 1 to 4 is governed , may require that the consolidated management report referred to in the first subparagraph of this paragraph is published in an official language of the member state or in a language customary in the sphere of international finance , and that any necessary translation into those languages is certified. ### the member state by which the parent undertaking that is exempted from the obligations set out in paragraphs 1 to 4 is governed may require that the consolidated management report referred to in in the first subparagraph of this paragraph is published in its official language or in a language customary in the sphere of international finance , and that any necessary translation into those languages is certified.


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process implemented with regard to sustainability matters , including as regards equality between women and men;


### 1. large undertakings and , as of 1 january 2026 , small and medium-sized undertakings which are undertakings referred to in article 2 , point (1) , point (a) , shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters , and information necessary to understand how sustainability matters affect the undertaking’s development , performance and position. ### 1. large undertakings shall include in the management report , or other reports in keeping with the preferences of the member states , information necessary to understand the undertaking’s impacts on sustainability matters , and information necessary to understand how sustainability matters affect the undertaking’s development , performance and position. as of 1 january 2026 , the appropriateness of extending these provisions to the small and medium-sized enterprises referred to in article 2 , point (1) , point (a) shall be assessed.


### 1. large undertakings and , as of 1 january 2026 , small and medium-sized undertakings which are undertakings referred to in article 2 , point (1) , point (a) , shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters , and information necessary to understand how sustainability matters affect the undertaking’s development , performance and position. ### 1. large undertakings and shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters , and information necessary to understand how sustainability matters affect the undertaking’s development , performance and position. when sustainability matters have a negative impact on the development , performance and position of the undertaking , it shall be clearly indicated.


### (iii) the plans of the undertaking to ensure that its business model and strategy are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement; ### (iii) the plans of the undertaking to ensure that its business model and strategy are compatible with the transition to a sustainable economy.


### (iii) the plans of the undertaking to ensure that its business model and strategy are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement; ### (iii) the plans of the undertaking to ensure that its business model and strategy are compatible with the transition to a sustainable economy;


### a description of the role of the administrative , management and supervisory bodies with regard to sustainability matters; ### a description of the role of the administrative , management and supervisory bodies with regard to sustainability matters , when applicable;


### (iii) any actions taken , and the result of such actions , to prevent , mitigate or remediate actual or potential adverse impacts; ### deleted


### undertakings shall also disclose information on intangibles , including information on intellectual , human , and social and relationship capital. ### deleted


### undertakings shall report the process carried out to identify the information that they have included in the management report in accordance with paragraph 1 and in this process they shall take account of short , medium and long-term horizons. ### undertakings shall report the process carried out to identify the information that they have included in the management report in accordance with paragraph 1 and in this process they may , if necessary , take account of short , medium and long-term horizons.


### where appropriate , the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s value chain , including the undertaking’s own operations , products and services , its business relationships and its supply chain. ### where appropriate , the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s value chain , including the undertaking’s own operations , products and services , its business relationships and its supply chain , to the extent possible. this provision should not be construed as an obligation to share business sensitive information.


### member states may allow information relating to impending developments or matters in the course of negotiation to be omitted in exceptional cases where , in the duly justified opinion of the members of the administrative , management and supervisory bodies , acting within the competences assigned to them by national law and having collective responsibility for that opinion , the disclosure of such information would be seriously prejudicial to the commercial position of the undertaking , provided that such omission does not prevent a fair and balanced understanding of the undertaking's development , performance , position and impact of its activity. ### member states shall allow information relating to impending developments or matters in the course of negotiation to be omitted in exceptional cases where , in the duly justified opinion of the members of the administrative , management and supervisory bodies , acting within the competences assigned to them by national law and having collective responsibility for that opinion , the disclosure of such information would be seriously prejudicial to the commercial position of the undertaking , provided that such omission does not prevent a fair and balanced understanding of the undertaking's development , performance , position and impact of its activity.


### 5. by way of derogation from article 19a , paragraphs 1 to 4 , small and medium sized undertakings referred to in article 2 , point (1) , point (a) , may report in accordance with the sustainability reporting standards for small and medium sized undertakings referred to in article 19c. ### 5. by way of derogation from article 19a , paragraphs 1 to 4 , small and medium sized undertakings referred to in article 2 , point (1) , point (a) , may voluntarily report in accordance with the sustainability reporting standards for small and medium sized undertakings referred to in article 19c.


### the member state by which the undertaking that is exempted from the obligations set out in paragraphs 1 to 4 is governed , may require that the consolidated management report referred to in the first subparagraph of this paragraph is published in an official language of the member state or in a language customary in the sphere of international finance , and that any necessary translation into those languages is certified. ### deleted


### 1. large undertakings and , as of 1 january 2026 , small and medium-sized undertakings which are undertakings referred to in article 2 , point (1) , point (a) , shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters , and information necessary to understand how sustainability matters affect the undertaking’s development , performance and position. ### 1. large undertakings established in the european union and large undertakings not established in the european union that operate in the european union shall be required to provide material information necessary to make an informed assessment of the undertaking’s impacts on sustainability matters , and information necessary to make an informed assessment of how sustainability matters affect the undertaking’s development , performance and position , by including it in either the management report or a separate report as defined in subparagraph 8 of this article.


### undertakings shall also disclose information on intangibles , including information on intellectual , human , and social and relationship capital. ### undertakings shall also disclose information on intangibles that are material in that they constitute a source for the creation , preservation or erosion of the value of the undertaking. for the purposes of this article , only information shall be provided in narrative reporting on material intangibles for which there are existing and well-established reporting metrics and that is not already contained in financial reporting. this information shall contain , as applicable , information on human capital , intellectual property , the human and social quality of undertakings and relationships with stakeholders , brand value and the company’s reputation.


### 3. the information referred to in paragraphs 1 and 2 shall contain forward-looking and retrospective information , and qualitative and quantitative information. ### 3. the information referred to in paragraphs 1 and 2 shall contain qualitative and quantitative information.


### 4. undertakings shall report the information referred to in paragraphs 1 to 3 in accordance with the sustainability reporting standards referred to in article 19b. ### 4. undertakings shall report the information referred to in paragraphs 1 to 3 in accordance with the sustainability reporting standards referred to in article 19b. however , where suitably justified , european undertakings may opt to apply international standards that are recognised as equivalent at european level.


### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities; ### equal opportunities for all , including non-discrimination on grounds of sex and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities;


### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union. ### (iii) respect for the human rights , fundamental freedoms , democratic principles and , provided that they are binding following ratification by the relevant member state , standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union.


### the work of global standard-setting initiatives for sustainability reporting , and existing standards and frameworks for natural capital accounting , responsible business conduct , corporate social responsibility , and sustainable development; ### the work of global standard-setting initiatives for sustainability reporting , and existing standards and frameworks for natural capital accounting , responsible business conduct , corporate social responsibility , and sustainable development , while differentiating those standards that are binding from that work and those frameworks which are not;


### commission recommendation 2013/179/eu*12; ### commission recommendation 2013/179/eu*12 , taking into account the non-binding nature of that recommendation;


### the commission shall adopt delegated acts in accordance with article 49 to provide for sustainability reporting standards proportionate to the capacities and characteristics of small and medium-sized undertakings. those sustainability reporting standards shall specify which information referred to in articles 19a and 29a small and medium-sized undertakings referred to in article 2 , point (1)(a) shall report. they shall take into account the criteria set out in article 19b , paragraphs 2 and 3. they shall also , where relevant , specify the structure in which that information shall be reported. ### the commission , having consulted efrag , shall adopt delegated acts in accordance with article 49 to provide for sustainability reporting standards proportionate to the capacities and characteristics of small and medium-sized undertakings. those sustainability reporting standards shall specify which information referred to in articles 19a and 29a small and medium-sized undertakings referred to in article 2 , point (1)(a) shall report. they shall take into account the criteria set out in article 19b , paragraphs 2 and 3. they shall also , where relevant , specify the structure in which that information shall be reported.


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , healthy , flexible working time , parental leave for mothers and fathers , and a safe and well-adapted work environment , including tackling psychological harassment and sexual violence;


### pollution; ### deleted


### specify the information that undertakings are to disclose about social factors , including information about: ### specify the information that undertakings are to disclose about social factors:


### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities; ### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , employment and inclusion of people with opposing political views , and employment and inclusion of people with disabilities;


### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities; ### equal opportunities for all , including non-discrimination for reasons of gender and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities;


### the commission shall adopt delegated acts in accordance with article 49 to provide for sustainability reporting standards proportionate to the capacities and characteristics of small and medium-sized undertakings. those sustainability reporting standards shall specify which information referred to in articles 19a and 29a small and medium-sized undertakings referred to in article 2 , point (1)(a) shall report. they shall take into account the criteria set out in article 19b , paragraphs 2 and 3. they shall also , where relevant , specify the structure in which that information shall be reported. ### the commission shall , following prior consultation of efrag , adopt delegated acts in accordance with article 49 to provide for sustainability reporting standards proportionate to the capacities and characteristics of small and medium-sized undertakings. those sustainability reporting standards shall specify which information referred to in articles 19a and 29a small and medium-sized undertakings referred to in article 2 , point (1)(a) shall report. they shall take into account the criteria set out in article 19b , paragraphs 2 and 3. they shall also , where relevant , specify the structure in which that information shall be reported. efrag’s advisory opinion shall be shared with the european parliament and the council.


### a description of the diversity policy applied in relation to the undertaking's administrative , management and supervisory bodies with regard to gender and other aspects such as , age , or educational and professional backgrounds , the objectives of that diversity policy , how it has been implemented and the results in the reporting period. if no such policy is applied , the statement shall contain an explanation as to why this is the case.; ### a description of the non-discrimination policy applied in relation to the undertaking's administrative , management and supervisory bodies with regard to sex and other aspects such as , age , or educational and professional backgrounds , the objectives of that non-discrimination policy , how it has been implemented and the results in the reporting period. if no such policy is applied , the statement shall contain an explanation as to why this is the case.;


### a description of the diversity policy applied in relation to the undertaking's administrative , management and supervisory bodies with regard to gender and other aspects such as , age , or educational and professional backgrounds , the objectives of that diversity policy , how it has been implemented and the results in the reporting period. if no such policy is applied , the statement shall contain an explanation as to why this is the case.; ### a description of the diversity and social inclusion policy applied in relation to the undertaking's administrative , management and supervisory bodies with regard to gender equality , support for marginalised social groups and other aspects such as , age or educational and professional backgrounds , the objectives of that diversity policy , how it has been implemented and the results in the reporting period. if no such policy is applied , the statement shall contain an explanation as to why this is the case.;


### a description of the diversity policy applied in relation to the undertaking's administrative , management and supervisory bodies with regard to gender and other aspects such as , age , or educational and professional backgrounds , the objectives of that diversity policy , how it has been implemented and the results in the reporting period. if no such policy is applied , the statement shall contain an explanation as to why this is the case; ### a description of the non-discrimination policy applied in relation to the undertaking's administrative , management and supervisory bodies with regard to gender and other aspects such as , age , or educational and professional backgrounds , the objectives of that non-discrimination policy , how it has been implemented and the results in the reporting period. if no such policy is applied , the statement shall contain an explanation as to why this is the case;


### the resilience of the group's business model and strategy to risks related to sustainability matters; ### deleted


### (ii) the opportunities for the group related to sustainability matters; ### (ii) the strengths , weaknesses , opportunities and threats for the group related to sustainability matters;


### 1. parent undertakings of a large group shall include in the consolidated management report information necessary to understand the group's impacts on sustainability matters , and information necessary to understand how sustainability matters affect the group's development , performance and position. ### 1. parent undertakings of a large group shall include in the consolidated management report information necessary to understand the group's impacts on social , economic and environmental sustainability matters , and information necessary to understand how sustainability matters affect the group's development , performance and position.


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process implemented with regard to sustainability matters , including as regards equality between women and men;


### (iii) the plans of the group to ensure that the group’s business model and strategy compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement; ### (iii) the plans of the group to ensure that the group’s business model and strategy compatible with the transition to a sustainable economy;


### parent undertakings shall also report information on intangibles , including information on intellectual , human , and social and relationship capital. ### deleted


### member states may allow information relating to impending developments or matters in the course of negotiation to be omitted in exceptional cases where , in the duly justified opinion of the members of the administrative , management and supervisory bodies , acting within the competences assigned to them by national law and having collective responsibility for that opinion , the disclosure of such information would be seriously prejudicial to the commercial position of the group , provided that such omission does not prevent a fair and balanced understanding of the group's development , performance , position and impact of its activity. ### member states shall allow information relating to impending developments or matters in the course of negotiation to be omitted in exceptional cases where , in the duly justified opinion of the members of the administrative , management and supervisory bodies , acting within the competences assigned to them by national law and having collective responsibility for that opinion , the disclosure of such information would be seriously prejudicial to the commercial position of the group , provided that such omission does not prevent a fair and balanced understanding of the group's development , performance , position and impact of its activity.


### the member state by which the parent undertaking that is exempted from the obligations set out in paragraphs 1 to 4 is governed may require that the consolidated management report referred to in in the first subparagraph of this paragraph is published in its official language or in a language customary in the sphere of international finance , and that any necessary translation into those languages is certified. ### deleted


### parent undertakings shall also report information on intangibles , including information on intellectual , human , and social and relationship capital. ### parent undertakings shall also report information on intangibles that are material in that they constitute a source for the creation , preservation or erosion of the value of the undertaking. for the purposes of this article , only information shall be provided in narrative reporting on material intangibles for which there are existing and well-established reporting metrics and that is not already contained in financial reporting. this information shall contain , as applicable , information on human capital , intellectual property , the human and social quality of undertakings and relationships with stakeholders , brand value and the group’s reputation.


### 3. the information referred to in paragraphs 1 and 2 shall contain forward-looking information and information about past performance , and qualitative and quantitative information. this information shall take into account short , medium and long-term time horizons , where appropriate. ### 3. the information referred to in paragraphs 1 and 2 shall contain qualitative and quantitative information. this information shall take into account short , medium and long-term time horizons , where appropriate.


### the information referred to in paragraphs 1 and 2 shall include information about the group’s value chain , including its own operations , its products and services , its business relationships and its supply chain , where appropriate. ### deleted


### the level of cooperation of the natural person or legal entity responsible with the competent authority; ### deleted


### ‘the commission shall , in accordance with the procedure referred to in article 27(2) , take the necessary decisions on the equivalence of accounting standards and on the equivalence of sustainability reporting standards as referred to in article 19b of directive 2013/34/eu which are used by third-country issuers under the conditions set out in article 30(3). if the commission decides that the accounting standards or the sustainability reporting standards of a third country are not equivalent , it may allow the issuers concerned to continue using such accounting standards during an appropriate transitional period. ### ‘the commission shall , in accordance with the procedure referred to in article 27(2) , take the necessary decisions on the equivalence of accounting standards and on the equivalence of sustainability reporting standards as referred to in article 19b of directive 2013/34/eu which are used by third-country issuers under the conditions set out in article 30(3). if the commission decides , having obtained an opinion from efrag , that the accounting standards or the sustainability reporting standards of a third country are not equivalent , it may allow the issuers concerned to continue using such accounting standards during an appropriate transitional period.


### in the context of the third subparagraph , the commission shall also adopt , by means of delegated acts adopted in accordance with paragraphs 2a , 2b and 2c of article 27 , and subject to the conditions laid down in articles 27a and 27b , measures aimed at establishing general equivalence criteria regarding accounting standards and sustainability reporting standards relevant to issuers of more than one country.’; ### in the context of the third subparagraph , the commission shall also adopt , by means of delegated acts adopted in accordance with paragraphs 2a , 2b and 2c of article 27 , and subject to the conditions laid down in articles 27a and 27b , measures aimed at establishing general equivalence criteria regarding accounting standards and sustainability reporting standards relevant to issuers of more than one country , having obtained an opinion from efrag.’;


### the aptitude test shall be conducted in one of the languages permitted by the language rules applicable in the host member state concerned. it shall cover only the statutory auditor's adequate knowledge of the laws and regulations of that host member state in so far as it is relevant to statutory audits and assurance engagements of sustainability reporting; ### the aptitude test shall be conducted in one of the official languages of the european union. it shall cover only the statutory auditor's adequate knowledge of the laws and regulations of that host member state in so far as it is relevant to statutory audits and assurance engagements of sustainability reporting;


### the aptitude test shall be conducted in one of the languages permitted by the language rules applicable in the host member state concerned. it shall cover only the statutory auditor's adequate knowledge of the laws and regulations of that host member state in so far as it is relevant to statutory audits and assurance engagements of sustainability reporting. ### the aptitude test shall be conducted in one of the eu official languages. it shall cover only the statutory auditor's adequate knowledge of the laws and regulations of that host member state in so far as it is relevant to statutory audits and assurance engagements of sustainability reporting.


### 2. the commission shall be empowered to adopt , by means of delegated acts in accordance with article 48a , the assurance standards referred to in paragraph 1 in order to set out the procedures that the auditor shall perform in order to draw its conclusions on the assurance of sustainability reporting , including engagement planning , risk consideration and response to risks and type of conclusions to be included in the audit report. ### 2. the commission shall be empowered to adopt , by means of delegated acts in accordance with article 48a and having obtained an opinion from efrag , the assurance standards referred to in paragraph 1 in order to set out the procedures that the auditor shall perform in order to draw its conclusions on the assurance of sustainability reporting , including engagement planning , risk consideration and response to risks and type of conclusions to be included in the audit report.


### 3. where the commission adopts standards for reasonable assurance , the opinion referred to in article 34(1) , second subparagraph , point (aa) of directive 2013/34/eu shall be based on a reasonable assurance engagement.’; ### 3. where the commission adopts standards for reasonable assurance , the opinion referred to in article 34(1) , second subparagraph , point (aa) of directive 2013/34/eu shall be based on a reasonable assurance engagement; however , in relation to undertakings with fewer than 50 workers the reasonable assurance engagement shall be optional.’;


### 3. where the commission adopts standards for reasonable assurance , the opinion referred to in article 34(1) , second subparagraph , point (aa) of directive 2013/34/eu shall be based on a reasonable assurance engagement. ### 3. where the commission adopts standards for reasonable assurance , the opinion referred to in article 34(1) , second subparagraph , point (aa) of directive 2013/34/eu shall be based on a reasonable assurance engagement; however , the reasonable assurance engagement shall be voluntary for companies with fewer than 50 employees.


### 3. where the commission adopts standards for reasonable assurance , the opinion referred to in article 34(1) , second subparagraph , point (aa) of directive 2013/34/eu shall be based on a reasonable assurance engagement.’; ### deleted


### (32) undertakings under the scope of articles 19a(1) and 29a(1) of directive 2013/34/eu may rely on national , union-based or international reporting frameworks , and where they do so , they have to specify which frameworks they relied upon. however , directive 2013/34/eu does not require undertakings to use a common reporting framework or standard , and it does not prevent undertakings from choosing not to use any reporting framework or standards at all. as required by article 2 of directive 2014/95/eu , the commission published in 2017 non-binding guidelines for undertakings under the scope of that directive52. in 2019 , the commission published additional guidelines , specifically on reporting climate-related information53. the climate reporting guidelines explicitly incorporated the recommendations of the task force on climate-related financial disclosures. available evidence indicates that those non-binding guidelines did not have a significant impact on the quality of non-financial reporting by undertakings under the scope of articles 19a and 29a of directive 2013/34/eu. the voluntary nature of the guidelines means that undertakings are free to apply them or not. the guidelines can therefore not ensure on their own the comparability of information disclosed by different undertakings or the disclosure of all information that users consider relevant. that is why there is a need for mandatory common reporting standards to ensure that information is comparable and that all relevant information is disclosed. building on the double-materiality principle , standards should cover all information that is material to users. common reporting standards are also necessary to enable the audit and digitalisation of sustainability reporting and to facilitate its supervision and enforcement. the development of mandatory common sustainability reporting standards is necessary to progress to a situation in which sustainability information has a status comparable to that of financial information. ### (32) undertakings under the scope of articles 19a(1) and 29a(1) of directive 2013/34/eu may rely on national , union-based or international reporting frameworks , and where they do so , they have to specify which frameworks they relied upon. however , directive 2013/34/eu does not require undertakings to use a common reporting framework or standard , and it does not prevent undertakings from choosing not to use any reporting framework or standards at all. as required by article 2 of directive 2014/95/eu , the commission published in 2017 non-binding guidelines for undertakings under the scope of that directive52. in 2019 , the commission published additional guidelines , specifically on reporting climate-related information53. the climate reporting guidelines explicitly incorporated the recommendations of the task force on climate-related financial disclosures. available evidence indicates that those non-binding guidelines did not have a significant impact on the quality of non-financial reporting by undertakings under the scope of articles 19a and 29a of directive 2013/34/eu. the voluntary nature of the guidelines means that undertakings are free to apply them or not. the guidelines can therefore not ensure on their own the comparability of information disclosed by different undertakings or the disclosure of all information that users consider relevant. that is why there is a need for mandatory common reporting standards to ensure that information is comparable and that all relevant information is disclosed. building on the double-materiality principle , standards should cover all information that is material to users. common reporting standards are also necessary to enable the audit and digitalisation of sustainability reporting and to facilitate its supervision and enforcement. the development of mandatory common sustainability reporting standards is necessary to progress to a situation in which sustainability information has a status comparable to that of financial information. when defining such standards , it is essential to give due consideration to the main sustainability reporting standards used worldwide today , which represent an established market practice.


### member states shall provide that the provisions referred to in the first subparagraph shall apply for financial years starting on or after 1 january 2023. ### member states shall provide that the provisions referred to in the first subparagraph shall apply for financial years starting from:


### member states shall provide that the provisions referred to in the first subparagraph shall apply for financial years starting on or after 1 january 2023 ### member states shall provide that the provisions referred to in the first subparagraph shall apply for financial years starting on or after 1 january 2024


### article 4 of this directive shall apply to financial years starting on or after 1 january 2023. ### article 4 of this directive shall apply to financial years starting on or after 1 january 2027.


### (50) article 19a(4) of directive 2013/34/eu enables member states to exempt undertakings from including in the management report the non-financial statement required under article 19a(1). member states may do so where the undertaking concerned prepares a separate report that is published together with the management report in accordance with article 30 of that directive , or where that report is made publicly available on the undertaking's website within a reasonable period of time not exceeding 6 months , after the balance sheet date , and is referred to in the management report. the same possibility exists for the consolidated non-financial statement referred to in article 29(a)(4) of directive 2013/34/eu. twenty member states have used that option. the possibility to publish a separate report hinders , however , the availability of information that connects financial and information on sustainability matters. it also hinders the findability and accessibility of information for users , especially investors , who are interested in both financial and sustainability information. possible different publication times for financial and sustainability information exacerbate this problem. publication in a separate report can also give the impression , internally and externally , that sustainability information belongs to a category of less relevant information , which can impact negatively on the perceived reliability of the information. undertakings should therefore report sustainability information in the management report and member states should no longer be allowed to exempt undertakings from the obligation to include in the management report information on sustainability matters. such obligation also helps to clarify the role of national competent authorities in supervising sustainability reporting , as part of the management report , in accordance with directive 2004/109/ec. in addition , undertakings required to report sustainability information should in no case be exempted from the obligation to publish the management report as it is important to ensure that sustainability information is publically available. ### (50) article19a(4) of directive 2013/34/eu enables member states to exempt undertakings from including in the management report the non-financial statement required under article 19a(1). member states may do so where the undertaking concerned prepares a separate report that is published together with the management report in accordance with article 30 of that directive , or where that report is made publicly available on the undertaking's website within a reasonable period of time not exceeding 6 months , after the balance sheet date , and is referred to in the management report. the same possibility exists for the consolidated non-financial statement referred to in article 29(a)(4) of directive 2013/34/eu. twenty member states have used that option. undertakings should be allowed to decide whether to report sustainability information in the management report or in a separate non-financial report , provided that this is submitted within six months of the balance sheet date. member states should no longer be allowed to exempt undertakings from the obligation to provide information on sustainability matters. such obligation helps to clarify the role of national competent authorities in supervising sustainability reporting , as part of the management report , in accordance with directive 2004/109/ec. in addition , undertakings required to report sustainability information should in no case be exempted from the obligation to publish the management report as it is important to ensure that sustainability information is publically available.


### the audit report , signed by the person or persons responsible for carrying out the work set out in paragraphs 1 and 2 of article 34 of directive 2013/34/eu shall be disclosed in full to the public together with the annual financial report. ### the audit report , signed by the person or persons responsible for carrying out the work set out in paragraphs 1 and 2 of article 34 of directive 2013/34/eu shall be disclosed in full to the public either together with the annual financial report or separately but within six months of the publication of the balance sheet date (in accordance with article 19a(7)(a).


### 1. member states shall bring into force the laws , regulations and administrative provisions necessary to comply with articles 1 to 3 of this directive by 1 december 2022. they shall immediately inform the commission thereof. ### 1. member states shall bring into force the laws , regulations and administrative provisions necessary to comply with articles 1 to 3 of this directive within 18 months of the entry into force of this directive. they shall immediately inform the commission thereof.


### 1. member states shall bring into force the laws , regulations and administrative provisions necessary to comply with articles 1 to 3 of this directive by 1 december 2022. they shall immediately inform the commission thereof. ### 1. member states shall bring into force the laws , regulations and administrative provisions necessary to comply with articles 1 to 3 of this directive by 1 december 2023. they shall immediately inform the commission thereof.


### a. non-profit organisations (npos) are increasingly involved in economic activities and contribute to the rapid development of the social economy , bringing societal benefits in terms of citizens welfare , the fight against climate change , quality employment and the fight against social exclusion and discrimination; whereas the development of the social economy directly contributes to the strengthening of the single market; ### a. there are non-profit organisations (npos) which make positive contributions to society in multiple areas , such as social economy , quality employment , the fight against social exclusion and discrimination , or helping persons with disabilities;


### b. whereas digitalisation , the ongoing global covid-19 pandemic , inequalities , community development , especially in marginalised areas , social welfare and health services , the needs of persons with disabilities and the fight against poverty , social exclusion , long-term unemployment , gender inequality and specific environmental tasks offer great potential for the activity of the npos; ### b. whereas digitalisation , the ongoing global covid-19 pandemic , inequalities , community development , especially in marginalised areas , social welfare and health services , the needs of persons with disabilities and the fight against poverty , social exclusion , long-term unemployment , potential inequality between men and women both within and outside the union and specific environmental tasks offer great potential for the activity of the npos;


### b. whereas digitalisation , the ongoing global covid-19 pandemic , inequalities , community development , especially in marginalised areas , social welfare and health services , the needs of persons with disabilities and the fight against poverty , social exclusion , long-term unemployment , gender inequality and specific environmental tasks offer great potential for the activity of the npos; ### b. whereas digitalisation , the ongoing global covid-19 pandemic , inequalities , community development , especially in marginalised areas , social welfare and health services , the needs of persons with disabilities and the fight against poverty , social exclusion , including rejection of the older population , long-term unemployment , gender inequality and specific environmental tasks offer great potential for the activity of the npos;


### b. npos play a central role in democracy by exercising public oversight over political power , articulating aspirations present in society , carrying out advocacy , contributing to informed policy-making and fostering active citizenship; ### b. some npos play a central role in democracy by exercising public oversight over political power , articulating aspirations present in society , carrying out advocacy , contributing to informed policy-making and fostering active citizenship;


### d. article 12 of the charter of fundamental rights guarantees the right to freedom of association at all levels; ### d. article 12 of the charter of fundamental rights guarantees the right to freedom of association at all levels , whereas this right is guaranteed in national legislations throughout the union;


### e. restrictions of the space in which they operate have been reported by npos throughout the union , related to the regulatory environment under which they operate , their finances and funding , their right to participation and to an unsafe environment with increasing attacks , including negative discourse stigmatising npos; ### deleted


### j. whereas , even though they are referred to in the treaty on european union and in the treaty on the functioning of the european union as well as in numerous judgement of the court of justice of the european union , npos do not yet have their own specific statute in union law; ### j. whereas npos are referred to in the treaty on european union and in the treaty on the functioning of the european union as well as in numerous judgement of the court of justice of the european union;


### k. whereas since the 1990s , the union institutions have tried to introduce union legal statutes for different types of npos but without success; ### deleted


### 1. calls for a legislative proposal establishing a legal statute for npos with cross-border activities , including a label or status for such organisations; believes that the scope of the legislative proposal should cover more than the classic non-profit sector , should focus on the aspect of the public interest purpose , and should including organisations in the so-called “third sector” or the social economy , even if not all are fully non-profit; ### deleted


### 1. calls on the commission to put forward a legislative package creating a statute for european associations and laying down common rules and minimum standards for npos to exercise the right to freedom of assembly and to remove the barriers precluding npos from playing their fundamental role in society and contributing to the strengthening of the single market; ### deleted


### 2. stresses that the legislative proposal should identify the requirements for the acquisition and maintenance of the label or status in accordance with national law , leaving member states the freedom to provide for stricter or additional requirements , and the label or status should be a status of national law , although with a union (cross-border) value and , in particular , should be made available only to organisations that: ### deleted


### 2. highlights that the definition of common measures for npos will enable coherent judicial review at union level and lay down the foundations for future case law that will help strengthen union-wide standards; ### deleted


### are subject to specific governance and transparency obligations , ### are subject to specific governance , responsibility and transparency obligations ,


### 3. considers that the long-overdue creation of a statute for european associations is a crucial step in fostering civic space at union level , cross-border cooperation and dialogue; points out that such a statute would help european civil society to structure itself; considers that european associations could be instrumental in enhancing civic participation in union policy-making; ### deleted


### 3. considers that the long-overdue creation of a statute for european associations is a crucial step in fostering civic space at union level , cross-border cooperation and dialogue; points out that such a statute would help european civil society to structure itself; considers that european associations could be instrumental in enhancing civic participation in union policy-making; ### 3. considers that the creation of a statute for european associations is not highly prioritized by citizens;


### 4. stresses that , in light of the growing number of threats which transcend national boundaries such as environmental damages , pandemics or the misuse of digital technologies , the potential of cross-border npo activities should be unlocked; emphasises that cross-border activities should both mean activities or cooperation carried out in more than one member state and activities furthering the union’s objectives or contributing to the promotion and safeguarding of its values; ### deleted


### 4. stresses that , in light of the growing number of threats which transcend national boundaries such as environmental damages , pandemics or the misuse of digital technologies , the potential of cross-border npo activities should be unlocked; emphasises that cross-border activities should both mean activities or cooperation carried out in more than one member state and activities furthering the union’s objectives or contributing to the promotion and safeguarding of its values; ### 4. stresses that , in light of the growing number of threats which transcend national boundaries such as environmental damages , pandemics or the misuse of digital technologies , the potential of cross-border npo activities should be unlocked; emphasises that cross-border activities should both mean activities or cooperation carried out in more than one member state or contributing to the promotion and safeguarding of its european values;


### 5. deplores the number of legal and administrative barriers faced by npos when engaging in cross-border activities which may dissuade them from expanding their activities beyond national borders; emphasises that a union-level definition of minimum standards for npos is key for accompanying the development of the third sector across the union and create a level playing field harnessing the power of the single market; ### deleted


### 6. considers that npos cannot thrive at union level if the space in which they operate is being restricted in a number of member states; considers therefore that the setting of common minimum standards will also help to provide a minimum level of protection throughout the union and to spread best practices; ### deleted


### 6. considers that npos cannot thrive at union level if the space in which they operate is being restricted in a number of member states; considers therefore that the setting of common minimum standards will also help to provide a minimum level of protection throughout the union and to spread best practices; ### 6. considers that npos cannot thrive at union level if the space in which they operate is being restricted in a number of member states;


### 7. suggests that where relevant , the commission should complement the legislative acts called for in this report with guidelines to assist member states in their implementation; ### deleted


### 8. stresses that under no circumstances should the definition of minimum standards at union level result in a lowering of standards in any member state; calls on the commission to ensure that the proper avenues to obtain legal redress are available and that any abusive practice on behalf of member state authorities can be effectively addressed; ### deleted


### 8. stresses that under no circumstances should the definition of minimum standards at union level result in a lowering of standards in any member state; calls on the commission to ensure that the proper avenues to obtain legal redress are available and that any abusive practice on behalf of member state authorities can be effectively addressed; ### 8. stresses that under no circumstances should the definition of minimum standards at union level result in a lowering of standards in any member state;


### 9. emphasises that national bodies designated for the oversight of npos must be legally distinct and functionally independent of their respective governments. ### deleted


### 10. calls for the creation of a european associations’ authority , tasked with ensuring the implementation of the statute for european associations and monitoring the transposition of minimum rules for npos as called for in this report; suggests that it could also be the focal point for npos that report violations of the minimum standards and rights conferred upon npos by union law; ### deleted


### 10. calls for the creation of a european associations’ authority , tasked with ensuring the implementation of the statute for european associations and monitoring the transposition of minimum rules for npos as called for in this report; suggests that it could also be the focal point for npos that report violations of the minimum standards and rights conferred upon npos by union law; ### 10. calls for a thorough cost benefit analysis to be carried out ahead of any creation of a european associations’ authority , tasked with ensuring the implementation of the statute for european associations and monitoring the transposition of minimum rules for npos as called for in this report; suggests that it could also be the focal point for npos that report violations of the minimum standards and rights conferred upon npos by union law;


### 11. considers that the definition at union level of minimum standards for npos to receive public benefit status should enable mutual recognition across member states and facilitate equal treatment in terms of benefits awarded; emphasises that donors to public benefit npos who received public benefit status in another member state should enjoy the same benefits as if they were donating to a domestic organisation; ### deleted


### 12. suggests the use of carefully calibrated definitions to clarify the meaning of key concepts that otherwise risk remaining too vague and lead to uneven transposition. ### deleted


### 1. member states shall designate an independent public authority (the 'supervisory authority') to be responsible for monitoring the application of this regulation in order to protect the fundamental rights and freedoms of european associations while acting across borders. ### 1. member states shall monitor the application of this regulation in order to protect the fundamental rights and freedoms of european associations while acting across borders.


### 2. each national supervisory authority shall contribute to the consistent application of this regulation throughout the union. for that purpose , the supervisory authorities shall cooperate with each other within the framework of the european associations authority in accordance with articles 5 and 22 of this regulation. ### 2. each national supervisory authority shall contribute to the consistent application of this regulation throughout the union. for that purpose , the supervisory authorities shall cooperate with each other , with the help of the commission , in accordance with articles 5 and 22 of this regulation.


### [...] ### deleted


### 2. registration shall occur via a standardised registration procedure to be developed and set up by the european associations authority. the registration procedure shall be electronic and free of charge and shall allow applicants to use the official language or one of the official languages of the member state where the european association has its registered office. the european associations authority and national supervisory authorities shall make it possible to register by non-digital means for the citizens who wish to do so. ### 2. registration shall occur via a standardised registration procedure to be developed by the commission. the registration procedure shall be electronic and free of charge and shall allow applicants to use the official language or one of the official languages of the member state where the european association has its registered office. the national supervisory authorities shall make it possible to register by non-digital means for the citizens who wish to do so.


### 6. the registering authority shall communicate to the european associations authority without delay , and no later than 30 calendar days after the request for registration or for the granting of public benefit status has been made , an opinion concerning the application , based on the assessment conducted pursuant to paragraphs 4 and 5. if the registering authority recommends the rejection of the application , it shall provide substantiated grounds to justify its recommendation. ### 6. in the event of rejection of the application for registration and no later than 30 days after the request for registration has been made , the competent commission authority shall provide substantiated grounds to justify its recommendation for rejection.


### 8. applicants shall have the right to request the european associations authority to review its decision refusing the application within 15 calendar days after the decision has been communicated to them. ### 8. applicants shall have the right to request a review of the decision refusing the application within 15 calendar days after the decision has been communicated to them.


### 1. a european association can be granted public benefit status if the following cumulative conditions are met: ### 1. a european association can be granted public benefit status if the organisation's purpose and actual activities pursue a public benefit objective which serves the welfare of society or of part of it , and is thus beneficial for the public good , including charitable , purposes , or political activism , except where this is systematically and directly aimed to benefit the structures of a specific political party.


### the organisation's purpose and actual activities pursue a public benefit objective which serves the welfare of society or of part of it , and is thus beneficial for the public good , including charitable , purposes , or political activism , except where this is systematically and directly aimed to benefit the structures of a specific political party. the following purposes shall be considered as oriented towards public benefit , although the list shall not be considered as exclusive: ### deleted


### the organisation's purpose and actual activities pursue a public benefit objective which serves the welfare of society or of part of it and is thus beneficial for public good , including charitable purposes or political activism , except where this is systematically and directly aimed to benefit the structures of a specific political party. the following purposes shall be considered as oriented towards public benefit , although the list shall not be considered as exclusive: ### the organisation's purpose and actual activities pursue a public benefit objective which serves the welfare of society or of part of it and is thus beneficial for public good , including charitable purposes or political activism , except where this is systematically and directly aimed to benefit the structures of a specific political party.


### arts , culture or historical preservation; ### arts , culture , historical preservation and protection of rural culture;


### 1. recalls the objective of a continuous improvement of the eu’s and the member states’ education , training and skills policies in order to deliver quality education and comprehensive lifelong learning and the upgrading of skills and reskilling , notably of people with lower levels of education , and upholds the need to prepare for the future impact of artificial intelligence on the labour market and public spheres; ### 1. recalls the objective of a continuous improvement of the eu’s and the member states’ education , training and skills policies in order to deliver quality education and comprehensive lifelong learning and the upgrading of skills and reskilling , notably of people with lower levels of education , and upholds the need to prepare for the future impact on the labour market and public spheres due to continuous technological progress , including from automation and artificial intelligence;


### 2. is of the opinion that the unprecedented eu financial support for a post-covid-19 recovery should strive for sustainable economic growth that is inclusive and benefit all equally , addressing structural socio-economic disadvantages and emphasises that the european green and digital transition cannot be achieved without a gradual transformation of the education and training systems; ### 2. is of the opinion that the unprecedented eu financial support for a post-covid-19 recovery should strive for sustainable economic growth that is inclusive and benefit all , addressing structural socio-economic disadvantages between states and regions , and emphasises that the european green and digital transition cannot be effectively achieved without a gradual and comprehensive transformation of the education and training systems with a particular focus on those that are being left behind by the transition;


### 3. is concerned about the impact of the covid-19 pandemic on the area of education as severe discrepancies in digital education exists between the member states , with 32% of pupils in some member states not having had any access to education for several months , in this regard; underlines that a green and digital transition in the eu should be based on fairness in society , and should address areas such as employment , skills and education and provide support to those who have been hit hardest by the covid-19 pandemic , such as young people , women and vulnerable groups; ### 3. is concerned about the impact of the covid-19 pandemic on the area of education as severe discrepancies in digital education exists between the member states , with 32% of pupils in some member states not having had any access to education for several months , due to a variety of reasons , both structural and material; underlines that a sustainable recovery of the eu should be based on fairness in society , and should address areas such as employment , skills and education and should strive to provide support to those who have been hit hardest by the covid-19 pandemic and the green and digital transition , such as young people , women and vulnerable groups , without leaving behind those that do not belong to a specific group but have nevertheless suffered from unemployment , lack of opportunities or investment;


### 4. urges the member states to develop national recovery and resilience plans (nrrps) with at least 25 % earmarking for social investment ,and to prioritise , especially in the country-specific recommendations , targeted investments in digital infrastructure and equipment for educational establishments and learners in order to enable equal access to distance and online learning for children with disabilities , and children from disadvantaged groups and remote and rural areas; ### 4. urges the member states to develop national recovery and resilience plans (nrrps) with adequate earmarking for social investment ,and to prioritise , targeted investments in digital infrastructure and equipment for educational establishments and learners in order to enable equal access to distance and online learning for all children; stresses the need for such infrastructure to be integrated with plans for hybrid learning , in order to ensure that children are able to learn in a social environment , in contact with their teachers and peers;


### 5. calls on the recovery and resilience facility (rrf) to include a strong focus on culture with at least 2 % of the national rrf budget allocated to the ccss , as the whole sector was among the most severely affected by the global covid-19 pandemic; ### 5. calls on the recovery and resilience facility (rrf) to include a strong focus on culture with at least 5 % of the national rrf budget allocated to the ccss , as the whole sector is and in the medium-term will continue being among the hardest hit , potentially the most severely affected by the global covid-19 pandemic; reiterates the fact that artists and ccs professionals today struggle to make ends meet in the current state of economic and social activity and have resorted to extraordinarily innovative digital solutions; urges , therefore , the member states to dedicate sufficient financial support to such solutions and to ensure they become and remain economically viable in the long term;


### 6. urges the commission and the member states to use the recover resiliance facility to establish the necessary conditions in order to ensure the possibilities for digital education across the whole european union as a complementary tool for the in-person education , also with the aim of increasing the inclusiveness of education systems , with a particular focus on equal access to high-quality education and training for disadvantaged groups to compensate for the fact that socio-economic background is currently the most important determinant of children and young people’s educational outcome; ### 6. urges the commission and the member states to use the recovery and resilience facility to establish the necessary conditions in order to ensure the possibilities for digital education across the whole european union as a complementary tool for the in-person education , also with the aim of increasing the accessibility of education systems , with a particular focus on equal access to high-quality education and training;


### 7. calls on the member states to take the necessary measures to reinforce their digital infrastructure and connectivity of schools and learning centres and accelerate reforms implementing the digital transformation ensuring that all europeans can take advantage of it and with a particular effort to provide online education accessible to all , in this context reminds the necessity to adequately train the teachers and trainers , whose role in digital transformation is crucial; ### 7. calls on the member states to take the necessary measures to reinforce their digital infrastructure and connectivity of schools , community and learning centres and accelerate reforms implementing the digital transformation ensuring that all europeans can take advantage of it and with a particular effort to provide online education accessible to all , in this context reminds the necessity to adequately train the teachers and trainers , whose role in digital transformation is crucial; urges the commission to support those member states that are further behind in establishing their digital infrastructure and connectivity , by making available additional expert consultation;


### – having regard to articles 2 and 3 of the treaty on european union (teu) , ### – having regard to articles 2 , 3 and 5 of the treaty on european union (teu) ,


### d. whereas over a quarter of workers in europe experience excessive work-related stress; whereas 51% of eu workers say stress is common in their workplace and nearly 80% of managers are concerned about work-related stress8; whereas there are significant variations between the member states’ legislation on psychosocial risks; ### d. whereas over a quarter of workers in europe experience excessive work-related stress; whereas 51% of eu workers say stress is common in their workplace and nearly 80% of managers are concerned about work-related stress8; whereas there are significant variations between the member states’ legislation on psychosocial risks; whereas work-related stress can significantly increase the risk of the recurrence and worsening of musculoskeletal disorders and rheumatic diseases/chronic inflammatory conditions;


### 1. welcomes the commission’s strategic framework and in particular the introduction of the vision zero approach on work-related accidents and diseases; calls on the commission to expand the vision zero approach to other injuries or accidents as well as physical and mental attrition; calls on the commission to significantly increase the focus on prevention strategies; calls for an ambitious implementation of the 7-year long plan also in the light of the impact of the covid-19 pandemic and believes that strong legislative action is needed on several aspects of occupational health and safety eu policies to complement the variety of soft measures envisaged in order to make the vision zero a reality; calls a clear focus on workers participation in the vision zero approach; ### 1. welcomes the commission’s strategic framework and in particular the introduction of the vision zero approach on work-related accidents and diseases; calls on the commission to expand the vision zero approach to physical and mental attrition; calls on the commission to significantly increase the focus on prevention strategies; calls for an ambitious implementation of the 7-year long plan also in the light of the impact of the covid-19 pandemic and believes that strong action is needed on several aspects of occupational health and safety eu policies in order to make the vision zero a reality; calls for a clear focus on workers participation in the vision zero approach;


### 3. welcomes the commission’s commitment to present a legislative proposal to further reduce workers’ exposure to asbestos in 2022; calls on the commission to be ambitious in view of achieving the total ban of asbestos and zero accident at work vision and to update the exposure limit for asbestos to 0 ,001 fibres/cm3 (1.000 fibres/m3); stresses the need for a european framework directive for national asbestos removal strategies , including public asbestos registers; ### 3. welcomes the commission’s commitment to present a legislative proposal to further reduce workers’ exposure to asbestos in 2022; calls on the commission to be ambitious in view of achieving the total ban of asbestos and zero accident at work vision and to update the exposure limit for asbestos to 0 ,001 fibres/cm3 (1.000 fibres/m3); takes into account the need for a sufficiently long transition period to allow member states to adapt to the new exposure limit value; stresses the need for a european framework directive for national asbestos removal strategies , including public asbestos registers;


### 4. believes that the european framework directive 89/391/eec on health and safety at work has not proven effective enough for the assessment and management of psychosocial risks; recalls the parliament’s call on the commission to include the right to disconnect and to explicitly develop new psychosocial measures within the framework of occupational safety and health; calls on the commission to step up the ambition of the osh strategic framework in this regard; calls on the commission to present a directive on psychosocial risks and well-being at work aimed at efficient prevention at the workplaces of amongst others anxiety , depression , burnout and stress; calls on the commission to aim for the recognition of anxiety , depression and , burnout occupational diseases , to establish mechanisms for prevention and reintegration of affected employees into the workplace and shift from individual level interventions to work organisation approach; ### 4. believes that the european framework directive 89/391/eec on health and safety at work has not proven effective enough for the assessment and management of psychosocial risks; recalls the parliament’s call on the commission to include the right to disconnect and to explicitly develop new psychosocial measures within the framework of occupational safety and health; calls on the commission to step up the ambition of the osh strategic framework in this regard; calls on the commission to present an action plan and to develop etools and handbooks on psychosocial risks and well-being at work aimed at efficient prevention at the workplaces of amongst others anxiety , depression , burnout and stress , as well as the worsening of rheumatic diseases/chronic inflammatory conditions; calls on the commission to aim for the recognition of anxiety , depression and , burnout occupational diseases , to establish mechanisms for prevention and reintegration of affected employees into the workplace and shift from individual level interventions to work organisation approach;


### 5. welcomes that the commission strengthens the gender focus on occupational safety and health; calls on the commission to put forward a proposal for a legal act based on the framework agreement on harassment and violence at work and to ensure that the fight against workplace violence and harassment applies regardless of the reason of the harassment and that it is not limited to cases based on a discriminatory ground; calls on the member states` governments to ratify ilo convention n° 190 to put in place the necessary laws and policy measures to prevent and address violence and harassment in the world of work; ### 5. welcomes that the commission strengthens the gender focus on occupational safety and health; calls on the commission to put forward a proposal for a legal act based on the framework agreement on harassment and violence at work and to ensure that the fight against workplace violence and harassment applies regardless of the reason of the harassment and that it is not limited to cases based on a discriminatory ground;