### (47) to meet the information needs from users in a timely manner , and in particular given the urgency to meet the information needs of financial market participants subject to the requirements laid down in the delegated acts adopted pursuant to article 4 , paragraphs 6 and 7 of regulation (eu) 2019/2088 , the commission should adopt a first set of reporting standards by 31 october 2022. that set of reporting standards should specify the information that undertakings should disclose with regard to all reporting areas and sustainability matters , and that financial market participants need to comply with the disclosure obligations laid down in regulation (eu) 2019/2088. the commission should adopt a second set of reporting standards at the latest by 31 october 2023 , specifying complementary information that undertakings should disclose about sustainability matters and reporting areas where necessary , and information that is specific to the sector in which an undertaking operates. the commission should review the standards every 3 years to take account of relevant developments , including the development of international standards. ### (47) to meet the information needs from users in a timely manner , and in particular given the urgency to meet the information needs of financial market participants subject to the requirements laid down in the delegated acts adopted pursuant to article 4 , paragraphs 6 and 7 of regulation (eu) 2019/2088 , the commission should adopt a first set of reporting standards one and a half years after the entry into force of the directive. that set of reporting standards should specify the information that undertakings should disclose with regard to all reporting areas and sustainability matters , and that financial market participants need to comply with the disclosure obligations laid down in regulation (eu) 2019/2088. the commission should adopt a second set of reporting standards three years after the entry into force of the directive , specifying complementary information that undertakings should disclose about sustainability matters and reporting areas where necessary , and information that is specific to the sector in which an undertaking operates. the commission shall review the standards every 3 years to align them with relevant developments , including newly developed international standards.


### (47) to meet the information needs from users in a timely manner , and in particular given the urgency to meet the information needs of financial market participants subject to the requirements laid down in the delegated acts adopted pursuant to article 4 , paragraphs 6 and 7 of regulation (eu) 2019/2088 , the commission should adopt a first set of reporting standards by 31 october 2022. that set of reporting standards should specify the information that undertakings should disclose with regard to all reporting areas and sustainability matters , and that financial market participants need to comply with the disclosure obligations laid down in regulation (eu) 2019/2088. the commission should adopt a second set of reporting standards at the latest by 31 october 2023 , specifying complementary information that undertakings should disclose about sustainability matters and reporting areas where necessary , and information that is specific to the sector in which an undertaking operates. the commission should review the standards every 3 years to take account of relevant developments , including the development of international standards. ### (47) to meet the information needs from users in a timely manner , and in particular given the urgency to meet the information needs of financial market participants subject to the requirements laid down in the delegated acts adopted pursuant to article 4 , paragraphs 6 and 7 of regulation (eu) 2019/2088 , the commission should adopt a first set of reporting standards by 31 october 2023. that set of reporting standards should specify the information that undertakings should disclose with regard to all reporting areas and sustainability matters , and that financial market participants need to comply with the disclosure obligations laid down in regulation (eu) 2019/2088. the commission should adopt a second set of reporting standards at the latest by 31 october 2024 , specifying complementary information that undertakings should disclose about sustainability matters and reporting areas where necessary , and information that is specific to the sector in which an undertaking operates. the commission should review the standards every 5 years to take account of relevant developments. the commission should amend , when necessary , the standards to align them with the development of international standards.


### (47) to meet the information needs from users in a timely manner , and in particular given the urgency to meet the information needs of financial market participants subject to the requirements laid down in the delegated acts adopted pursuant to article 4 , paragraphs 6 and 7 of regulation (eu) 2019/2088 , the commission should adopt a first set of reporting standards by 31 october 2022. that set of reporting standards should specify the information that undertakings should disclose with regard to all reporting areas and sustainability matters , and that financial market participants need to comply with the disclosure obligations laid down in regulation (eu) 2019/2088. the commission should adopt a second set of reporting standards at the latest by 31 october 2023 , specifying complementary information that undertakings should disclose about sustainability matters and reporting areas where necessary , and information that is specific to the sector in which an undertaking operates. the commission should review the standards every 3 years to take account of relevant developments , including the development of international standards. ### (47) to meet the information needs from users in a timely manner , and in particular given the urgency to meet the information needs of financial market participants subject to the requirements laid down in the delegated acts adopted pursuant to article 4 , paragraphs 6 and 7 of regulation (eu) 2019/2088 , the commission should adopt a first set of reporting standards one and a half years after the entry into force of this directive. that set of reporting standards should specify the information that undertakings should disclose with regard to all reporting areas and sustainability matters , and that financial market participants need to comply with the disclosure obligations laid down in regulation (eu) 2019/2088. the commission should adopt a second set of reporting standards three years after the entry into force of this directive , specifying complementary information that undertakings should disclose about sustainability matters and reporting areas where necessary , and information that is specific to the sector in which an undertaking operates. the commission should review the standards every 3 years to align them with relevant developments , including newly developed international standards.


### (48) directive 2013/34/eu does not require that the financial statements or the management report are provided in a digital format , which hinders the findability and usability of the reported information. users of sustainability information increasingly expect such information to be findable and machine-readable in digital formats. digitalisation creates opportunities to exploit information more efficiently and holds the potential for significant cost savings for both users and undertakings. undertakings should therefore be required to prepare their financial statements and their management report in xhtml format in accordance with article 3 of commission delegated regulation (eu) 2019/81563 , and to mark-up sustainability information , including the disclosures required by article 8 of regulation (eu) 2020/852 , in accordance with that delegated regulation. a digital taxonomy to the union sustainability reporting standards will be necessary to allow for the information reported to be tagged in accordance with those standards. these requirements should feed into the work on digitalisation announced by the commission in its communication a european strategy for data64 and in the digital finance strategy for the eu65. these requirements also complement the creation of a european single access point for public corporate information as envisaged in the capital markets union action plan , which also considers the need for structured data. ### (48) directive 2013/34/eu does not require that the financial statements or the management report are provided in a digital format , which hinders the findability and usability of the reported information. users of sustainability information increasingly expect such information to be findable and machine-readable in digital formats and fully accessible , including to persons with disabilities. digitalisation creates opportunities to exploit information more efficiently and holds the potential for significant cost savings for both users and undertakings. undertakings should therefore be required to prepare their financial statements and their management report in xhtml format in accordance with article 3 of commission delegated regulation (eu) 2019/81563 , and to mark-up sustainability information , including the disclosures required by article 8 of regulation (eu) 2020/852 , in accordance with that delegated regulation. a digital taxonomy to the union sustainability reporting standards will be necessary to allow for the information reported to be tagged in accordance with those standards. these requirements should feed into the work on digitalisation announced by the commission in its communication a european strategy for data64 and in the digital finance strategy for the eu65. these requirements also complement the creation of a european single access point for public corporate information as envisaged in the capital markets union action plan , which also considers the need for structured data.


### (48) directive 2013/34/eu does not require that the financial statements or the management report are provided in a digital format , which hinders the findability and usability of the reported information. users of sustainability information increasingly expect such information to be findable and machine-readable in digital formats. digitalisation creates opportunities to exploit information more efficiently and holds the potential for significant cost savings for both users and undertakings. undertakings should therefore be required to prepare their financial statements and their management report in xhtml format in accordance with article 3 of commission delegated regulation (eu) 2019/815 ,63 and to mark-up sustainability information , including the disclosures required by article 8 of regulation (eu) 2020/852 , in accordance with that delegated regulation. a digital taxonomy to the union sustainability reporting standards will be necessary to allow for the information reported to be tagged in accordance with those standards. these requirements should feed into the work on digitalisation announced by the commission in its communication a european strategy for data64 and in the digital finance strategy for the eu.65 these requirements also complement the creation of a european single access point for public corporate information as envisaged in the capital markets union action plan , which also considers the need for structured data. ### (48) directive 2013/34/eu does not require that the financial statements or the management report are provided in a digital format , which hinders the findability and usability of the reported information. users of sustainability information increasingly expect such information to be findable and machine-readable in digital formats and fully accessible , in accordance with the internationally recognised standards. digitalisation creates opportunities to exploit information more efficiently and holds the potential for significant cost savings for both users and undertakings. undertakings should therefore be required to prepare their financial statements and their management report in xhtml format in accordance with article 3 of commission delegated regulation (eu) 2019/815 ,63 and to mark-up sustainability information , including the disclosures required by article 8 of regulation (eu) 2020/852 , in accordance with that delegated regulation. a digital taxonomy to the union sustainability reporting standards will be necessary to allow for the information reported to be tagged in accordance with those standards. these requirements should feed into the work on digitalisation announced by the commission in its communication a european strategy for data64 and in the digital finance strategy for the eu.65 these requirements also complement the creation of a european single access point for public corporate information as envisaged in the capital markets union action plan , which also considers the need for structured data.


### (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 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 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 commonly agreed guidelines 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. therefore , for the purpose of a priori impact assessments , a progressive approach to strengthen 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 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. when revising this directive , and only after analysing impact assessments , the commission could draw up a set of shared assurance standards to ensure reasonable sustainability reporting , according to which the statutory auditor or audit firm could issue an opinion based on a reasonable assurance engagement about the compliance of the reporting with union requirements. 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.


### (69) according to article 51 of directive 2013/34/eu , the enforcement of corporate reporting by undertakings the securities of which are not listed on regulated markets is carried out by member states. the types of sanctions are , however , not specified , which means that sanctioning regimes can vary widely between member states , so undermining the single market. to improve sustainability reporting in the internal market and to contribute to the transition towards a fully sustainable and inclusive economic and financial system in which the benefits of growth are broadly shared in accordance with the european green deal , member states should provide for certain sanctions and administrative measures in the case of infringements of sustainability reporting requirements. the sanctioning regime of directive 2013/34/eu should therefore be strengthened accordingly , whereby member states are to provide for appropriate sanctions and administrative measures. ### (69) according to article 51 of directive 2013/34/eu , the enforcement of corporate reporting by undertakings the securities of which are not listed on regulated markets is carried out by member states. the types of sanctions are , however , not specified , which means that sanctioning regimes can vary widely between member states , so undermining the single market. to improve sustainability reporting in the internal market and to contribute to the transition towards a fully sustainable and inclusive economic and financial system in which the benefits of growth are broadly shared in accordance with the european green deal , member states should provide for certain types of sanctions and administrative measures in the case of infringements of sustainability reporting requirements. the sanctioning regime of directive 2013/34/eu should therefore be strengthened accordingly , whereby member states are to provide for appropriate types of sanctions and administrative measures.


### (71) member states are invited to assess the impact of their transposition act on smes in order to ensure that they are not disproportionately affected , giving specific attention to micro-enterprises and to the administrative burden , and to publish the results of such assessments. member states should consider introducing measures to support smes in applying the voluntary simplified reporting standards. ### deleted


### (71) member states are invited to assess the impact of their transposition act on smes in order to ensure that they are not disproportionately affected , giving specific attention to micro-enterprises and to the administrative burden , and to publish the results of such assessments. member states should consider introducing measures to support smes in applying the voluntary simplified reporting standards. ### (71) the commission will assess the impact of the transposition act on smes in order to ensure that they are not disproportionately affected , giving specific attention to micro-enterprises and to the administrative burden , and to publish the results of such assessments. member states should consider introducing measures to support smes in applying the voluntary simplified reporting standards the commission shall create an online tool to facilitate reporting in small and medium-sized enterprises , in order to avoid excessive administrative burden for smes under250 employees , this should be done through a free of charge , easy to use and accessible online tool.


### (71) member states are invited to assess the impact of their transposition act on smes in order to ensure that they are not disproportionately affected , giving specific attention to micro-enterprises and to the administrative burden , and to publish the results of such assessments. member states should consider introducing measures to support smes in applying the voluntary simplified reporting standards. ### (71) the commission will assess the impact of the transposition act on smes in order to ensure that they are not disproportionately affected , giving specific attention to micro-enterprises and to the administrative burden , and to publish the results of such assessments. to support smes in applying the voluntary simplified reporting standards the commission shall create an online tool to facilitate reporting in small and medium-sized enterprises , in order to avoid excessive administrative burden for smes under 250 employees , this should be done through a free of charge , easy to use and accessible online tool.


### (71) member states are invited to assess the impact of their transposition act on smes in order to ensure that they are not disproportionately affected , giving specific attention to micro-enterprises and to the administrative burden , and to publish the results of such assessments. member states should consider introducing measures to support smes in applying the voluntary simplified reporting standards. ### (71) before any standards are introduced for large enterprises and smes , the commission needs to assess the impact of their act on large undertakings and smes in order to ensure that they are not disproportionately affected , e.g. by multiplication effects or indirect costs , giving specific attention to the administrative burden , and to publish the results of such assessments. therefore , a review clause is established.


### (71) member states are invited to assess the impact of their transposition act on smes in order to ensure that they are not disproportionately affected , giving specific attention to micro-enterprises and to the administrative burden , and to publish the results of such assessments. member states should consider introducing measures to support smes in applying the voluntary simplified reporting standards. ### (71) member states are invited to assess the impact of their transposition act on smes in order to ensure that they are not disproportionately affected , giving specific attention to micro-enterprises and to the financial and administrative burden , and to publish the results of such assessments. member states should consider introducing measures to support smes in applying the voluntary simplified reporting standards.


### (71) member states are invited to assess the impact of their transposition act on smes in order to ensure that they are not disproportionately affected , giving specific attention to micro-enterprises and to the administrative burden , and to publish the results of such assessments. member states should consider introducing measures to support smes in applying the voluntary simplified reporting standards. ### (71) before any standards are introduced for large enterprises and smes , the commission needs to assess the impact of their act on large undertakings and smes in order to ensure that they are not disproportionately affected , e.g. by multiplication effects or indirect costs , giving specific attention to the administrative burden , and to publish the results of such assessments. therefore , a review clause should be established.


### 3. the coordination measures prescribed by articles 19a , 19d , 29a , 30 and 33 , article 34(1) , second subparagraph , point (aa) , paragraphs 2 and 3 of article 34 , and article 51 of this directive shall also apply to the laws , regulations and administrative provisions of the member states relating to the following undertakings regardless of their legal form: ### 3. the coordination measures prescribed by articles 19a , 19d , 29a , 30 and 33 , article 34(1) , second subparagraph , point (aa) , paragraphs 2 and 3 of article 34 , and article 51 of this directive shall also apply to the laws , regulations and administrative provisions of the member states relating to the following undertakings regardless of their legal form , provided they are large undertakings exceeding on their balance sheet dates the criterion of the average number of 500 employees during the financial year :


### 3. the coordination measures prescribed by articles 19a , 19d , 29a , 30 and 33 , article 34(1) , second subparagraph , point (aa) , paragraphs 2 and 3 of article 34 , and article 51 of this directive shall also apply to the laws , regulations and administrative provisions of the member states relating to the following undertakings regardless of their legal form: ### 3. the coordination measures prescribed by articles 19a , 19d , 29a , 30 and 33 , article 34(1) , second subparagraph , point (aa) , paragraphs 2 and 3 of article 34 , and article 51 of this directive shall also apply to the laws , regulations and administrative provisions of the member states relating to the following undertakings regardless of their legal form , provided they are large undertakings exceeding on their balance sheet dates the criterion of the average number of 500 employees during the financial year:


### 3. the coordination measures prescribed by articles 19a , 19d , 29a , 30 and 33 , article 34(1) , second subparagraph , point (aa) , paragraphs 2 and 3 of article 34 , and article 51 of this directive shall also apply to the laws , regulations and administrative provisions of the member states relating to the following undertakings regardless of their legal form: ### 3. the coordination measures prescribed by articles 19a , 19d , 29a , 30 and 33 , article 34(1) , second subparagraph , point (aa) , paragraphs 2 and 3 of article 34 , and article 51 of this directive shall also apply to the laws , regulations and administrative provisions of the member states relating to the following undertakings regardless of their legal form , provided they are large undertakings in excess of an average number of 500 employees during the financial year on their balance sheet date , operating in the european single market as eu or third-country undertaking:


### 3. the coordination measures prescribed by articles 19a , 19d , 29a , 30 and 33 , article 34(1) , second subparagraph , point (aa) , paragraphs 2 and 3 of article 34 , and article 51 of this directive shall also apply to the laws , regulations and administrative provisions of the member states relating to the following undertakings regardless of their legal form: ### 3. the coordination measures prescribed by articles 19a , 19d , 29a , 30 and 33 , article 34(1) , second subparagraph , point (aa) , paragraphs 2 and 3 of article 34 , and article 51 of this directive shall also apply to the laws , regulations and administrative provisions of the member states relating to the following undertakings , provided that they are large undertakings with 500 employees on average , as per their balance sheets for the current financial year , and they trade on the eu internal market as an eu or third-country undertaking:


### member states may choose not to apply the coordination measures referred to in the first subparagraph to the undertakings listed in article 2(5) , points (2) to (23) , of directive 2013/36/eu of the european parliament and of the council*3. ### member states shall choose not to apply the coordination measures referred to in the first subparagraph to the undertakings listed in article 2(5) , points (2) to (23) , of directive 2013/36/eu of the european parliament and of the council*3and‘small and non-complex institutions’ as defined in article 4 (1) point (145) of regulation (eu) no 575/2013.


### 3. the coordination measures prescribed by articles 19a , 19d , 29a , 30 and 33 , article 34(1) , second subparagraph , point (aa) , paragraphs 2 and 3 of article 34 , and article 51 of this directive shall also apply to the laws , regulations and administrative provisions of the member states relating to the following undertakings regardless of their legal form: ### 3. the coordination measures prescribed by articles 19a , 19d , 29a , 30 and 33 , article 34(1) , second subparagraph , point (aa) , paragraphs 2 and 3 of article 34 , and article 51 of this directive shall also apply to the laws , regulations and administrative provisions of the member states relating to the following undertakings regardless of their legal form , provided they are large undertakings in excess of an average number of 500 employees during the financial year on their balance sheet date , operating in the european single market as union or third-country undertaking:


### member states may choose not to apply the coordination measures referred to in the first subparagraph to the undertakings listed in article 2(5) , points (2) to (23) , of directive 2013/36/eu of the european parliament and of the council*3. ### member states shall choose not to apply the coordination measures referred to in the first subparagraph to the undertakings listed in article 2(5) , points (2) to (23) , of directive 2013/36/eu of the european parliament and of the council*3and ‘small and non-complex institutions’ as defined in article 4(1)(145) of regulation (eu) no 575/2013.


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


### (17) ‘sustainability matters’ means sustainability factors as defined in article 2 , point (24) of regulation (eu) 2019/2088 of the european parliament and of the council\*4 , and governance factors; ### (17) ‘sustainability matters’ means sustainability factors as defined in article 2 , point (24) of regulation (eu) 2019/2088 of the european parliament and of the council\*4;


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


### (19) ’intangibles’ means non-physical resources that contribute to the undertaking’s value creation; ### (19) ’intangibles’ means non-physical resources that contribute to the undertaking’s value creation and are equivalent to intangible assets already reported in the financial reporting framework;


### 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 , including small and medium-sized listed undertakings as of 1 january 2026 , when subject to this directive , which are undertakings referred to in article 2 , point (1) , point (a) , as well as high-impact undertakings , 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 , 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 which are public-interest entities exceeding on their balance sheet date the criterion of the average number of 500 employees during the financial year 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.


### the due diligence process implemented with regard to sustainability matters; ### deleted


### (ii) the principal actual or potential adverse impacts connected with the undertaking’s value chain , including its own operations , its products and services , its business relationships and its supply chain; ### (ii) the actual or potential adverse impacts connected with the undertaking’s value chain , including its own operations , its products and services , its business relationships and the supply chain in high-impact sectors;


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


### 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. ### 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 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 full audited 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.


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


### (ii) the principal actual or potential adverse impacts connected with the undertaking’s value chain , including its own operations , its products and services , its business relationships and its supply chain; ### (ii) the principal actual or potential adverse impacts and the significant harm in any of the environmental categories (related to the six environmental objectives of the taxonomy regulation) , connected with the undertaking’s value chain , including its own operations , its products and services , its business relationships and its supply chain;


### a brief description of the undertaking's business model and strategy , including: ### when relevant to the reporting entity , a brief description of the undertaking's business model and strategy , including:


### (ii) the opportunities for the undertaking related to sustainability matters; ### deleted


### (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 and with the limiting of global warming to 1.5 °c in line with the paris agreement; however only where this reporting element is relevant and achievable for the reporting entities;


### (iv) how the undertaking’s business model and strategy take account of the interests of the undertaking’s stakeholders and of the impacts of the undertaking on sustainability matters; ### (iv) how the undertaking’s business model and strategy take account of the impacts of the undertaking on sustainability matters;


### 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 may allow information relating to impending developments or matters in the course of negotiation to be omitted in certain 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 and competitive 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.


### 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 , small and medium-sized undertakings which are undertakings referred to in article 2 , point (1) , point (a) , as of 1 january 2026 , and undertakings not established in the european union which are operating in the european union , and whose consolidated revenue on their balance sheet date exceeds for each of the last two consecutive financial years a total of eur 750 000 000 , as reflected in their consolidated financial statement , and whose revenue generated within the european union exceeds for each of the last two consecutive financial years eur 40 000 000 as referred to in article 3 , point (4) , point (b) , 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 , 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 which are public-interest entities exceeding on their balance sheet dates the criterion of the average number of 500 employees during the financial year shall include in the management report or in a separate sustainability 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 , not earlier than two full financial years during which the companies have had the opportunity to adapt to the provisions and reporting standards set out in this directive and the accompanying , adopted and published delegated acts , e.g. directive 2020/852.


### (2) the information referred to in paragraph 1 shall contain in particular: ### (2) the information referred to in paragraph 1 shall be limited to:


### 2. the information referred to in paragraph 1 shall contain in particular: ### 2. the information referred to in paragraph 1 shall contain:


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


### (ii) the opportunities for the undertaking related to sustainability matters; ### (ii) the opportunities for the undertaking related to sustainability matters and the transition to a carbon neutral 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; ### deleted


### (iv) how the undertaking’s business model and strategy take account of the interests of the undertaking’s stakeholders and of the impacts of the undertaking on sustainability matters; ### deleted


### how the undertaking’s strategy has been implemented with regard to sustainability matters; ### how the undertaking’s strategy has been implemented with regard to sustainability matters and climate change;


### the due diligence process implemented with regard to sustainability matters; ### deleted


### (ii) the principal actual or potential adverse impacts connected with the undertaking’s value chain , including its own operations , its products and services , its business relationships and its supply chain; ### deleted


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


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


### a description of the principal risks to the undertaking related to sustainability matters , including the undertaking’s principal dependencies on such matters , and how the undertaking manages those risks; ### deleted


### indicators relevant to the disclosures referred to in points (a) to (f). ### indicators relevant to the disclosures referred to in points (a) to (f) , which are provided by the commission by means of an delegated act in collaboration with the technical advice of the efrag and the platform on sustainable finance.


### 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.


### 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 retrospective information , and where appropriate forward looking information in a qualitative and quantitative form.


### 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. ### 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 undertaking , provided that such omission does not prevent a fair and balanced under standing of the undertaking's development , performance , position and impact of its activity. ### member states may allow information relating to impending developments or matters in the course of negotiation to be omitted in 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 prejudicial to the commercial and competitive position of the undertaking.


### 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 and after the commission has published stringent and clear guidelines after technical advice from efrag.


### (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. ### deleted


### 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. ### deleted


### (7) an undertaking which is a subsidiary undertaking shall be exempted from the obligations set out in paragraphs 1 to 4 if that undertaking and its subsidiary undertakings are included in the consolidated management report of a parent undertaking , drawn up in accordance with articles 29 and 29a. an undertaking that is a subsidiary undertaking from a parent undertaking that is established in a third country shall also be exempted from the obligations set out in paragraphs 1 to 4 where that undertaking and its subsidiary undertakings are included in the consolidated management report of that parent undertaking and where the consolidated management report is drawn up in a manner that may be considered equivalent , in accordance with the relevant implementing measures adopted pursuant to article 23(4) , point (i) , of directive 2004/109/ec of the european parliament and of the council*6 , to the manner required by the sustainability reporting standards referred to in article 19b of this directive. ### (7) an undertaking which is a subsidiary undertaking and an undertaking which belongs to an economic entity or group and has a joint market presence with this entity or group shall be exempted from the obligations set out in paragraphs 1 to 4 if that undertaking and its subsidiary undertakings are included in the consolidated management report of a parent undertaking or the economic entity or group , drawn up in accordance with articles 29 and 29a. an undertaking that is a subsidiary undertaking from a parent undertaking that is established in a third country or belongs to an economic entity or group in a third country shall also be exempted from the obligations set out in paragraphs 1 to 4 where that undertaking and its subsidiary undertakings are included in the consolidated management report of that parent undertaking or the headquarters of the economic entity or group and where the consolidated management report is drawn up in a manner that may be considered equivalent , in accordance with the relevant implementing measures adopted pursuant to article 23(4) , point (i) , of directive 2004/109/ec of the european parliament and of the council*6 , to the manner required by the sustainability reporting standards referred to in article 19b of this directive.


### 7. an undertaking which is a subsidiary undertaking shall be exempted from the obligations set out in paragraphs 1 to 4 if that undertaking and its subsidiary undertakings are included in the consolidated management report of a parent undertaking , drawn up in accordance with articles 29 and 29a. an undertaking that is a subsidiary undertaking from a parent undertaking that is established in a third country shall also be exempted from the obligations set out in paragraphs 1 to 4 where that undertaking and its subsidiary undertakings are included in the consolidated management report of that parent undertaking and where the consolidated management report is drawn up in a manner that may be considered equivalent , in accordance with the relevant implementing measures adopted pursuant to article 23(4) , point (i) , of directive 2004/109/ec of the european parliament and of the council*6 , to the manner required by the sustainability reporting standards referred to in article 19b of this directive. ### 7. an undertaking which is a subsidiary undertaking shall continue to be exempted from the obligations set out in paragraphs 1 to 4 if that undertaking and its subsidiary undertakings are included in the consolidated management report of a parent undertaking , drawn up in accordance with articles 29 and 29a. an undertaking that is a subsidiary undertaking from a parent undertaking that is established in a third country shall also be exempted from the obligations set out in paragraphs 1 to 4 where that undertaking and its subsidiary undertakings are included in the consolidated management report of that parent undertaking and where the consolidated management report is drawn up in a manner that may be considered equivalent , in accordance with the relevant implementing measures adopted pursuant to article 23(4) , point (i) , of directive 2004/109/ec of the european parliament and of the council*6 , to the manner required by the sustainability reporting standards referred to in article 19b of this directive.


### the consolidated management report of the parent undertaking referred to in subparagraph 1 shall be published in accordance with article 30 , in the manner prescribed by the law of the member state by which the undertaking that is exempted from the obligations set out in paragraphs 1 to 4 is governed. ### the consolidated management report of the parent undertaking or the economic entity or group referred to in subparagraph 1 shall be published in accordance with article 30 , in the manner prescribed by the law of the member state by which the undertaking that is exempted from the obligations set out in paragraphs 1 to 4 is governed.


### 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 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;


### 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 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.


### the name and registered office of the parent undertaking that reports information at group level in accordance with articles 29 and 29a , or in a manner that may be considered equivalent , in accordance with the implementing measures adopted pursuant to article 23(4) , point (i) of directive 2004/109/ec , to the manner required by the sustainability reporting standards referred to in article 19b; ### the name and registered office of the parent undertaking or the economic entity or group that reports information at group level in accordance with articles 29 and 29a , or in a manner that may be considered equivalent , in accordance with the implementing measures adopted pursuant to article 23(4) , point (i) of directive 2004/109/ec , to the manner required by the sustainability reporting standards referred to in article 19b;


### 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 which are public-interest entities exceeding on their balance sheet dates the criterion of the average number of 500 employees during the financial year shall include in the management report or in a separate sustainability 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 not earlier than two full financial years during which the companies have had the opportunity to adapt to the provisions and reporting standards set out in this directive and the accompanying , adopted and published delegated acts , e.g. regulation (eu) 2020/852.


### 2. the information referred to in paragraph 1 shall contain in particular: ### 2. the information referred to in paragraph 1 shall contain:


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


### (ii) the opportunities for the undertaking related to sustainability matters; ### (ii) the opportunities for the undertaking related to sustainability matters and the transition to a carbon neutral 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; ### deleted


### (iv) how the undertaking’s business model and strategy take account of the interests of the undertaking’s stakeholders and of the impacts of the undertaking on sustainability matters; ### deleted


### how the undertaking’s strategy has been implemented with regard to sustainability matters; ### how the undertaking’s strategy has been implemented with regard to sustainability matters and climate change;


### the due diligence process implemented with regard to sustainability matters; ### deleted


### (ii) the principal actual or potential adverse impacts connected with the undertaking’s value chain , including its own operations , its products and services , its business relationships and its supply chain; ### deleted


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


### a description of the principal risks to the undertaking related to sustainability matters , including the undertaking’s principal dependencies on such matters , and how the undertaking manages those risks; ### deleted


### indicators relevant to the disclosures referred to in points (a) to (f). ### indicators relevant to the disclosures referred to in points (a) to (f) which are provided by the commission by means of an delegated act in collaboration with the technical advice of the efrag and the platform on sustainable finance.


### 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.


### 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 retrospective information , and where appropriate forward looking information in a qualitative and quantitative form.


### 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. ### deleted


### member states may allow information relating to impending devel opments or matters in the course of negotiation to be omitted in excep tional 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 under standing of the undertaking's development , performance , position and impact of its activity. ### 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 and competitive position of the undertaking.


### 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 and after the commission has published stringent and clear guidelines after technical advice from efrag.


### 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. ### deleted


### 7. an undertaking which is a subsidiary undertaking shall be exempted from the obligations set out in paragraphs 1 to 4 if that undertaking and its subsidiary undertakings are included in the consolidated management report of a parent undertaking , drawn up in accordance with articles 29 and 29a. an undertaking that is a subsidiary undertaking from a parent undertaking that is established in a third country shall also be exempted from the obligations set out in paragraphs 1 to 4 where that undertaking and its subsidiary undertakings are included in the consolidated management report of that parent undertaking and where the consolidated management report is drawn up in a manner that may be considered equivalent , in accordance with the relevant implementing measures adopted pursuant to article 23(4) , point (i) , of directive 2004/109/ec of the european parliament and of the council*6 , to the manner required by the sustainability reporting standards referred to in article 19b of this directive. ### 7. an undertaking which is a subsidiary undertaking shall continue to be exempted from the obligations set out in paragraphs 1 to 4 if that undertaking and its subsidiary undertakings are included in the consolidated management report of a parent undertaking , drawn up in accordance with articles 29 and 29a. an undertaking that is a subsidiary undertaking from a parent undertaking that is established in a third country shall also be exempted from the obligations set out in paragraphs 1 to 4 where that undertaking and its subsidiary undertakings are included in the consolidated management report of that parent undertaking and where the consolidated management report is drawn up in a manner that may be considered equivalent , in accordance with the relevant implementing measures adopted pursuant to article 23(4) , point (i) , of directive 2004/109/ec of the european parliament and of the council*6 , to the manner required by the sustainability reporting standards referred to in article 19b of this directive.


### 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 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.


### 2. the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , and is represented in a faithful manner. ### 2. the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , accessible in particular for persons with disabilities relevant , representative , verifiable , comparable , and is represented in a faithful manner.


### 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 , limited to information about:


### 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 treatment and opportunities for all , including gender equality and equal pay for work , measures for just transition in the vulnerable regions and sectors , including , but not limited to measures under the just transition mechanism , training and skills development , and employment and inclusion of people with disabilities;


### (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 , including adaptation to social and climate factors and to market disturbances , caused by green transition policies , availability of just transition policies in the vulnerable regions and sectors , adequacy of wages , social dialogue , freedom of association , collective bargaining and the involvement of workers work-life balance , and a health and safety , and just transition measures adopted through social dialogue;


### (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 , and the respect of safety and health of employees and workers standards established by council directive 89/391/eec;


### (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 and the respect of safety and health of employees and workers standards established in the directive 89/391/eec


### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition; ### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters;


### 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 , by 31 october 2024 at the latest , adopt a delegated act in accordance with article 49 listing for which sectors small and medium sized-undertakings are to report according to articles 19a and 29a. the list of sectors shall list sectors according to the third level of nace rev , 2 as defined by article 2(c) of regulation (ec) no1893/2006. the delegated act shall list sectors that according to their nature or their overall impact on environmental , social or governance factors pose a particular impact unsustainability matters. when adopting that delegated act , the commission shall take into consideration if mandatory reporting would particularly benefit the access to financial capital for the concerned small and medium sized-undertakings or if the disclosure of information would have a particular benefit for other stakeholders.


### the commission shall adopt those delegated acts at the latest by 31 october 2023. ### the commission shall adopt those delegated acts at the latest by 31 october 2024.


### 2. the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , and is represented in a faithful manner. ### 2. the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , based on science based harmonised , comparable and uniform indicators and consistent with the harmonised life cycle assessment and is represented in a faithful manner.


### 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 , and employment and inclusion of people with disabilities , following the equality principles and standards established in the beijing declaration and istanbul convention.


### 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 (gender profile) and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities;


### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition; ### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition as well as the gender profile of the undertaking;


### by 31 october 2022 , the commission shall adopt delegated acts specifying the information that undertakings are to report in accordance with paragraphs 1 and 2 of article 19a , and at least specifying information corresponding to the needs of financial market participants subject to the disclosure obligations of regulation (eu) 2019/2088. ### by 31 october 2023 , the commission shall adopt delegated acts specifying the information that undertakings are to report in accordance with paragraphs 1 and 2 of article 19a , and at least specifying information corresponding to the needs of financial market participants subject to the disclosure obligations of regulation (eu) 2019/2088.


### by 31 october 2023 , the commission shall adopt delegated acts specifying: ### by 31 october 2024 , the commission shall adopt delegated acts specifying:


### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards. ### the commission shall , every five years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to ensure consistency with relevant developments , including developments with regard to international standards.


### the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , and is represented in a faithful manner. ### the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , based on science based harmonised , comparable and uniform indicators and consistent with the harmonised life cycle assessment , and is represented in a faithful manner.


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


### 3. when adopting delegated acts pursuant to paragraph 1 , the commission shall take account of: ### 3. when adopting delegated acts pursuant to paragraph 1 , the commission shall ensure consistency with 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 commission shall furthermore take account of:


### 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; ### deleted


### article 19c ### deleted


### 1. the commission shall adopt delegated acts in accordance with article 49 to provide for sustainability reporting standards. those sustainability reporting standards shall specify the information that undertakings are to report in accordance with articles 19a and 29a and , where relevant , shall specify the structure in which that information shall be reported. in particular: ### 1. the commission shall adopt delegated acts in accordance with article 49 to provide for sustainability reporting standards. those sustainability reporting standards shall specify the information that undertakings are to report in accordance with articles 19a and 29a and shall specify the structure , format and calculation in which that information shall be reported. in particular:


### (1) the commission shall adopt delegated acts in accordance with article 49 to provide for sustainability reporting standards. those sustainability reporting standards shall specify the information that undertakings are to report in accordance with articles 19a and 29a and , where relevant , shall specify the structure in which that information shall be reported. in particular: ### (1) the commission shall adopt delegated acts in accordance with article 49 to provide for clear sustainability reporting standards. those sustainability reporting standards shall lay down the information that undertakings are to report in accordance with articles 19a and 29a and shall specify the structure in which that information shall be reported:


### by 31 october 2022 , the commission shall adopt delegated acts specifying the information that undertakings are to report in accordance with paragraphs 1 and 2 of article 19a , and at least specifying information corresponding to the needs of financial market participants subject to the disclosure obligations of regulation (eu) 2019/2088. ### one and a half years after the entry into force of this directive , the commission shall adopt delegated acts specifying the information that undertakings are to report in accordance with paragraphs 1 and 2 of article 19a , being fully in line with the information matching to the reporting obligations of regulation (eu) 2019/2088 of financial market participants.


### by 31 october 2023 , the commission shall adopt delegated acts specifying: ### two years after the entry into force of this directive , the commission shall adopt delegated acts specifying:


### complementary information that undertakings shall report with regard to the sustainability matters and reporting areas listed in article 19a(2) , where necessary; ### complementary information that undertakings shall report with regard to the sustainability matters and reporting areas listed in article 19a(2) , in a precise and easy accessible form;


### (ii) information that undertakings shall report that is specific to the sector in which they operate. ### (ii) information that the commission deems undertakings necessary to report that are specific to the sector in which they operate.


### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards. ### the commission shall , at least every five years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and shall amend such delegated act to ensure consistency with relevant developments , including developments in international standards.


### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards. ### the commission shall , at least every five years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and shall amend such delegated act to take into account relevant developments , including developments with regard to international standards.


### (2) the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , and is represented in a faithful manner. ### (2) the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , easily accessible (particularly by persons with disabilities) , relevant , representative , verifiable , comparable , and is represented in a faithful manner.


### specify the information that undertakings are to disclose about environmental factors , including information about: ### specify the information that undertakings are to disclose about environmental factors , mirroring the definitions and requirements set out in regulation (eu) 2020/852 and the associated delegated acts.


### specify the information that undertakings are to disclose about environmental factors , including information about: ### specify the information that undertakings are to disclose about environmental factors , which reflect the definitions and requirements in regulation (eu) 2020/852 and associated delegated acts.


### climate change mitigation; ### deleted


### (ii) climate change adaptation; ### deleted


### (iii) water and marine resources; ### deleted


### (iv) resource use and circular economy; ### deleted


### pollution; ### deleted


### (vi) biodiversity and ecosystems; ### 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 , limited to information about:


### 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; ### gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities;


### (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 , wages , social dialogue , and collective bargaining in line with employees and workers standards established in the directive 89/391/eec ;


### (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 standards established in the international bill of human rights and other core un human rights conventions , such as the convention on the rights of persons with disabilities , 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.


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


### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition; ### deleted


### (ii) business ethics and corporate culture , including anti-corruption and anti-bribery; ### (ii) business ethics , anti-corruption and anti-bribery;


### (iii) political engagements of the undertaking , including its lobbying activities; ### (iii) direct political influence of the undertaking , including its lobbying activities;


### (iv) the management and quality of relationships with business partners , including payment practices; ### deleted


### (iv) the management and quality of relationships with business partners , including payment practices; ### (iv) business partners management , especially payment practices towards smes;


### 3. when adopting delegated acts pursuant to paragraph 1 , the commission shall take account of: ### 3. when adopting delegated acts pursuant to paragraph 1 , the commission shall ensure consistency with its own work and the work of global standard-setting initiatives for sustainability reporting , existing standards and frameworks for natural capital accounting , responsible business conduct , corporate social responsibility , sustainable corporate governance and other sustainable development: the commission shall furthermore take account of:


### 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; ### deleted


### the information that financial market participants need to comply with their disclosure obligations laid down in regulation (eu) 2019/2088 and the delegated acts adopted pursuant to that regulation; ### the information that financial market participants need to comply with their disclosure obligations laid down in regulation (eu) 2019/2088 and the delegated acts adopted pursuant to that regulation , matching the reporting capabilities of the reporting entities;


### the criteria set out in the delegated acts adopted pursuant to regulation (eu) 2020/852*7; ### the criteria set out in the delegated acts adopted pursuant to regulation (eu) 2020/852*7whose feasibility in practice and by means of concrete templates and examples are ensured by the commission;


### the criteria set out in the delegated acts adopted pursuant to regulation (eu) 2020/852*7; ### the criteria , indicators and methodologies set out in the delegated acts adopted pursuant to regulation (eu) 2020/852*7;


### article 19c ### deleted


### sustainability reporting standards for smes ### deleted


### 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. ### deleted


### the commission shall adopt those delegated acts at the latest by 31 october 2023. ### deleted


### 1. undertakings subject to article 19a shall prepare their financial statements and their management report in a single electronic reporting format in accordance with article 3 of commission delegated regulation (eu) 2019/815*15 and shall mark-up their sustainability reporting , including the disclosures laid down in article 8 of regulation (eu) 2020/852 , in accordance with that delegated regulation. ### 1. undertakings subject to article 19a shall prepare their financial statements and their management report in a single electronic reporting format in accordance with article 3 of commission delegated regulation (eu) 2019/815*15 and shall mark-up their sustainability reporting , including the disclosures laid down in article 8 of regulation (eu) 2020/852 , in accordance with that delegated regulation as well as other references made to other regulations in article 19b.


### (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 standards established in the international bill of human rights and other core un human rights conventions , such as the un convention on the rights of persons with disabilities , 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 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 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 be in line with the principle of proportionality. 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.


### 1. the commission shall adopt delegated acts in accordance with article 49 to provide for sustainability reporting standards. those sustainability reporting standards shall specify the information that undertakings are to report in accordance with articles 19a and 29a and , where relevant , shall specify the structure in which that information shall be reported. in particular: ### 1. the commission shall adopt delegated acts in accordance with article 49 to provide for sustainability reporting standards. those sustainability reporting standards shall specify the information that undertakings are to report in accordance with articles 19a and 29a and shall specify the structure , format and calculation in which that information shall be reported. in particular:


### by 31 october 2022 , the commission shall adopt delegated acts specifying the information that undertakings are to report in accordance with paragraphs 1 and 2 of article 19a , and at least specifying information corresponding to the needs of financial market participants subject to the disclosure obligations of regulation (eu) 2019/2088. ### one and a half years after the entry into force of this directive , the commission shall adopt delegated acts specifying the information that undertakings are to report in accordance with paragraphs 1 and 2 of article 19a , being fully in line with the information matching to the reporting obligations of regulation (eu) 2019/2088 of financial market participants.


### by 31 october 2023 , the commission shall adopt delegated acts specifying: ### two years after the entry into force of this directive , the commission shall adopt delegated acts specifying:


### complementary information that undertakings shall report with regard to the sustainability matters and reporting areas listed in article 19a(2) , where necessary; ### complementary information that undertakings shall report with regard to the sustainability matters and reporting areas listed in article 19a(2) , in a precise and accessible form;


### (ii) information that undertakings shall report that is specific to the sector in which they operate. ### (ii) information that the commission deems undertakings necessary to report that are specific to the sector in which they operate.


### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards. ### the commission shall , at least every five years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and shall amend such delegated act to take into account relevant developments , including developments with regard to international standards.


### specify the information that undertakings are to disclose about environmental factors , including information about: ### specify the information that undertakings are to disclose about environmental factors , mirroring the definitions and requirements set out in regulation (eu) 2020/852 and the associated delegated acts.


### climate change mitigation; ### deleted


### (ii) climate change adaptation; ### deleted


### (iii) water and marine resources; ### deleted


### (iv) resource use and circular economy; ### deleted


### pollution; ### deleted


### (vi) biodiversity and ecosystems; ### 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 , limited to information about:


### 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; ### gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities;


### (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 , wages , social dialogue and collective bargaining in line with employees and workers standards established in the directive 89/391/eec;


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


### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition; ### deleted


### (ii) business ethics and corporate culture , including anti-corruption and anti-bribery; ### (ii) business ethics , anti-corruption and anti-bribery;


### (iii) political engagements of the undertaking , including its lobbying activities; ### (iii) direct political influence of the undertaking , including its lobbying activities;


### (iv) the management and quality of relationships with business partners , including payment practices; ### (iv) business partners management , especially payment practices towards smes;


### 3. when adopting delegated acts pursuant to paragraph 1 , the commission shall take account of: ### 3. when adopting delegated acts pursuant to paragraph 1 , the commission shall ensure consistency with its own work and the work of global standard-setting initiatives for sustainability reporting , existing standards and frameworks for natural capital accounting , responsible business conduct , corporate social responsibility , sustainable corporate governance and other sustainable development. the commission shall furthermore take account of:


### 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; ### deleted


### the information that financial market participants need to comply with their disclosure obligations laid down in regulation (eu) 2019/2088 and the delegated acts adopted pursuant to that regulation; ### the information that financial market participants need to comply with their disclosure obligations laid down in regulation (eu) 2019/2088 and the delegated acts adopted pursuant to that regulation , matching the reporting capabilities of the reporting entities;


### the criteria set out in the delegated acts adopted pursuant to regulation (eu) 2020/852*7; ### the criteria set out in the delegated acts adopted pursuant to regulation (eu) 2020/852*7whose feasibility in practice and by means of concrete templates and examples are ensured by the commission;


### article 19c ### deleted


### sustainability reporting standards for smes ### deleted


### 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. ### deleted