### 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.


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


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


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


### (iii) the plans of the group to ensure that the group’s business model and strategy compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement; ### (iii) the transitional plans of the group to ensure that the group’s 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 group’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 group’s value chain , including its own operations , its products and services , its business relationships and its supply chain;


### 1. parent undertakings of a large group shall include in the consolidated management report information necessary to understand the group's impacts on sustainability matters , and information necessary to understand how sustainability matters affect the group's development , performance and position. ### 1. public-interest entities which are parent undertakings of a large group exceeding on its balance sheet data , on a consolidated basis , the criterion of the average number of 500 employees during the financial year shall include in the consolidated management report information necessary to understand the group's impacts on sustainability matters , and information necessary to understand how sustainability matters affect the group's development , performance and position.


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


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


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


### 5. by way of derogation from article 29a , paragraphs 1-4 , parent undertakings that are 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. parent undertakings of a large group shall include in the consolidated management report information necessary to understand the group's impacts on sustainability matters , and information necessary to understand how sustainability matters affect the group's development , performance and position. ### 1. public-interest entities which are parent undertakings of a large group exceeding on its balance sheet dates , on a consolidated basis , the criterion of the average number of 500 employees during the financial year shall include in the consolidated management report information necessary to understand the group's impacts on sustainability matters , and information necessary to understand how sustainability matters affect the group's development , performance and position.


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


### (ii) the opportunities for the group related to sustainability matters; ### (ii) the opportunities for the group related to sustainability matters and the transition to a carbon-neutral economy;


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


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


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


### a description of: ### deleted


### (ii) the principal actual or potential adverse impacts connected with the group’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 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 group related to sustainability matters , including the group’s principal dependencies on such factors , and how the group manages those risks; ### deleted


### indicators relevant to the relevant to the disclosures referred to in points (a) to (f). ### indicators relevant to the 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.


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


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


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


### the information referred to in paragraphs 1 and 2 shall also , where appropriate , include references to , and additional explanations of , other information included in the consolidated management report in accordance with article 29 of this directive and amounts reported in the consolidated financial statements. ### the information referred to in paragraphs 1 and 2 shall also , where possible , include references to , and additional explanations of , other information included in the consolidated management report in accordance with article 29 of this directive and amounts reported in the consolidated financial statements.


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


### (5) by way of derogation from article 29a , paragraphs 1-4 , parent undertakings that are 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 29a , paragraphs 1-4 , parent undertakings that are 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


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


### 1. parent undertakings of a large group shall include in the consolidated management report information necessary to understand the group's impacts on sustainability matters , and information necessary to understand how sustainability matters affect the group's development , performance and position. ### 1. public-interest entities which are parent undertakings of a large group exceeding on its balance sheet dates , on a consolidated basis , the criterion of the average number of 500 employees during the financial year shall include in the consolidated management report information necessary to understand the group's impacts on sustainability matters , and information necessary to understand how sustainability matters affect the group's development , performance and position.


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


### (ii) the opportunities for the group related to sustainability matters; ### (ii) the opportunities for the group related to sustainability matters and the transition to a carbon-neutral economy;


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


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


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


### a description of: ### deleted


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


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


### 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 group , provided that such omission does not prevent a fair and balanced under standing of the group'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 group.


### when adopting delegated acts pursuant to articles 19b and 19c , the commission shall take into consideration technical advice from efrag , provided such advice has been developed with proper due process , public oversight and transparency and with the expertise of relevant stakeholders , and is accompanied by cost-benefit analyses that include analyses of the impacts of the technical advice on sustainability matters. ### when adopting delegated acts pursuant to articles 19b , the commission shall ensure consistency with the development of international standards and take into consideration technical advice from efrag , provided such advice has been developed with proper due process , public oversight and transparency and with the expertise of relevant stakeholders , and is accompanied by cost-benefit analyses that include analyses of the impacts of the technical advice on sustainability matters.


### the commission shall consult the member state expert group on sustainable finance referred to in article 24 of regulation (eu) 2020/852 on the technical advice provided by efrag prior to the adoption of the delegated acts referred to in articles 19b and 19c. ### the commission shall consult the member state expert group on sustainable finance referred to in article 24 of regulation (eu) 2020/852 on the technical advice provided by efrag prior to the adoption of the delegated acts referred to in articles 19b.


### the commission shall also consult the european banking authority , the european insurance and occupational pensions authority , the european environment agency , the european union agency for fundamental rights , the european central bank , the committee of european auditing oversight bodies and the platform on sustainable finance established pursuant to article 20 of regulation (eu) 2020/852 on the technical advice provided by efrag prior to the adoption of delegated acts referred to in articles 19b and 19c. where any of those bodies decide to submit an opinion , they shall do so within two months from the date of being consulted by the commission.; ### the commission shall also consult the european banking authority , the european insurance and occupational pensions authority , the european environment agency , the european union agency for fundamental rights , the european central bank , the committee of european auditing oversight bodies and the platform on sustainable finance established pursuant to article 20 of regulation (eu) 2020/852 on the technical advice provided by efrag prior to the adoption of delegated acts referred to in articles 19b. where any of those bodies decide to submit an opinion , they shall do so within two months from the date of being consulted by the commission.;


### 3a. when adopting delegated acts pursuant to articles 19b and 19c , the commission shall take into consideration technical advice from efrag , provided such advice has been developed with proper due process , public oversight and transparency and with the expertise of relevant stakeholders , and is accompanied by cost-benefit analyses that include analyses of the impacts of the technical advice on sustainability matters. ### 3a. when adopting delegated acts pursuant to articles 19b , the commission shall ensure consistency with the development of international standards and take into consideration technical advice from efrag , provided such advice has been developed with proper due process , public oversight and transparency and with the expertise of relevant stakeholders , and is accompanied by cost-benefit analyses that include analyses of the impacts of the technical advice on sustainability matters.


### the commission shall request the opinion of the european securities and markets authority on the technical advice provided by efrag , in particular with regard to its consistency with regulation (eu) 2019/2088 and its delegated acts. the european securities and markets authority shall provide its opinion within two months from the date of receipt of the request from the commission. ### the commission shall request the opinion of the european securities and markets authority on the technical advice provided by efrag , in particular with regard to its consistency with regulation (eu) 2019/2088 and its delegated acts , regulation (eu) 2020/852 and other legislative acts referred to in article 19a and 19b of this directive. the european securities and markets authority shall provide its opinion within three months from the date of receipt of the request from the commission.


### the commission shall also consult the european banking authority , the european insurance and occupational pensions authority , the european environment agency , the european union agency for fundamental rights , the european central bank , the committee of european auditing oversight bodies and the platform on sustainable finance established pursuant to article 20 of regulation (eu) 2020/852 on the technical advice provided by efrag prior to the adoption of delegated acts referred to in articles 19b and 19c. where any of those bodies decide to submit an opinion , they shall do so within two months from the date of being consulted by the commission.; ### the commission shall also consult the european banking authority , the european insurance and occupational pensions authority , the european environment agency , the european union agency for fundamental rights , the european central bank , the committee of european auditing oversight bodies and the platform on sustainable finance established pursuant to article 20 of regulation (eu) 2020/852 on the technical advice provided by efrag prior to the adoption of delegated acts referred to in articles 19b. where any of those bodies decide to submit an opinion , they shall do so within three months from the date of being consulted by the commission.;


### 3a. when adopting delegated acts pursuant to articles 19b and 19c , the commission shall take into consideration technical advice from efrag , provided such advice has been developed with proper due process , public oversight and transparency and with the expertise of relevant stakeholders , and is accompanied by cost-benefit analyses that include analyses of the impacts of the technical advice on sustainability matters. ### 3a. when adopting delegated acts pursuant to article 19b , the commission shall ensure consistency with the development of international standards and take into consideration technical advice from efrag , provided such advice has been developed with proper due process , public oversight and transparency and with the expertise of relevant stakeholders , and is accompanied by cost-benefit analyses that include analyses of the impacts of the technical advice on sustainability matters.


### the commission shall consult the member state expert group on sustainable finance referred to in article 24 of regulation (eu) 2020/852 on the technical advice provided by efrag prior to the adoption of the delegated acts referred to in articles 19b and 19c. ### the commission shall consult the member state expert group on sustainable finance referred to in article 24 of regulation (eu) 2020/852 on the technical advice provided by efrag prior to the adoption of the delegated acts referred to in article 19b.


### the commission shall request the opinion of the european securities and markets authority on the technical advice provided by efrag , in particular with regard to its consistency with regulation (eu) 2019/2088 and its delegated acts. the european securities and markets authority shall provide its opinion within two months from the date of receipt of the request from the commission. ### the commission shall request the opinion of the european securities and markets authority on the technical advice provided by efrag , in particular with regard to its consistency with regulation (eu) 2019/2088 and its delegated acts , regulation (eu)2020/852 and other legislative acts referred to in article 19a and 19b of this directive. the european securities and markets authority shall provide its opinion within three months from the date of receipt of the request from the commission.


### the commission shall also consult the european banking authority , the european insurance and occupational pensions authority , the european environment agency , the european union agency for fundamental rights , the european central bank , the committee of european auditing oversight bodies and the platform on sustainable finance established pursuant to article 20 of regulation (eu) 2020/852 on the technical advice provided by efrag prior to the adoption of delegated acts referred to in articles 19b and 19c. where any of those bodies decide to submit an opinion , they shall do so within two months from the date of being consulted by the commission.; ### the commission shall also consult the european banking authority , the european insurance and occupational pensions authority , the european environment agency , the european union agency for fundamental rights , the european central bank , the committee of european auditing oversight bodies and the platform on sustainable finance established pursuant to article 20 of regulation (eu) 2020/852 on the technical advice provided by efrag prior to the adoption of delegated acts referred to in article 19b. where any of those bodies decide to submit an opinion , they shall do so within three months from the date of being consulted by the commission.;


### a public statement indicating the natural person or the legal entity responsible and the nature of the infringement; ### deleted


### a public statement indicating the natural person or the legal entity responsible and the nature of the infringement; ### a public statement indicating the legal entity responsible and the nature of the infringement;


### an order requiring the natural person or the legal entity responsible to cease the conduct constituting the infringement and to desist from any repetition of that conduct; ### an order requiring the legal entity responsible to cease the conduct constituting the infringement and to desist from any repetition of that conduct;


### (3) member states shall ensure that , when determining the type and level of penalties , administrative sanctions or measures referred to in paragraph 2 , all relevant circumstances are taken into account , including: ### (3) member states shall ensure that , when determining the type and level of penalties , administrative sanctions or measures referred to in paragraph 2 , all relevant circumstances are taken into account:


### the degree of responsibility of the natural person or legal entity responsible; ### the degree of responsibility of the legal entity responsible;


### the financial strength of the natural person or legal entity responsible; ### the financial strength of the legal entity responsible;


### the importance of profits gained or losses avoided by the natural person or legal entity responsible , in so far as such profits or losses can be determined; ### the importance of profits gained or losses avoided by the legal entity responsible , in so far as such profits or losses can be determined;


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


### previous infringements by the natural person or legal entity responsible.’. ### previous infringements by the legal entity responsible.’.


### after consulting the european environment agency and the european union agency for fundamental rights , esma shall issue guidelines in accordance with article 16 of regulation 1095/2010 on the supervision of sustainability reporting by national competent authorities. ### the european securities and markets authority (esma) shall issue guidelines in accordance with article 16 of regulation 1095/2010 on the supervision of sustainability reporting by national competent authorities.


### (3) where the commission adopts standards for reasonable assurance , the opinion referred to in article 34(1) , second subparagraph , point (aa) of directive 2013/34/eu shall be based on a reasonable assurance engagement.’; ### (3) where the commission adopts standards for reasonable assurance , only after revising this directive and drawing up specific impact assessments , the opinion referred to in article 34(1) , second subparagraph , point (aa) of directive 2013/34/eu shall be based on a reasonable assurance engagement.’;


### (32) undertakings under the scope of articles 19a(1) and 29a(1) of directive 2013/34/eu may rely on national , union-based or international reporting frameworks , and where they do so , they have to specify which frameworks they relied upon. however , directive 2013/34/eu does not require undertakings to use a common reporting framework or standard , and it does not prevent undertakings from choosing not to use any reporting framework or standards at all. as required by article 2 of directive 2014/95/eu , the commission published in 2017 non-binding guidelines for undertakings under the scope of that directive52 . in 2019 , the commission published additional guidelines , specifically on reporting climate-related information53 . the climate reporting guidelines explicitly incorporated the recommendations of the task force on climate-related financial disclosures. available evidence indicates that those non-binding guidelines did not have a significant impact on the quality of non-financial reporting by undertakings under the scope of articles 19a and 29a of directive 2013/34/eu. the voluntary nature of the guidelines means that undertakings are free to apply them or not. the guidelines can therefore not ensure on their own the comparability of information disclosed by different undertakings or the disclosure of all information that users consider relevant. that is why there is a need for mandatory common reporting standards to ensure that information is comparable and that all relevant information is disclosed. building on the double-materiality principle , standards should cover all information that is material to users. common reporting standards are also necessary to enable the audit and digitalisation of sustainability reporting and to facilitate its supervision and enforcement. the development of mandatory common sustainability reporting standards is necessary to progress to a situation in which sustainability information has a status comparable to that of financial information. ### (32) undertakings under the scope of articles 19a(1) and 29a(1) of directive 2013/34/eu may rely on national , union-based or international reporting frameworks , and where they do so , they have to specify which frameworks they relied upon. however , directive 2013/34/eu does not require undertakings to use a common reporting framework or standard , and it does not prevent undertakings from choosing not to use any reporting framework or standards at all. as required by article 2 of directive 2014/95/eu , the commission published in 2017 non-binding guidelines for undertakings under the scope of that directive52 . in 2019 , the commission published additional guidelines , specifically on reporting climate-related information53 . the climate reporting guidelines explicitly incorporated the recommendations of the task force on climate-related financial disclosures. available evidence indicates that those non-binding guidelines did not have a significant impact on the quality of non-financial reporting by undertakings under the scope of articles 19a and 29a of directive 2013/34/eu , as only 32% of the reportable companies used these standards. . the voluntary nature of the guidelines means that undertakings are free to apply them or not. the guidelines can therefore not ensure on their own the comparability of information disclosed by different undertakings or the disclosure of all information that users consider relevant. that is why there is a need for mandatory common reporting standards for the undertakings originally targeted under the scope of articles 19a and 29a of directive 2013/34/eu (large undertakings which are public entities with an average number of employees in excess of 500) to ensure that information is comparable and that all relevant information is disclosed. building on the double-materiality principle , standards should cover all information that is material to users. common reporting standards are also necessary to enable the audit and digitalisation of sustainability reporting and to facilitate its supervision and enforcement. the development of mandatory common sustainability reporting standards is necessary to progress to a situation in which sustainability information has a status comparable to that of financial information.


### (32) undertakings under the scope of articles 19a(1) and 29a(1) of directive 2013/34/eu may rely on national , union-based or international reporting frameworks , and where they do so , they have to specify which frameworks they relied upon. however , directive 2013/34/eu does not require undertakings to use a common reporting framework or standard , and it does not prevent undertakings from choosing not to use any reporting framework or standards at all. as required by article 2 of directive 2014/95/eu , the commission published in 2017 non-binding guidelines for undertakings under the scope of that directive52 . in 2019 , the commission published additional guidelines , specifically on reporting climate-related information53 . the climate reporting guidelines explicitly incorporated the recommendations of the task force on climate-related financial disclosures. available evidence indicates that those non-binding guidelines did not have a significant impact on the quality of non-financial reporting by undertakings under the scope of articles 19a and 29a of directive 2013/34/eu. the voluntary nature of the guidelines means that undertakings are free to apply them or not. the guidelines can therefore not ensure on their own the comparability of information disclosed by different undertakings or the disclosure of all information that users consider relevant. that is why there is a need for mandatory common reporting standards to ensure that information is comparable and that all relevant information is disclosed. building on the double-materiality principle , standards should cover all information that is material to users. common reporting standards are also necessary to enable the audit and digitalisation of sustainability reporting and to facilitate its supervision and enforcement. the development of mandatory common sustainability reporting standards is necessary to progress to a situation in which sustainability information has a status comparable to that of financial information. ### (32) undertakings under the scope of articles 19a(1) and 29a(1) of directive 2013/34/eu may rely on national , union-based or international reporting frameworks , and where they do so , they have to specify which frameworks they relied upon. however , directive 2013/34/eu does not require undertakings to use a common reporting framework or standard , and it does not prevent undertakings from choosing not to use any reporting framework or standards at all. as required by article 2 of directive 2014/95/eu , the commission published in 2017 non-binding guidelines for undertakings under the scope of that directive52 . in 2019 , the commission published additional guidelines , specifically on reporting climate-related information53 . the climate reporting guidelines explicitly incorporated the recommendations of the task force on climate-related financial disclosures. available evidence indicates that those non-binding guidelines did not have a significant impact on the quality of non-financial reporting by undertakings under the scope of articles 19a and 29a of directive 2013/34/eu , as only 32% of the reportable companies used these standards. the voluntary nature of the guidelines means that undertakings are free to apply them or not. the guidelines can therefore not ensure on their own the comparability of information disclosed by different undertakings or the disclosure of all information that users consider relevant. that is why there is a need for mandatory common reporting standards for the undertakings originally targeted under the scope of articles 19a and 29a of directive 2013/34/eu (large undertakings which are public entities with an average number of employees in excess of 500) to ensure that information is comparable and that all relevant information is disclosed. building on the double-materiality principle , standards should cover all information that is material to users. common reporting standards are also necessary to enable the audit and digitalisation of sustainability reporting and to facilitate its supervision and enforcement. the development of mandatory common sustainability reporting standards is necessary to progress to a situation in which sustainability information has a status comparable to that of financial information.


### (35) sustainability reporting standards should be coherent with other union legislation. those standards should in particular be aligned with the disclosure requirements laid down in regulation (eu) 2019/2088 , and they should take account of underlying indicators and methodologies set out in the various delegated acts adopted pursuant to regulation (eu) 2020/852 , disclosure requirements applicable to benchmark administrators pursuant to regulation (eu) 2016/1011 of the european parliament and of the council55 , the minimum standards for the construction of eu climate transition benchmarks and eu paris-aligned benchmarks; and of any work carried out by the european banking authority in the implementation of the pillar iii disclosure requirements of regulation (eu) no 575/2013. standards should take account of union environmental legislation , including directive 2003/87/ec of the european parliament and of the council56 and regulation (ec) no 1221/2009 of the european parliament and of the council57 , and should take account of commission recommendation 2013/179/eu58 and its annexes , and their updates. other relevant union legislation , including directive 2010/75/eu of the european parliament and of the council59 , and requirements laid down in union law for undertakings as regards directors’ duties and due diligence , should also be taken into account. ### (35) sustainability reporting standards should be coherent with other union legislation , which address the subjects touched upon in this directive. those standards should in particular be aligned with the disclosure requirements laid down in regulation (eu) 2019/2088 , and they should take account of underlying indicators and methodologies set out in the various delegated acts adopted pursuant to regulation (eu) 2020/852 , disclosure requirements applicable to benchmark administrators pursuant to regulation (eu) 2016/1011 of the european parliament and of the council55 , the minimum standards for the construction of eu climate transition benchmarks and eu paris-aligned benchmarks; and of any work carried out by the european banking authority in the implementation of the pillar iii disclosure requirements of regulation (eu) no 575/2013. standards should take account of union environmental legislation , including directive 2003/87/ec of the european parliament and of the council56 and regulation (ec) no 1221/2009 of the european parliament and of the council57 , and should take account of commission recommendation 2013/179/eu58 and its annexes , and their updates. other relevant union legislation , including directive 2010/75/eu of the european parliament and of the council59 , and requirements laid down in union law for undertakings as regards directors’ duties and due diligence , should also be taken into account. underlines that international sustainability standards exist and are currently being developed and improved. as far as international standards are sufficient , european standards should be aligned to minimize administrative burdens and strengthen seamless free-trade in and outside fta’s. this should include alignment with international reporting standards on social issues , such as gender and diversity profile of the company.


### (35) sustainability reporting standards should be coherent with other union legislation. those standards should in particular be aligned with the disclosure requirements laid down in regulation (eu) 2019/2088 , and they should take account of underlying indicators and methodologies set out in the various delegated acts adopted pursuant to regulation (eu) 2020/852 , disclosure requirements applicable to benchmark administrators pursuant to regulation (eu) 2016/1011 of the european parliament and of the council55 , the minimum standards for the construction of eu climate transition benchmarks and eu paris-aligned benchmarks; and of any work carried out by the european banking authority in the implementation of the pillar iii disclosure requirements of regulation (eu) no 575/2013. standards should take account of union environmental legislation , including directive 2003/87/ec of the european parliament and of the council56 and regulation (ec) no 1221/2009 of the european parliament and of the council57 , and should take account of commission recommendation 2013/179/eu58 and its annexes , and their updates. other relevant union legislation , including directive 2010/75/eu of the european parliament and of the council59 , and requirements laid down in union law for undertakings as regards directors’ duties and due diligence , should also be taken into account. ### (35) sustainability reporting standards need to be coherent with all other union legislation , which address the subjects touched upon in this directive. those standards should in particular be aligned with the disclosure requirements laid down in regulation (eu) 2019/2088 , and they should be fully in line with underlying criteria , indicators and methodologies set out in the various delegated acts adopted pursuant to regulation (eu) 2020/852 , disclosure requirements applicable to benchmark administrators pursuant to regulation (eu) 2016/1011 of the european parliament and of the council55 , the minimum standards for the construction of eu climate transition benchmarks and eu paris-aligned benchmarks; and of any work carried out by the european banking authority in the implementation of the pillar iii disclosure requirements of regulation (eu) no 575/2013. standards should take account of union environmental legislation , including directive 2003/87/ec of the european parliament and of the council56 and regulation (ec) no 1221/2009 of the european parliament and of the council57 , and should take account of commission recommendation 2013/179/eu58 and its annexes , and their updates. other relevant union legislation , including directive 2010/75/eu of the european parliament and of the council59 should also be taken into account.


### (35) sustainability reporting standards should be coherent with other union legislation. those standards should in particular be aligned with the disclosure requirements laid down in regulation (eu) 2019/2088 , and they should take account of underlying indicators and methodologies set out in the various delegated acts adopted pursuant to regulation (eu) 2020/852 , disclosure requirements applicable to benchmark administrators pursuant to regulation (eu) 2016/1011 of the european parliament and of the council55 , the minimum standards for the construction of eu climate transition benchmarks and eu paris-aligned benchmarks; and of any work carried out by the european banking authority in the implementation of the pillar iii disclosure requirements of regulation (eu) no 575/2013. standards should take account of union environmental legislation , including directive 2003/87/ec of the european parliament and of the council56 and regulation (ec) no 1221/2009 of the european parliament and of the council57 , and should take account of commission recommendation 2013/179/eu58 and its annexes , and their updates. other relevant union legislation , including directive 2010/75/eu of the european parliament and of the council59 , and requirements laid down in union law for undertakings as regards directors’ duties and due diligence , should also be taken into account. ### (35) sustainability reporting standards need to be coherent with all other union legislation , which address the subjects touched upon in this directive. those standards should in particular be aligned with the disclosure requirements laid down in regulation (eu) 2019/2088 , and they should be fully in line with underlying criteria and methodologies set out in the various delegated acts adopted pursuant to regulation (eu) 2020/852 , disclosure requirements applicable to benchmark administrators pursuant to regulation (eu) 2016/1011 of the european parliament and of the council55 , the minimum standards for the construction of eu climate transition benchmarks and eu paris-aligned benchmarks; and of any work carried out by the european banking authority in the implementation of the pillar iii disclosure requirements of regulation (eu) no 575/2013. standards should take account of union environmental legislation , including directive 2003/87/ec of the european parliament and of the council56 and regulation (ec) no 1221/2009 of the european parliament and of the council57 , and should take account of commission recommendation 2013/179/eu58 and its annexes , and their updates. other relevant union legislation , including directive 2010/75/eu of the european parliament and of the council59 , should also be taken into account.


### (49) to allow for the inclusion of the reported sustainability information in the european single access point , member states should ensure that undertakings publish the duly approved annual financial statements and the management report in the prescribed electronic format , and ensure that management reports containing sustainability reporting are made available , without delay following their publication , to the relevant officially appointed mechanism referred to in article 21(2) of directive 2004/109/ec. ### (49) to allow for and ensure the inclusion of the reported sustainability information in the european single access point , member states should ensure that undertakings publish the duly approved annual financial statements and the management report in the prescribed electronic format , and ensure that management reports containing sustainability reporting are made available , without delay following their publication , to the relevant officially appointed mechanism referred to in article 21(2) of directive 2004/109/ec.


### (49) to allow for the inclusion of the reported sustainability information in the european single access point , member states should ensure that undertakings publish the duly approved annual financial statements and the management report in the prescribed electronic format , and ensure that management reports containing sustainability reporting are made available , without delay following their publication , to the relevant officially appointed mechanism referred to in article 21(2) of directive 2004/109/ec. ### (49) to allow for the inclusion of the reported sustainability information in the european single access point , member states should ensure that undertakings publish the duly approved annual financial statements and the management report in the prescribed electronic format , and ensure that management reports containing sustainability reporting are made available , following their publication , to the relevant officially appointed mechanism referred to in article 21(2) of directive 2004/109/ec.


### (2) in its action plan: financing sustainable growth the commission set out measures to achieve the following objectives: reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth , manage financial risks stemming from climate change , resource depletion , environmental degradation and social issues , and foster transparency and long-termism in financial and economic activity33. the disclosure by undertakings of relevant , comparable and reliable sustainability information is a prerequisite for meeting those objectives. the european parliament and the council adopted a number of legislative acts as part of the implementation of the action plan on financing sustainable growth. regulation (eu) 2019/2088 of the european parliament and of the council34 governs how financial market participants and financial advisers are to disclose sustainability information to end investors and asset owners. regulation (eu) 2020/852 of the european parliament and of the council35 creates a classification system of environmentally sustainable economic activities with the aim of scaling up sustainable investments and combatting greenwashing of financial products that unduly claim to be sustainable. regulation (eu) 2019/2089 of the european parliament and of the council36 , complemented by commission delegated regulations (eu) 2020/181637 , (eu) 2020/181738 and (eu) 2020/181839 , introduces environmental , social and governance (‘esg’) disclosure requirements for benchmarks administrators and minimum standards for the construction of eu climate transition benchmarks and eu paris-aligned benchmarks. regulation (eu) no 575/2013 of the european parliament and of the council40 requires large institutions which have issued securities that are admitted to trading on a regulated market to disclose information on esg risks from 28 june 2022. the new prudential framework for investment firms set by regulation (eu) 2019/2033 of the european parliament and of the council41 and directive (eu) 2019/2034 of the european parliament and of the council42 contains provisions concerning the introduction of an esg risk dimension in the supervisory review and evaluation process (srep) by competent authorities , and contains esg risks disclosure requirements for investment firms , applicable from 26 december 2022. the commission has also announced a proposal on a european green bond standard in its work programme for 2021 , following up on the action plan on financing sustainable growth. ### (2) in its communication entitled action plan: financing sustainable growth , the commission set out measures to achieve the following objectives: reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth , manage financial risks stemming from climate change , resource depletion , environmental degradation and social issues , and foster transparency and long-termism in financial and economic activity33 . the disclosure by certain categories of undertakings of relevant , comparable and reliable sustainability information is a prerequisite for meeting those objectives. the european parliament and the council adopted a number of legislative acts as part of the implementation of the action plan on financing sustainable growth. regulation (eu) 2019/2088 of the european parliament and of the council34 governs how financial market participants and financial advisers are to disclose sustainability information to end investors and asset owners. regulation (eu) 2020/852 of the european parliament and of the council35 creates a classification system of environmentally sustainable economic activities with the aim of scaling up sustainable investments and combatting greenwashing of financial products that unduly claim to be sustainable. regulation (eu) 2019/2089 of the european parliament and of the council36 , complemented by commission delegated regulations (eu) 2020/181637 , (eu) 2020/181738 and (eu) 2020/181839 , introduces environmental , social and governance (‘esg’) disclosure requirements for benchmarks administrators and minimum standards for the construction of eu climate transition benchmarks and eu paris-aligned benchmarks. regulation (eu) no 575/2013 of the european parliament and of the council40 requires large institutions which have issued securities that are admitted to trading on a regulated market to disclose information on esg risks from 28 june 2022. the new prudential framework for investment firms set by regulation (eu) 2019/2033 of the european parliament and of the council41 and directive (eu) 2019/2034 of the european parliament and of the council42 contains provisions concerning the introduction of an esg risk dimension in the supervisory review and evaluation process (srep) by competent authorities , and contains esg risks disclosure requirements for investment firms , applicable from 26 december 2022. the commission has also announced a proposal on a european green bond standard in its work programme for 2021 , following up on the action plan on financing sustainable growth.


### (17) the requirement that undertakings not established in the union but with securities listed on regulated markets should also disclose information on sustainability matters responds to the needs of financial market participants for information from such undertakings in order to understand the risks and impacts of their investments , and to comply with the disclosure requirements laid down in regulation (eu) 2019/2088. ### (17) the requirement that undertakings not established in the union but with securities listed on regulated markets or doing business in the eu internal market should also disclose information on sustainability matters responds to the needs of financial market participants for information from such undertakings in order to understand the risks and impacts of their investments , and to comply with the disclosure requirements laid down in regulation (eu) 2019/2088.


### (17) the requirement that undertakings not established in the union but with securities listed on regulated markets should also disclose information on sustainability matters responds to the needs of financial market participants for information from such undertakings in order to understand the risks and impacts of their investments , and to comply with the disclosure requirements laid down in regulation (eu) 2019/2088. ### (17) the requirement that undertakings not established in the union but with securities listed on regulated markets or doing business in the union internal market should also disclose information on sustainability matters responds to the needs of financial market participants for information from such undertakings in order to understand the risks and impacts of their investments , and to comply with the disclosure requirements laid down in regulation (eu) 2019/2088.


### (19) directive 2004/109/ec of the european parliament and of the council49 applies to all undertakings with securities listed on regulated markets. in order to ensure that all undertakings with securities listed on regulated markets , including third country issuers , fall under the same sustainability reporting requirements , directive 2004/109/ec should contain the necessary cross-references to any requirement on sustainability reporting in the annual financial report. ### (19) directive 2004/109/ec of the european parliament and of the council49 applies to all undertakings with securities listed on regulated markets. in order to ensure that all undertakings with securities listed on regulated markets or business activities in the eu internal market , including third country issuers , fall under the same sustainability reporting requirements , directive 2004/109/ec should contain the necessary cross-references to any requirement on sustainability reporting in the annual financial report.


### (19) directive 2004/109/ec of the european parliament and of the council49 applies to all undertakings with securities listed on regulated markets. in order to ensure that all undertakings with securities listed on regulated markets , including third country issuers , fall under the same sustainability reporting requirements , directive 2004/109/ec should contain the necessary cross-references to any requirement on sustainability reporting in the annual financial report. ### (19) directive 2004/109/ec of the european parliament and of the council49 applies to all undertakings with securities listed on regulated markets. in order to ensure that all undertakings with securities listed on regulated markets or business activities in the union internal market , including third country issuers , fall under the same sustainability reporting requirements , directive 2004/109/ec should contain the necessary cross-references to any requirement on sustainability reporting in the annual financial report.


### (41) with regard to climate-related information , users are interested in knowing about undertakings’ physical and transition risks , and about their resilience to different climate scenarios. they are also interested in the level and scope of greenhouse gas emissions and removals attributed to the undertaking , including the extent to which the undertaking uses offsets and the source of those offsets. achieving a climate neutral economy requires the alignment of greenhouse gas accounting and offset standards. users need reliable information regarding offsets that addresses concerns regarding possible double-counting and overestimations , given the risks to the achievement of climate-related targets that double-counting and overestimations can create. the reporting standards should therefore specify the information undertakings should report with regard to those matters. ### (41) with regard to climate-related information , users are interested in knowing about undertakings’ physical and transition risks , and about their resilience to different climate scenarios and public policies for climate change mitigation and energy transition. they are also interested in the level and scope of greenhouse gas emissions and removals attributed to the undertaking , including the extent to which the undertaking uses offsets and the source of those offsets. achieving a climate neutral economy requires the alignment of greenhouse gas accounting and offset standards. users need reliable information regarding offsets that addresses concerns regarding possible double-counting and overestimations , given the risks to the achievement of climate-related targets that double-counting and overestimations can create. the reporting standards should therefore specify the information undertakings should report with regard to those matters.


### (41) with regard to climate-related information , users are interested in knowing about undertakings’ physical and transition risks , and about their resilience to different climate scenarios. they are also interested in the level and scope of greenhouse gas emissions and removals attributed to the undertaking , including the extent to which the undertaking uses offsets and the source of those offsets. achieving a climate neutral economy requires the alignment of greenhouse gas accounting and offset standards. users need reliable information regarding offsets that addresses concerns regarding possible double-counting and overestimations , given the risks to the achievement of climate-related targets that double-counting and overestimations can create. the reporting standards should therefore specify the information undertakings should report with regard to those matters. ### deleted


### (46) undertakings in the same sector are often exposed to similar sustainability-related risks , and they often have similar impacts on society and the environment. comparisons between undertakings in the same sector are especially valuable to investors and other users of sustainability information. sustainability reporting standards adopted by the commission should therefore specify both information that undertakings in all sectors should disclose and information that undertakings should disclose depending on their sector of activity. standards should also take account of the difficulties that undertakings may encounter in gathering information from actors throughout their value chain , especially from sme suppliers and from suppliers in emerging markets and economies. ### (46) undertakings in the same sector are often exposed to similar sustainability-related risks , and they often have similar impacts on society and the environment. comparisons between undertakings in the same sector are especially valuable to investors and other users of sustainability information.


### (4) the following articles 19b , 19c and 19d are inserted: ### (4) the following articles 19b and 19d are inserted:


### 4. the following articles 19b , 19c and 19d are inserted: ### 4. the following articles 19b and 19d are inserted:


### 2. the power to adopt delegated acts referred to in article 1(2) , article 3(13) , article 46(2) , article 19b and article 19c shall be conferred on the commission for an indeterminate period of time. ### 2. the power to adopt delegated acts referred to in article 1(2) , article 3(13) , article 46(2) and article 19b shall be conferred on the commission for an indeterminate period of time.


### 3. the delegation of power referred to in article 1(2) , article 3(13) , article 46(2) , article 19b and article 19c may be revoked at any time by the european parliament or by the council. a decision to revoke shall put an end to the delegation of the power specified in that decision. it shall take effect the day following the publication of that decision in the official journal of the european union or at a later date specified therein. it shall not affect the validity of any delegated acts already in force.; ### 3. the delegation of power referred to in article 1(2) , article 3(13) , article 46(2) and article 19b may be revoked at any time by the european parliament or by the council. a decision to revoke shall put an end to the delegation of the power specified in that decision. it shall take effect the day following the publication of that decision in the official journal of the european union or at a later date specified therein. it shall not affect the validity of any delegated acts already in force.;


### 2. the power to adopt delegated acts referred to in article 1(2) , article 3(13) , article 46(2) , article 19b and article 19c shall be conferred on the commission for an indeterminate period of time. ### 2. the power to adopt delegated acts referred to in article 1(2) , article 3(13) , article 46(2) and article 19b shall be conferred on the commission for an period in a five-year rolling process followed by a subsequent scrutiny phase by the council and the parliament.


### 3. the delegation of power referred to in article 1(2) , article 3(13) , article 46(2) , article 19b and article 19c may be revoked at any time by the european parliament or by the council. a decision to revoke shall put an end to the delegation of the power specified in that decision. it shall take effect the day following the publication of that decision in the official journal of the european union or at a later date specified therein. it shall not affect the validity of any delegated acts already in force.; ### 3. the delegation of power referred to in article1(2) , article 3(13) , article 46(2) , and article 19b may be revoked at any time by the european parliament or by the council. a decision to revoke shall put amend to the delegation of the power specified in that decision. it shall take effect the day following the publication of that decision in the official journal of the european union or at a later date specified therein. it shall not affect the validity of any delegated acts already in force.;


### 2. the power to adopt delegated acts referred to in article 1(2) , article 3(13) , article 46(2) , article 19b and article 19c shall be conferred on the commission for an indeterminate period of time. ### 2. the power to adopt delegated acts referred to in article 1(2) , article 3(13) , article 46(2) and article 19b shall be conferred on the commission for a period in a five-year rolling process followed by a subsequent scrutiny phase by the council and the parliament.


### 5. a delegated act adopted pursuant to article 1(2) , article 3(13) , article 46(2) , article 19b and article 19c shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of two months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object. that period shall be extended by two months at the initiative of the european parliament or the council. ### 5. a delegated act adopted pursuant to article 1(2) , article 3(13) , article 46(2) and article 19b shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of four months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object. that period shall be extended by four months at the initiative of the european parliament or the council.


### 5. a delegated act adopted pursuant to article 1(2) , article 3(13) , article 46(2) , article 19b and article 19c shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of two months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object. that period shall be extended by two months at the initiative of the european parliament or the council. ### 5. a delegated act adopted pursuant to article 1(2) , article 3(13) , article 46(2) , article 19b shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of four months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object. that period shall be extended by four months at the initiative of the european parliament or the council.


### 5. a delegated act adopted pursuant to article 1(2) , article 3(13) , article 46(2) , article 19b and article 19c shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of two months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object. that period shall be extended by two months at the initiative of the european parliament or the council. ### 5. a delegated act adopted pursuant to article 1(2) , article 3(13) , article 46(2) , article 19b and article 19c shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of four months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object. that period shall be extended by two months at the initiative of the european parliament or the council.


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


### member states shall provide that the provisions referred to in the first subparagraph shall apply for financial years starting on or after 1 january 2023 ### member states shall provide that the provisions referred to in the first subparagraph shall apply for financial years not earlier than two full financial years during which the undertakings 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.


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


### article 4 of this directive shall apply to financial years starting on or after 1 january 2023. ### article 4 of this directive shall apply to financial years starting on or after 1 january 2024.


### article 4 of this directive shall apply to financial years starting on or after 1 january 2023. ### article 4 of this directive shall apply to financial years starting not earlier than one full financial years during which the undertakings 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..


### article 4 of this directive shall apply to financial years starting on or after 1 january 2023. ### article 4 of this directive shall apply to financial years not earlier than one full financial year during which the undertakings 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


### (22) article 23 of directive 2013/34/eu exempts parent undertakings from the obligation to prepare consolidated financial statements and a consolidated management report where those undertakings are subsidiaries of another parent undertaking that complies with that obligation. it should be specified , however , that the exemption regime for consolidated financial statements and consolidated management reports operates independently from the exemption regime for consolidated sustainability reporting. an undertaking can therefore be exempted from consolidated financial reporting obligations but not exempted from consolidated sustainability reporting obligations where its ultimate parent prepares consolidated financial statements and consolidated management reports in accordance with union law , or in accordance with equivalent requirements if the undertaking is established in a third country , but does not prepare consolidated sustainability reporting in accordance with eu law , or in accordance with equivalent requirements if the undertaking is established in a third country. ### (22) article 23 of directive 2013/34/eu exempts parent undertakings from the obligation to prepare consolidated financial statements and a consolidated management report where those undertakings are subsidiaries of another parent undertaking that complies with that obligation. it should be specified , however , that the exemption regime for consolidated financial statements and consolidated management reports operates independently from the exemption regime for consolidated sustainability reporting. an undertaking can therefore still be exempted from consolidated financial reporting obligations and exempted from consolidated sustainability reporting obligations where its ultimate parent prepares consolidated financial statements and consolidated management reports in accordance with union law , or in accordance with requirements in international frameworks if the undertaking is established in a third country , but does not prepare consolidated sustainability reporting in accordance with eu law , or in accordance with international frameworks if the undertaking is established in a third country.


### (22) article 23 of directive 2013/34/eu exempts parent undertakings from the obligation to prepare consolidated financial statements and a consolidated management report where those undertakings are subsidiaries of another parent undertaking that complies with that obligation. it should be specified , however , that the exemption regime for consolidated financial statements and consolidated management reports operates independently from the exemption regime for consolidated sustainability reporting. an undertaking can therefore be exempted from consolidated financial reporting obligations but not exempted from consolidated sustainability reporting obligations where its ultimate parent prepares consolidated financial statements and consolidated management reports in accordance with union law , or in accordance with equivalent requirements if the undertaking is established in a third country , but does not prepare consolidated sustainability reporting in accordance with eu law , or in accordance with equivalent requirements if the undertaking is established in a third country. ### (22) article 23 of directive 2013/34/eu exempts parent undertakings from the obligation to prepare consolidated financial statements and a consolidated management report where those undertakings are subsidiaries of another parent undertaking that complies with that obligation. it should be specified , however , that the exemption regime for consolidated financial statements and consolidated management reports operates independently from the exemption regime for consolidated sustainability reporting. an undertaking can therefore still be exempted from consolidated financial reporting obligations and exempted from consolidated sustainability reporting obligations where its ultimate parent prepares consolidated financial statements and consolidated management reports in accordance with union law , or in accordance with equivalent requirements in international frameworks if the undertaking is established in a third country , but does not prepare consolidated sustainability reporting in accordance with eu law , or in accordance with international frameworks if the undertaking is established in a third country.


### (30) articles 19a(1) and 29a(1) of directive 2013/34/eu require undertakings to include in their non-financial reporting references to , and additional explanations of , amounts reported in the annual financial statements. those articles do , however , not require undertakings to make references to other information in the management report or to add additional explanations to that information. there is currently thus a lack of consistency between non-financial information reported and the rest of the information disclosed in the management report. it is necessary to lay down clear requirements in this regard. ### (30) articles 19a(1) and 29a(1) of directive 2013/34/eu require undertakings to include in their non-financial reporting references to , and additional explanations of , amounts reported in the annual financial statements. those articles do , however , not require undertakings to make references to other information in the management report or to add additional explanations to that information. therefore , there can currently be a lack of consistency between non-financial information reported and the rest of the information disclosed in the management report. it is important for companies to consider which sustainability information is relevant from a financial point of view and should therefore be included in the management report , or whether , depending on the materiality for stakeholders other than those targeted by the annual report , it would be better provided in a separate document.


### (45) the reporting standards should promote a more integrated view of all the information published by undertakings in the management report to provide users of that information with a better understanding of the development , performance , position and impact of the undertaking. those standards should distinguish as necessary between information that undertakings should disclose when reporting at individual level and the information that undertakings should disclose when reporting at consolidated level. those standards should also contain guidance for undertakings on the process carried out to identify the sustainability information that should be included in the management report. ### (45) the reporting standards should promote a more integrated view of all the information published by undertakings in the management report to provide users of that information with a better understanding of the development , performance , position and impact of the undertaking. those standards should distinguish as necessary between information that undertakings should disclose when reporting at individual level and the information that undertakings should disclose when reporting at consolidated level but without revealing confidential know-how and trade secrets. those standards should also contain guidance for undertakings on the process carried out to identify the sustainability information that should be included in the management report.


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


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


### (54) statutory auditors or audit firms already verify the financial statements and the management report. the assurance of sustainability reporting by the statutory auditors or audit firms would help to ensure the connectivity between , and consistency of , financial and sustainability information , which is particularly important for by users of sustainability information. however , there is a risk of further concentration of the audit market , which could risk the independence of auditors and increase audit or assurance fees. it is therefore desirable to offer undertakings a broader choice of independent assurance service providers for the assurance of sustainably reporting. member states should therefore be allowed to accredit independent assurance services providers in accordance with regulation (ec) no 765/2008 of the european parliament and of the council66 to provide an opinion on sustainability reporting , which should be published together with the management report. member states should set out requirements that ensure consistent outcomes in the assurance of sustainability reporting carried out by different assurance service providers. therefore , all independent assurance services providers should be subject to requirements that are consistent with those set out in directive 2006/43/ec as regards the assurance of sustainability reporting. this will also guarantee a level playing field among all persons and firms allowed by member states to provide the opinion on the assurance of sustainability reporting , including statutory auditors. if an undertaking seeks the opinion of an accredited independent assurance services provider other than the statutory auditor on its sustainability reporting , it should not in addition need to request this opinion from the statutory auditor. ### (54) statutory auditors or audit firms already verify the financial statements and the management report. the assurance of sustainability reporting by the statutory auditors or audit firms would help to ensure the connectivity between , and consistency of , financial and sustainability information , which is particularly important for by users of sustainability information. however , there is a risk of further concentration of the audit market , which could risk the independence of auditors and increase audit or assurance fees. it is therefore desirable to offer undertakings a broader choice of independent assurance service providers for the assurance of sustainably reporting. member states should therefore be allowed to accredit independent assurance services providers in accordance with regulation (ec) no 765/2008 of the european parliament and of the council66 to provide an opinion on sustainability reporting , which should be published together with the management report. member states should set out requirements that ensure consistent outcomes in the assurance of sustainability reporting carried out by different assurance service providers. therefore , all independent assurance services providers should be subject to requirements that are consistent with those set out in directive 2006/43/ec as regards the assurance of sustainability reporting except for chapter iii of directive 2006/43/ec. this will also guarantee a level playing field among all persons and firms allowed by member states to provide the opinion on the assurance of sustainability reporting , including statutory auditors. if an undertaking seeks the opinion of an accredited independent assurance services provider other than the statutory auditor on its sustainability reporting , it should not in addition need to request this opinion from the statutory auditor.


### (1) member states shall ensure that the members of the administrative , management and supervisory bodies of an undertaking , acting within the competences assigned to them by national law , have collective responsibility for ensuring that the following documents are drawn up and published in accordance with the requirements of this directive and , where applicable , with the international accounting standards adopted in accordance with regulation (ec) no 1606/2002 , with delegated regulation 2019/815 , with the sustainability reporting standards referred to in article 19b of this directive , and with the requirements of article 19d of this directive: ### (1) member states shall ensure that the members of the administrative , management and supervisory bodies of an undertaking , acting within the competences assigned to them by national law and with a clearly defined division of responsibility , ensure that the following documents are drawn up and published in accordance with the requirements of this directive and , where applicable , with the international accounting standards adopted in accordance with regulation (ec) no 1606/2002 , with delegated regulation 2019/815 , with the sustainability reporting standards referred to in article 19b of this directive , and with the requirements of article 19d of this directive:


### 3. member states may allow an independent assurance services provider to express the opinion referred to in paragraph 1 , second subparagraph , point (aa) , provided that it is subject to requirements that are consistent with those set out in directive 2006/43/ec as regards the assurance of sustainability reporting as defined in article 2(1) , point (r) of that directive. ### 3. member states may allow an independent assurance services provider to express the opinion referred to in paragraph 1 , second subparagraph , point (aa) , provided that it is subject to requirements that are consistent with those set out in directive 2006/43/ec except for chapter iii as regards the assurance of sustainability reporting as defined in article 2(1) , point (r) of that directive.


### this directive establishes rules concerning the statutory audit of annual and consolidated accounts and the assurance of annual and consolidated sustainability reporting , where this is performed by the statutory auditor or audit firm carrying out the statutory audit of financial statements.; ### this directive establishes rules concerning the statutory audit of annual and consolidated accounts and the assurance of annual and consolidated sustainability reporting , where this is performed by the statutory auditor or audit firm carrying out the statutory audit of financial statements or other independent assurance service providers.


### 22. ‘assurance of sustainability reporting’ means the opinion expressed by the statutory auditor or audit firm in accordance with article 34(1) , second subparagraph , point (aa) and article 34(2) of directive 2013/34/eu .; ### 22. ‘assurance of sustainability reporting’ means the opinion expressed by the statutory auditor or audit firm or other independent assurance service providers in accordance with article 34(1) , second subparagraph , point (aa) and article 34(2) of directive 2013/34/eu .;


### (ff) due diligence processes with regard to sustainability matters;; ### deleted


### (1) in order to ensure the ability to apply theoretical knowledge in practice , a test of which is included in the examination , a trainee shall complete a minimum of three years’ practical training in , inter alia , the auditing of annual financial statements , consolidated financial statements or similar financial statements and the assurance of annual and consolidated sustainability reporting. at least two thirds of such practical training shall be completed with a statutory auditor or audit firm approved in any member state. ### (1) in order to ensure the ability to apply theoretical knowledge in practice , a test of which is included in the examination , a trainee shall complete practical training in , inter alia , the auditing of annual financial statements , consolidated financial statements or similar financial statements and the assurance of annual and consolidated sustainability reporting. member states shall decide on the duration of the practical training , which must not be less than two years. at least two thirds of such practical training shall be completed with a statutory auditor or audit firm approved in any member state.


### member states shall ensure that statutory auditors approved before 1 january 2023 acquire the necessary knowledge in sustainability reporting and the assurance of sustainability reporting via the continuing education requirement of article 13.’; ### member states shall ensure that statutory auditors approved before 1 january 2023 acquire the necessary knowledge in sustainability reporting and the assurance of sustainability reporting via the continuing education requirement of article 13. member states shall ensure that the audit bodies for sustainability reports have a high level of technical and specialised expertise in the field of sustainability in order to assess the information.’;


### the audit report shall be signed and dated by the statutory auditor. where an audit firm carries out the statutory audit and , where applicable , the assurance of sustainability reporting , the audit report shall bear the signature of at least the statutory auditor(s) carrying out the statutory audit and the assurance of sustainability reporting on behalf of the audit firm. where more than one statutory auditor or audit firm have been simultaneously engaged , the audit report shall be signed by all statutory auditors or at least by the statutory auditors carrying out the statutory audit and the assurance of sustainability reporting on behalf of every audit firm. in exceptional circumstances member states may provide that such signature(s) need not be disclosed to the public if such disclosure could lead to an imminent and significant threat to the personal security of any person.; ### the audit report shall be signed and dated by the statutory auditor. where an audit firm carries out the statutory audit and where applicable , the assurance of sustainability reporting , the audit report shall bear the signature of at least the statutory auditor(s) carrying out the statutory audit and the assurance of sustainability reporting on behalf of the audit firm. where more than one statutory auditor or audit firm have been simultaneously engaged , the audit report shall be signed by all statutory auditors or at least by the statutory auditors carrying out the statutory audit and the assurance of sustainability reporting on behalf of every audit firm. in exceptional circumstances member states may provide that such signature(s) need not be disclosed to the public if such disclosure could lead to an imminent and significant threat to the personal security of any person.;


### inform the administrative or supervisory body of the audited entity of the outcome of the statutory audit and of the outcome of the assurance of sustainability reporting and explain how the statutory audit and the assurance of sustainability reporting contributed to the integrity of financial and sustainability reporting and what the role of the audit committee was in that process; ### inform the administrative or supervisory body of the audited entity of the outcome of the statutory audit and of the outcome of the assurance of sustainability reporting and explain how the statutory audit and the assurance of sustainability reporting contributed to the integrity of financial and sustainability reporting and what the role of the audit committee was in that process; the audited company may task another committee of such issues;