### a description of the targets related to sustainability matters set by the undertaking and of the progress the undertaking has made towards achieving those targets; ### a description of the science-based and time-bound short-term , mid-term and long-term targets set by the undertaking to address the principal risks , opportunities and impacts of its activities with regards to sustainability matters , along with corresponding evidence;


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


### a description of the undertaking’s policies in relation to sustainability matters; ### a description of the undertaking’s policies in relation to sustainability matters and in particular with respect to identified actual or potential severe impacts and opportunities;


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process implemented with regard to sustainability matters in line with applicable union legislation on due diligence [directive xxx];


### (ii) the principal actual or potential adverse impacts connected with the undertaking’s value chain , including its own operations , its products and services , its business relationships and its supply chain; ### (ii) the actual or potential adverse impacts connected with the undertaking’s value chain as identified through the due diligence process , including its own operations , its products and services , its subsidiaries , its business relationships and its supply chain , including information on people affected by those impacts;


### (iii) any actions taken , and the result of such actions , to prevent , mitigate or remediate actual or potential adverse impacts; ### (iii) any actions taken , and the result of such actions , to identify , assess , prevent , mitigate , cease , monitor , communicate , account for , address and remediate actual or potential adverse impacts;


### where appropriate , the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s value chain , including the undertaking’s own operations , products and services , its business relationships and its supply chain. ### the information referred to in paragraphs 1 and 2 shall contain all information about the undertaking’s value chain , including the undertaking’s own operations , workforce , investments , assets , products and services , its business relationships and its supply chain that is useful in order to understand the impacts and risks related to sustainability matters for the undertaking.


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


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


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


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


### the management report of an undertaking that is exempted from the obligations set out in paragraphs 1 to 4 shall contain all of the following information: ### the management report of a subsidiary of a parent undertaking subjected to the obligations set out in paragraphs 1 to 4 shall contain all of the following information:


### the fact that the undertaking is exempted from the obligations set out in paragraphs 1 to 4 of this article. ### deleted


### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities; ### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development and the average expenditure on training per worker and employment and inclusion of people with disabilities on a country-by-country base;


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) undertaking’s workforce , on a country-by-country basis:


### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union. ### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and governance conventions and the ilo´s tripartite declaration of principles concerning multinational enterprises and social policy the european convention of human rights , the european social charter (revised) , the oecd guidelines for multinational enterprises and the charter of fundamental rights of the european union and the eu labour law acquis , including the right for workers to be informed and consulted by management prior to the making of final decisions on matters of significance importance to the workforce;


### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition; ### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition and the presence of workers’ representatives , and their trade unions , with a focus on selection procedures , level of information and voting rights compare to other members of these bodies;


### (ii) business ethics and corporate culture , including anti-corruption and anti-bribery; ### (ii) business ethics and corporate culture , including anti-corruption and anti-bribery programmes , assessment of corruption risks , and whistleblowing procedures and results;


### specify the information that undertakings are to disclose about social factors , including information about: ### specify the information that undertakings are to disclose about social factors , disaggregated by sex when possible , including information about:


### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities; ### workforce diversity , equal opportunities for all , including gender equality , measures to strengthen the application of the principle of equal pay for equal work or work of equal value , including through pay transparency , training and skills development , and employment and inclusion of people with disabilities;


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , including flexible working arrangements , maternity , paternity and parental leave , and a healthy , safe and well-adapted work environment , including measures to prevent and eliminate violence and harassment from an inclusive , integrated and gender-responsive approach;


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


### the commission shall adopt delegated acts in accordance with article 49 to provide for sustainability reporting standards. those sustainability reporting standards shall specify the information that undertakings are to report in accordance with articles 19a and 29a and , where relevant , shall specify the structure in which that information shall be reported. in particular: ### the commission shall adopt delegated acts in accordance with article 49 to provide for sustainability reporting standards. european standards should support and contribute to the process to develop standards by the international sustainability standards board. those sustainability reporting standards shall specify the information that undertakings are to report in accordance with articles 19a and 29a and , where relevant , shall specify the structure in which that information shall be reported. in particular:


### (ii) information that undertakings shall report that is specific to the sector in which they operate. ### (ii) information that undertakings shall report that is specific to the sector in which they operate , prioritizing the high-impact sectors referred to in annex iia.


### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards. ### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article. it shall guarantee the involvement of trade unions in that process , and include other relevant stakeholders and civil society organisations. the european commission may rely on the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards.


### the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , and is represented in a faithful manner. ### the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , and is represented in a faithful manner. when applicable , the information shall be science-based and measurable.


### climate change mitigation; ### climate change mitigation; including


### (iii) water and marine resources; ### (iii) water and marine resources; including targets to limit the use and pollution of water;


### pollution; ### pollution; including plastic pollution and diffuse pollution , targets to reduce pollution and detailed plans to achieve those targets;


### (vi) biodiversity and ecosystems; ### (vi) biodiversity and ecosystems; including targets to reduce biodiversity loss , deforestation and impacts on wildlife , as well as detailed plans to achieve those targets;


### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union. ### (iii) implementation and results of the undertaking’s due diligence process to meet its responsibility to respect human rights , understood as those human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union.


### (ii) information that undertakings shall report that is specific to the sector in which they operate. ### (ii) information that undertakings shall report that is specific to the sector or the area in which they operate , and as a matter of priority , information that undertaking operating in high-risk sectors and high-risk areas shall report.


### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards. ### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article. it shall conduct appropriate consultations and may rely on the technical advice of the european financial reporting advisory group (efrag) , provided that such advice has been developed by an independent technical advisory body funded by the european union and financially independent from private stakeholders , with proper due process , public oversight , transparency , and with the expertise , direct and balanced participation of relevant stakeholders. where necessary , the commission shall amend such delegated act to take into account relevant developments , including developments with regard to international standards.


### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards. ### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article. it shall guarantee the involvement of trade unions in that process , and include other relevant stakeholders and civil society organisations. it shall take into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards.


### 2. the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , and is represented in a faithful manner. ### 2. the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , and is represented in a faithful manner. in all cases possible , the information shall be science-based and measurable.


### climate change mitigation; ### climate change mitigation , including substantiated explanation on the alignment of the undertaking’s business model and strategy with the goal of limiting of global warming to 1.5 °c with no or limited overshoot and recourse to compensation technologies , pursuant to the latest evidence provided by the ipcc;


### climate change mitigation; ### climate change mitigation , including absolute and relative emission reduction targets on a 5 years rolling basis , as well as milestone targets for 2030 and 2050;


### climate change mitigation; ### climate change mitigation , including detailed transition plans to achieve those targets including economic , financial and investment programs;


### climate change mitigation; ### climate change mitigation , including greenhouse gas emissions (scope 1 , 2 and 3);


### (ii) climate change adaptation; ### (ii) climate change adaptation , including risks identified by the undertaking for his operations under different climate scenarios , targets and detailed transition plans to address these risks;


### (iii) water and marine resources; ### (iii) use of water , soil , land and marine resources , including information on the changes in quality or quantity of those resources , and the fair access to those resources by other users and local stakeholders;


### (iv) resource use and circular economy; ### (iv) resource use and targets to limit the use of resource and in particular rare resources , and circular economy , including targets related to the reparability of assets and products , to upstream and downstream recycling , as well as detailed plans to achieve those targets;


### pollution; ### pollution of any kind , including plastic pollution , water , air and soil pollution , diffuse pollution , targets to reduce pollution and detailed plans to achieve those targets;


### (vi) biodiversity and ecosystems; ### (vi) biodiversity and ecosystems , including targets to reduce deforestation and impacts on wildlife , as well as detailed plans to achieve those targets;


### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities; ### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development and the average expenditure on training per worker , and employment and inclusion of people with disabilities , and steps taken to reduce inequalities;


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment , including country-by-country-data on psychological and physical risks for workers , workplace accidents and safety programmes to protect workers against health risks;


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) country-by-country data on working conditions , including secure and adaptable employment , wages , social dialogue , including freedom of association , collective bargaining coverage , board-level employee representation where applicable , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment;


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) country-by-country data on working conditions , including secure and adaptable employment , wages , including wage levels disaggregated per deciles and comparison with applicable minimum wage and living wage levels , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment;


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , including country-by-country data on working time and numbers of days of annual paid leave and medical leave per type of occupation , and a healthy , safe and well-adapted work environment;


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) country-by-country data on working conditions , including secure and adaptable employment , wages , including wage levels disaggregated per category of occupations , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment;


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) country-by-country data on working conditions , including secure and adaptable employment , wages , including management to workers pay ratio and median pay gap , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment;


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) country-by-country data on working conditions , including secure and adaptable employment , wages including wage levels per gender , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment;


### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union. ### (iii) implementation and results of the undertaking’s due diligence process to meet its responsibility to respect human rights , understood as those human rights respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work , the relevant ilo conventions and in particular the fundamental conventions of the international labour organisation , the european convention on human rights , the european social charter , the charter of fundamental rights of the european union , the united nations guiding principles on business and human rights and the oecd guidelines for multinational enterprises


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


### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition; ### the role , responsibility and composition of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , including the link between executive and non-executive directors’ variable remuneration and the achievement of sustainability targets;


### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition; ### the composition , responsibility and role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , including employee representation and rights in such bodies;


### (ii) business ethics and corporate culture , including anti-corruption and anti-bribery; ### (ii) assessment of corruption risks , anti-corruption and anti-bribery programmes , internal alert-mechanisms;


### (iii) political engagements of the undertaking , including its lobbying activities; ### (iii) political engagements of the undertaking , including its direct lobbying activities , expenses , and political donations , as well as membership , affiliation or participation of the undertaking to organisations exercising lobbying activities , and funding of think tanks exercising lobbying activities;


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


### 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 and machine-readable reporting format in accordance with article 3 of commission delegated regulation (eu) 2019/815*15 , following open data principles 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. the mark-up must be compatible with the consolidation and re-use of such data in a european single access point as described in action 1 of the commission communication entitled ‘a capital markets union for people and businesses – new action plan’.


### 2. undertakings subject to article 29a shall prepare their consolidated financial statements and their consolidated management report in a single electronic reporting format in accordance with article 3 of delegated regulation (eu) 2019/815 and shall mark-up sustainability reporting , including the disclosures laid down in article 8 of regulation (eu) 2020/852. ### 2. undertakings subject to article 29a shall prepare their consolidated financial statements and their consolidated management report in a single electronic reporting format in accordance with article 3 of delegated regulation (eu) 2019/815 and shall mark-up sustainability reporting , including the disclosures laid down in article 8 of regulation (eu) 2020/852. the mark-up must be compatible with the format specified in paragraph 1.


### (ii) information that undertakings shall report that is specific to the sector in which they operate. ### (ii) information that undertakings shall report that is specific to the sector or the area in which they operate , and as a matter of priority , information that undertaking operating in high-risk sectors and high-risk areas shall report.


### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards. ### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article. it shall guarantee the involvement of trade unions in that process , and include other relevant stakeholders and civil society organisations. the european commission may rely on the technical advice of the european financial reporting advisory group (efrag) , provided that such advice has been developed by an independent technical advisory body funded by the european union and financially independent from private stakeholders , with proper due process , public oversight , transparency , and with the expertise , direct and balanced participation of relevant stakeholders. where necessary , the european commission shall amend such delegated act to take into account relevant developments , including developments with regard to international standards.


### 2. the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , and is represented in a faithful manner. ### 2. the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , and is represented in a faithful manner. when applicable , the information shall be science-based and measurable.


### climate change mitigation; ### climate change mitigation , including substantiated explanation on the alignment of the undertaking’s business model and strategy with the goal of limiting of global warming to 1.5 °c with no or limited overshoot and recourse to compensation technologies , pursuant to the latest evidence provided by the ipcc;


### climate change mitigation; ### climate change mitigation , including absolute and relative emission reduction targets on a 5 years rolling basis , as well as milestone targets for 2030 and 2050;


### climate change mitigation; ### climate change mitigation , including detailed transition plans to achieve those targets including economic , financial and investment programs;


### climate change mitigation; ### climate change mitigation , including greenhouse gas emissions (scope 1 , 2 and 3);


### (ii) climate change adaptation; ### (ii) climate change adaptation , including risks identified by the undertaking for its operations under different climate scenarios , targets and detailed transition plans to address these risks;


### (iii) water and marine resources; ### (iii) use of water , soil , land and marine resources , including information on the changes in quality or quantity of those resources and the fair access to those resources by other users and local stakeholders;


### (iv) resource use and circular economy; ### (iv) resource use and targets to limit the use of resource and in particular rare resources , and circular economy , including targets related to the reparability of assets and products , to upstream and downstream recycling , as well as detailed plans to achieve those targets;


### pollution; ### pollution of any kind , including plastic pollution , water , air and soil pollution , diffuse pollution , targets to reduce pollution and detailed plans to achieve those targets;


### (vi) biodiversity and ecosystems; ### (vi) biodiversity and ecosystems , including targets to reduce deforestation and impacts on wildlife , as well as detailed plans to achieve those targets;


### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities; ### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development and the average expenditure on training per worker , employment and inclusion of people with disabilities , and steps taken to reduce inequalities on a country-by-country base;


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) country-by-country data on working conditions , including secure and adaptable employment , wages , including wage levels disaggregated per gender , per deciles , per category of occupation , management to workers pay ratio and median pay gap , and comparison with applicable minimum wage and living wage levels , social dialogue , including freedom of association , collective bargaining coverage , board-level employee representation where applicable , work-life balance , including working time and leave per type of occupation , and a healthy , safe and well-adapted work environment , including data on workplace accidents and safety programs;


### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union. ### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work , the relevant ilo conventions and in particular the ilo fundamental conventions , the european convention on human rights , the european social charter , the charter of fundamental rights of the european union , the un guiding principles on business and human rights and the oecd guidelines for multinational enterprises;


### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition; ### the role , responsibility and composition of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , including the link between executive and non-executive directors’ variable remuneration and the achievement of sustainability targets;


### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition; ### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition , including their engagement in the analysis of main risks and opportunities for the undertaking related to sustainability matters;


### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition; ### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition , including their engagement in the due diligence process and engagement with the stakeholders affected by the identified impacts;


### (ii) business ethics and corporate culture , including anti-corruption and anti-bribery; ### (ii) assessment of corruption risks , anti-corruption and anti-bribery programmes , internal alert mechanisms;


### (iii) political engagements of the undertaking , including its lobbying activities; ### (iii) political engagements of the undertaking , including its direct lobbying activities , expenses , and political donations , as well as membership , affiliation or participation of the undertaking in organisations exercising lobbying activities , and funding of think tanks exercising lobbying activities;


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


### 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 gender , equality , diversity and inclusion policy applied in relation to the undertaking's administrative , management and supervisory bodies with regard to gender and other aspects such as , age , disability or educational and professional backgrounds , and the measures to prevent multiple discrimination , as well as 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 a proposal to incorporate it within a reasonable time limit.;


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process implemented with regard to sustainability matters , including a gender-responsive due diligence approach;


### (ii) the opportunities for the group related to sustainability matters; ### (ii) the opportunities and risks for the group related to sustainability matters;


### how the group’s strategy has been implemented with regard to sustainability matters; ### how sustainability matters and related targets , in connection with principal risks , opportunities , and severe impacts , have been integrated into the undertaking’s strategy;


### a description of the targets related to sustainability matters set by the group and of the progress of the undertaking towards achieving them; ### a description of the science-based and time-bound short-term , mid-term and long-term targets set by the group and of the progress of the undertaking towards achieving them to address the principal risks , opportunities and impacts of its activities with regards to sustainability matters , along with corresponding evidence;


### a description of the role of the administrative , management and supervisory bodies with regard to sustainability matters; ### a description of the composition and role of the administrative , management and supervisory bodies with regard to sustainability matters , including with regard to:


### a description of the group’s policies in relation to sustainability matters; ### a description of the group’s policies in relation to sustainability matters and in particular with respect to identified actual or potential severe impacts and opportunities;


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process implemented with regard to sustainability matters in line with applicable eu legislation on due diligence [directive xxx];


### (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 actual or potential adverse impacts connected with the group’s value chain as identified through the due diligence process , including its own operations , its products and services , its subsidiaries , its business relationships and its supply chain , including information on people affected by those impacts;


### (iii) any actions taken , and the result of such actions , to prevent , mitigate or remediate actual or potential adverse impacts; ### (iii) any actions taken , and the result of such actions , to identify , assess , prevent , mitigate , cease , monitor , communicate , account for , address and remediate actual or potential adverse impacts;


### 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. ### the information referred to in paragraphs 1 and 2 shall include all information about the group’s value chain , including its own operations , workforce , investments , assets , its products and services , its business relationships and its supply chain that is useful in order to understand the impacts and risks related to sustainability matters for the undertaking.


### 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 limited 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.


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


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


### 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 governing a subsidiary of an undertaking referred to in paragraph 1 may require that the consolidated management report of that parent undertaking 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 , and that any necessary translation into those languages is certified. ### the member state by which the parent undertaking 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 consolidated management report of a parent undertaking that is exempted from the obligations set out in paragraphs 1 to 4 shall contain all of the following information: ### the consolidated management report of a subsidiary of a parent undertaking subjected to the obligations set out in paragraphs 1 to 4 shall contain all of the following information:


### the fact that the undertaking is exempted from the obligations set out in paragraphs 1 to 4 of this article.; ### deleted


### a description of the targets related to sustainability matters set by the group and of the progress of the undertaking towards achieving them; ### a description of the science-based and time-bound short-term , mid-term and long-term targets set by the group to address the principal risks , opportunities and impacts of its activities with regards to sustainability matters , along with corresponding evidence and of the progress of the undertaking towards achieving them;


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


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process implemented with regard to sustainability matters in line with applicable union legislation on due diligence [directive xxx];


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


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


### 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 is governed may require that the consolidated management report of that parent undertaking 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.


### 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 and 19c , the commission shall guarantee the involvement of trade unions. it shall also include other relevant stakeholders and civil society organisations. it may take into consideration technical advice from efrag , provided such advice has been developed by an independent technical advisory body funded by the european union and financially independent from private stakeholders. the technical advice should be developed with proper due process , public oversight and transparency and with the expertise , direct and balanced participation of relevant stakeholders and trade unions in particular. the technical advice shall cover all sustainability matters outlined in articles 19a and 19b and is accompanied by analyses that balance the costs of reporting for undertakings of the technical advice on sustainability matters with the benefits for users and public policy goals


### 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 and 19c , the commission shall guarantee the involvement of trade unions. it shall also include other relevant stakeholders and civil society organisations. it may take into consideration technical advice from efrag , provided such advice has been developed by an independent technical advisory body funded by the union and financially independent from private stakeholders. the technical advice shall be developed with proper due process , public oversight and transparency and with the expertise , direct and balanced participation of relevant stakeholders and trade unions in particular. the technical advice shall cover all sustainability matters outlined in articles 19a and 19b and is accompanied by analyses that balance the costs of reporting for undertakings of the technical advice on sustainability matters with the benefits for users and public policy goals


### 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 prior to the adoption of the delegated acts referred to in articles 19b and 19c.


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


### (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 open data and machine-readable 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.


### (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 and sme growth 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.


### (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 , about its detailed plans to mitigate its own emissions , and about their resilience and plans to adapt 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.


### (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. 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 applicable to undertakings active in the extractive industry and the logging of forests should be consistent with reporting requirements of chapter 10 of directive 2013/34/eu and require sustainability disclosures to be made at project-level. project-level disclosures are crucial for investors who need consistent and detailed information to analyse the resilience and risks of specific projects with regard to climate change , environmental and social risks , or resource scarcity. project-level disclosure is equally crucial for communities affected by the extractive and logging industries and civil society organisations to understand and scrutinize the benefits of extractive and logging industries and their environmental , social and governance impacts. 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.


### 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 19a , 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.


### (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. ### deleted


### (52) article 33 of directive 2013/34/eu requires member states to ensure that the members of the administrative , management and supervisory bodies of an undertaking have collective responsibility for ensuring that the (consolidated) annual financial statements , the (consolidated) management report and the (consolidated) corporate governance statement are drawn up and published in accordance with the requirements of that directive. that collective responsibility should be extended to the digitalisation requirements laid down in delegated regulation (eu) 2019/815 , to the requirement to comply with union sustainability reporting standards and to the requirement to mark up sustainability reporting. ### (52) article 33 of directive 2013/34/eu requires member states to ensure that the members of the administrative , management and supervisory bodies of an undertaking have collective responsibility for ensuring that the (consolidated) annual financial statements , the (consolidated) management report and the (consolidated) corporate governance statement are drawn up and published in accordance with the requirements of that directive. that collective responsibility should be extended to the digitalisation requirements laid down in delegated regulation (eu) 2019/815 , to the requirement to comply with union sustainability reporting standards and to the requirement to mark up sustainability reporting and to publish in an open data format.


### (60) article 27 of directive 2006/43/ec sets out rules on the statutory audit of a group of undertakings. those rules should be extended to the assurance of consolidated sustainability reporting , where the statutory auditor performs the statutory audit. ### (60) article 27 of directive 2006/43/ec sets out rules on the statutory audit of a group of undertakings. those rules should be extended to the assurance of consolidated sustainability reporting.


### 1. stresses the valuable role played by union agencies in helping union institutions to implement policies , especially by carrying out specific technical , scientific and managerial tasks; appreciates the high quality work performed by the agencies working in the area of employment , social affairs and inclusion; ### 1. stresses the valuable role played by union agencies in helping union institutions to implement policies , especially by carrying out specific technical , scientific and managerial tasks; appreciates the high quality work performed by the agencies working in the area of employment , social affairs and inclusion; reiterates in this regard the need to equip the agencies at a level commensurate to the assigned tasks , with a sufficient number of staff , employed in a stable manner and having sufficient material resources; reiterates that the proper functioning of the executive agencies also requires a high-quality social dialogue , closely involving the local staff committees;


### 4. welcomes the deepened cooperation between the agencies within the framework of the european union agencies network (euan) with a focus on sharing services , knowledge and expertise; ### 4. welcomes the deepened cooperation between the agencies within the framework of the european union agencies network (euan) with a focus on sharing services , knowledge and expertise; calls for regular consultations between all agencies coordinated by the euan;


### 6. welcomes that agencies activated business continuity plans in good time to ensure the continuation of key governance processes and the well-being of staff during the covid-19 pandemic; expresses satisfaction that agencies rapidly adapted their work to the pandemic through accelerated digitalisation measures , collaborated better , and improved the way they exchanged information to remain operational. ### 6. welcomes that agencies activated business continuity plans in good time to ensure the continuation of key governance processes and the well-being of staff during the covid-19 pandemic; expresses satisfaction that agencies rapidly adapted their work to the pandemic through accelerated digitalisation measures , collaborated better , and improved the way they exchanged information to remain operational; recommends regular surveys on staff satisfaction with and evaluation of teleworking arrangements;


### 16. notes the court’s observation of excessive levels of carry-overs , in particular for acer , eu-lisa , the euratom supply agency (esa) , the fundamental rights agency (fra) and the european border and coastguard agency (frontex) , and the court’s recommendation that the agencies concerned should further improve their budget planning and implementation cycles; ### 16. notes with concern that the court evaluated the weaknesses in the budgetary management to be on the rise , with the court’s observation of excessive levels of carry-overs , in particular for acer , eu-lisa , the euratom supply agency (esa) , the fundamental rights agency (fra) and the european border and coastguard agency (frontex) , and the court’s recommendation that the agencies concerned should further improve their budget planning and implementation cycles;


### 24. notes that in 2020 at the level of senior management , a gender balance of 74 ,6 % men and 25 ,4 % women was reported , with a gender balance for staff overall at 52 ,7 % men and 47 ,3 % women; further notes that the gender balance reported for the management boards of the agencies was 63 ,4 % men and 36 ,6 % women; reiterates the ambition of the agencies to align with the commission to reach a gender balance of 50 % at all levels of its management by the end of 2024; ### 24. expresses its concern that in 2020 no gender balance was reached at any level , with a presence at the level of senior management of 74 ,6 % men and 25 ,4 % women , for staff overall of 52 ,7 % men and 47 ,3 % women and for the management boards of the agencies of 63 ,4 % men and 36 ,6 % women; reiterates the ambition of the agencies to align with the commission to reach a gender balance of 50 % at all levels of its management by the end of 2024;


### a. non-profit organisations (npos) are increasingly involved in economic activities and contribute to the rapid development of the social economy , bringing societal benefits in terms of citizens welfare , the fight against climate change , quality employment and the fight against social exclusion and discrimination; whereas the development of the social economy directly contributes to the strengthening of the single market; ### a. non-profit organisations (npos) are increasingly involved in economic activities and contribute to the rapid development of the social economy , bringing societal benefits in terms of citizens welfare , the fight against climate change , quality employment and the fight against social exclusion and discrimination; whereas the development of the social economy directly contributes to the wellbeing of the population;


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


### 2. highlights that the definition of common measures for npos will enable coherent judicial review at union level and lay down the foundations for future case law that will help strengthen union-wide standards; ### 2. highlights that the definition of common measures for npos will enable coherent judicial review at union level and lay down the foundations for future case law that will help strengthen the protection of fundamental rights which are an essential part of union law;


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


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


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


### 7. suggests that where relevant , the commission should complement the legislative acts called for in this report with guidelines to assist member states in their implementation; ### 7. suggests that the commission should complement the legislative acts called for in this report a proposal for an interinstitutional agreement on civil dialogue that should include guidelines on civil dialogue as well as a proposal for a participatory status for not for profit associations taking example from the council of europe and the united nations;


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


### 9. emphasises that national bodies designated for the oversight of npos must be legally distinct and functionally independent of their respective governments. ### 9. emphasises that national bodies designated for the registration of npos must be legally distinct and functionally independent of their respective governments; considers that any european legislation must provide for the same independency.


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


### 10. regrets that the commission and the member states have not brought forward legislation to harmonise the situation of associations and npos throughout the eu nor established a statute for a european association despite several attempts , and numerous calls by civil society; ### 10. regrets that the commission has not brought guidance to member states to facilitate cross-border funding of associations and to guarantee the freedom of association nor have the eu institutions established a statute for a european association despite several attempts , and numerous calls by civil society


### 11. considers that the definition at union level of minimum standards for npos to receive public benefit status should enable mutual recognition across member states and facilitate equal treatment in terms of benefits awarded; emphasises that donors to public benefit npos who received public benefit status in another member state should enjoy the same benefits as if they were donating to a domestic organisation; ### 11. considers that the proposal and complementary measures should enable mutual recognition across member states and facilitate equal treatment in awarded donations and access to donations as well as regards tax incentive measures inline with european court of justice rulings


### 11. considers that , as only certain associations and npos are operating in the social economy , the upcoming social economy action plan , while very much welcomed , needs to be complemented by separate legislative initiatives to cover all associations; ### 11. takes note of the upcoming social economy action plan and considers that in order to be fully effective it needs to be complemented by a european association statute and european benchmarks for associations and npos


### 12. suggests the use of carefully calibrated definitions to clarify the meaning of key concepts that otherwise risk remaining too vague and lead to uneven transposition. ### 12. suggests the use of carefully calibrated definitions to clarify the meaning of key concepts that otherwise risk remaining too vague and which are in compliance with union law. underlines the need for clarity on which types or associations will be covered and which ones will fall out of scope.


### 12. considers that , due to their particular character , the proposed legal instruments are to refrain from regulating political parties; furthermore , recalls that the union respects the status of churches , religious organisations or communities , as well as philosophical or non-confessional organisations under national law; underlines that this does not preclude organisations that only draw from a religious , philosophical or non-confessional inspiration such as faith-based charitable npos , from benefitting from the scope of these proposals; points out that trade unions in several member states are given a special beneficial status and should therefore be given a choice to make use of the provisions under the proposed instruments; ### 12. considers that , due to their particular character , the proposed legal instruments are to refrain from regulating political parties; furthermore , recalls that the union respects the status of churches , religious organisations or communities , as well as philosophical or non-confessional organisations under national law; underlines that this does not preclude organisations that only draw from a religious , philosophical or non-confessional inspiration such as faith-based charitable npos , from benefitting from the scope of these proposals; points out that trade unions in several member states are given a special beneficial status , they should therefore be excluded from the proposed instruments but however should be given a choice to make use of the provisions under the proposed instruments , if they so wish; points out to the fact that npos are likewise free to choose to make use of the provisions under the proposed regulation whereas for npos , the directive automatically applies;


### m. whereas any organisation benefiting from a european statute or from european common minimum standards should not act against the eu’s common values enshrined in the treaties and the charter of fundamental rights; ### m. whereas any organisation benefiting from a european statute or from european common minimum standards should act towards the promotion and the implementation the eu’s common values enshrined in the treaties and the charter of fundamental rights;


### 15. emphasizes that npos are instrumental for democracy and policy making at all levels; condemns attempts to depoliticise npos , such as by refusing or challenging their status as public benefit organisation where their activities are not meant to benefit one particular party; ### 15. emphasizes that npos are an essential instrument for democracy and policy making at all levels , for promoting and working for the public good , are part of the checks and balances for the rule of law , and a driver for civic engagement including of those that are furthest away from public participation;


### (5) associations play a key role in helping and encouraging individuals to actively participate in the democratic life of the union. ### (5) associations play a key role in encouraging and empowering individuals to actively participate in the democratic life of the union , particularly those that are furthest away facing exclusion and discrimination.


### (6) the union should provide associations , which are a form of organisation generally recognised in all member states , with an adequate legal instrument capable of fostering their transnational activities. ### (6) the union should provide associations , which are a form of organisation generally recognised in all member states , with an adequate legal instrument capable of fostering their transnational activities , as well as contributing to civil dialogue at eu level , through a participatory status.


### (11) the european economic interest grouping (eeig) , as provided for in regulation (eec) no 2137/856 , does allow certain activities to be carried out in common , while nevertheless preserving the independence of its members. however , the eeig does not meet the specific needs of civil society associations. ### (11) the european economic interest grouping (eeig) , as provided for in regulation (eec) no 2137/856 , does allow certain activities to be carried out in common , while nevertheless preserving the independence of its members. however , the eeig does not meet the specific needs of civil society associations and does not provide for legal personality separate from its members.


### (12) it is therefore necessary to establish at union level appropriate and rules which will permit the creation of european associations. ### (12) it is therefore necessary to establish at union level appropriate and rules which will permit the creation of european associations a european association with own legal personality.


### 2. a european association shall be an independent and self-governed cross-border entity established on a permanent basis within the territory of the union by voluntary agreement between natural or legal persons for a common non-profit purpose. ### 2. a european association shall be an independent and self-governed cross-border and non-profit entity established on a permanent basis within the territory of the union by voluntary agreement between natural persons or legal non-profit entities.


### 1. ‘non-profit’ means that it is not the primary aim of the association to generate a profit , while it may still exercise economic activities. where profit is generated , it is invested in the organisation for the pursuit of its objectives , and not distributed among members , founders or any other private parties. the granting of public benefit status pursuant to article 21 is not a necessary condition to establish the non-profit nature of an association. however , where public benefit status is granted , the purpose of the association shall be regarded as non-profit; ### 1. ‘non-profit’ means that it is not the primary aim of the association and of its members to generate a profit , while it may still exercise economic activities. where profit is generated , it is invested in the organisation for the pursuit of its objectives , and not distributed among members , founders or any other private parties. the granting of public benefit status pursuant to article 21 is not a necessary condition to establish the non-profit nature of an association. however , where public benefit status is granted , the purpose of the association shall be regarded as non-profit;


### 2. ‘independent’ means free from any undue state interference and not part of a government or administrative structure. in this respect , receiving governmental funding shall not preclude an association from being deemed independent , as long as the autonomy of the association’s functioning and decision making is not affected by such funding; ### 2. ‘independent’ means free from any undue state interference and not part of a government or administrative structure , as well as from business. in this respect , receiving governmental funding shall not preclude an association from being deemed independent , as long as the autonomy of the association’s functioning and decision making is not affected by such funding;


### 5. ‘cross-border’ means that the association pursues the objective of transnational cooperation or cooperation across borders within the european union , or that its founding members come from more than one member state; ### 5. ‘cross-border’ means that the association pursues the objective of transnational cooperation or cooperation across borders within the european union , or that its founding members come from at least 3 member states if they are legal entities or from at least 20 if they are natural persons;


### national supervisory authority ### national registration body


### 1. member states shall designate an independent public authority (the ‘supervisory authority’) to be responsible for monitoring the application of this regulation in order to protect the fundamental rights and freedoms of european associations while acting across borders. ### 1. member states shall designate an independent public authority (the ‘registration body’) to be responsible for monitoring the application of this regulation throughout the union in full compliance with the fundamental rights and freedoms of european associations while acting across borders.


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


### by agreement of at least three founding members; the founding members can be natural persons that are citizens or residents of at least two member states , or legal persons that have their registered office in at least two member states; or ### by at least three legal non-profit entities registered in at least three member states; or by at least twenty natural persons that are citizens or residents in at least three member states;


### as the result of a conversion into a european association of an existing entity formed under the law of a member state and which has its registered office within the union; or ### as the result of a conversion into a european association of an existing entity that meets the same conditions as in paragraph a) formed under the law of a member state and which has its registered office within the union; or


### as the result of a merger between at least two entities belonging to the categories identified pursuant to article 3(2) of this regulation , formed under the laws of member states and which have their registered office within the union , provided that at least two of them are governed by the law of different member states. ### as the result of a merger between at least three entities belonging to the categories identified pursuant to article 3(2) of this regulation , formed under the laws of member states and which have their registered office within the union , provided that at least three of them are governed by the law of different member states.


### 4. the departure of a founding member from a european association shall not automatically lead to the european association being terminated or dissolved , provided that it continues to carry out its activities based on the agreement of at least the number of persons referred to in paragraph 1. ### deleted


### 2. mandatory membership fees shall be adjusted to take into account the average income in the member state of residence of the member. ### 2. members shall pay an annual membership fee decided by the general assembly.


### a precise statement of the european association’s objectives; ### a precise statement of the european association’s objectives and its non-profit nature;


### provisions governing the appointment to and removal of members from the board of directors , the conditions for the initiation of proceedings against members of the board of directors on behalf of the european association , as well as the board’s functioning , powers and responsibilities , including powers of representation in dealings with third parties; ### provisions governing the composition and election procedures of the board of directors , as well as the board’s functioning , powers and responsibilities , including powers of representation in dealings with third parties;


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


### 3. member states shall designate or establish an authority (the ‘registering authority’) competent for processing applications for registration of european associations that have their registered office in its territory in accordance with this article. member states may decide that the registering authority is to be the same as the supervisory authority referred to in article 4 of this regulation. ### deleted


### 5. upon receipt of an application for the granting of public benefit status from a european association , the registering authority shall assess the application in relation to the requirements laid down in this regulation. the registering authority shall not impose any requirements other than those laid down in this regulation. ### deleted


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


### 7. the european associations authority shall , within 15 calendar days of receipt of the opinion of the national registering authority , adopt a binding decision on the application. that period may be extended by 15 days in duly motivated cases , where the assessment of the application requires further examination. ### deleted


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


### 9. the european associations authority shall ensure that the publication of the registration in the digital e-registry of european associations as well as in the official journal of the european union takes place no later than 15 days after the decision has become final. ### 9. the european registration body shall ensure that the publication of the registration in the digital e-registry of european associations as well as in the official journal of the european union takes place no later than 15 days after the receipt of the information.


### 3. the annual accounts of the european associations , and , where applicable , their consolidated accounts , shall be audited pursuant to the provisions applicable to the legal entities identified pursuant to article 3(2) of this regulation in the member state in which the european association has its registered office. the audit shall be carried out at least once every four years and no more than once every two years. ### deleted


### 4. the report resulting from the audit referred to in paragraph 3 shall be disclosed in the manner provided for by the law of the member state in which the european association has its registered office. where european associations are not subject , under the law of the member state in which the european association has its registered office , to a disclosure requirement , they shall at least make the accounting documents available to the public at its registered office. ### deleted


### 5. european associations shall not be required to disclose information on their members , in particular with regards to the objectives and activities of the association. disclosing information on members shall not be required unless necessary for the purpose of a criminal investigation concerning criminal offences punishable by a custodial sentence of a maximum of at least one year. ### deleted


### 6. the report resulting from the audit referred to in paragraph 3 shall be transmitted by the competent authority to the european associations authority without delay. upon notification , the european associations authority shall provide for the publication of the report in the official journal of the european union as well as in the digital e-registry of the european union. ### deleted


### 7. rules on accounting and auditing applicable to european associations shall not be less favourable than those applicable to undertakings in application of directive 2006/43/ec8 or directive 2013/34/eu of the european parliament and of the council9 . ### deleted


### article 24 ### deleted


### 1. a european association may be dissolved by binding decision of the european associations authority , taken on its own initiative or at the request of the supervisory authority of the member state in which the european association has its registered office , if: ### 1. a european association may be dissolved or at the request of the supervisory authority of the member state in which the european association has its registered office , if:


### 2. for the purposes of paragraph 1 , the supervisory authority shall communicate a reasoned opinion concerning the european association’s dissolution to the european associations authority. the european associations authority shall , within 30 calendar days of receipt of the opinion of the supervisory authority , adopt a binding decision on the european association’s dissolution. that period may be extended by 30 days in duly motivated cases , where the assessment of the application requires such an extension. ### deleted


### 3. where a decision on dissolution is taken pursuant to point (a) or (b) of paragraph 1 , the european associations authority shall grant the european association a reasonable period of time to regularise its position before the decision takes effect. ### 3. where a decision on dissolution is taken pursuant to point (a) or (b) of paragraph 1 , the european association should be granted a reasonable period of time to regularise its position before the decision takes effect.


### 4. applicants may request the european associations authority to review its decision ordering the dissolution of the european association within 30 calendar days of the decision having been communicated to them. ### 4. applicants may request to review its decision ordering the dissolution of the european association within 30 calendar days of the decision having been communicated to them. national legal appeal procedures will apply.


### 5. the european associations authority shall reflect the decision to dissolve the european association in the digital e-registry of european associations and publish it in the official journal of the european union no later than 15 days after the decision has become final. ### 5. the european associations registration body shall reflect the decision to dissolve the european association in the digital e-registry of european associations and publish it in the official journal of the european union no later than 15 days after the decision has become final