### 9. insists that an effective measure to tackle the non-take-up problem is to proactively grant support under such schemes to those in need , without the recipient having to request it; calls on social services and public administrations to proactively identify those in need and notify them of their right to receive a minimum income , as well as assisting them in the application process to ensure that benefits are granted smoothly; ### 9. insists that an effective measure to tackle the non-take-up problem is to proactively grant support under such schemes to those in need , without the recipient having to request it; calls on social services and public administrations to proactively identify those in need and giving them access to a minimum income , as well as assisting them in the application process to ensure that benefits are granted smoothly;


### 11. calls on member states to remove any negative punitive conditionalities , such as cuts or forced acceptance of poor-quality jobs; ### 11. calls on member states to avoid or remove any negative punitive conditionalities , such as cutting the pre-defined level of subsistence or promoting forced acceptance of poor-quality jobs; the key benchmark of mis should be encouragement and social participation;


### 11. calls on member states to remove any negative punitive conditionalities , such as cuts or forced acceptance of poor-quality jobs; ### 11. calls on member states to remove any blackmail , including by setting a maximum number of times a job seeker can refuse an offer , and negative punitive conditionalities , such as cuts or forced acceptance of poor-quality jobs;


### 13. calls on the commission and the member states to involve social partners and civil society organisations in the development , implementation and monitoring of mis , with a view to reforming coverage , accessibility , adequacy and the promotion of participation across the policies and benefits of social protection systems; calls for an increase in the number of adequately trained social workers at national and regional level to enable them to work in optimal conditions to provide personalised assistance for vulnerable people; ### 13. calls on the commission and the member states to involve social partners , civil society organisations and people experiencing poverty and/or their representatives in the development , implementation and monitoring of mis , with a view to enhancing coverage , availability , affordability , accessibility , adequacy and the promotion of participation across the policies and benefits of social protection systems; calls for an increase in the number of adequately trained social workers at national and regional level to enable them to work in optimal conditions to provide personalised assistance for vulnerable people; calls on the council and the member states to report and adopt an evaluation period no longer than 5 years after the implementation in order to evaluate its impact on reduction of poverty and social exclusion , increasing employment levels and improving participation in training.


### 15. believes that to ensure a life in dignity and guarantee essential human and social rights , mis must enable those who can work to (re)integrate into sustainable , decent and quality employment; stresses that those who cannot work must be given the opportunity to contribute to society through non-economic means , such as education , training and volunteering , and civic participation; ### 15. believes that to ensure a life in dignity and guarantee essential human and social rights , mis must enable those who can work to (re)integrate into sustainable , decent and quality employment; stresses that those who cannot work must be given the opportunity to contribute to society through non-economic means , such as education , training and civic participation; the necessary labour market measures and social services should be based on the individual needs of the recipients;


### a. whereas the covid-19 pandemic has had a devastating effect on the labour and social status of young people in europe , with employment rates falling , a considerable decrease in personal income12 and a higher risk of poverty and exclusion; whereas immediate action is needed to secure the future of young people; ### a. whereas the covid-19 pandemic has had a devastating effect on the labour , employment , social situation of young people in europe , and had increased youth precariousness , with employment rates falling , a considerable decrease in personal income and a higher risk of poverty and exclusion; whereas immediate action is needed to secure and improve the future of young people; whereas the youth unemployment rate stands at 17 ,1% , three times higher than the general unemployment rates; whereas rates of non-standard work are very high among young people , with 32 ,9% of young people in temporary work across the eu , with non-standard work providing less job security and limited access to social protection , making young people more likely to be made unemployed during and after a crisis such as covid-19;


### b. whereas young people are the basis for sustainable economic and social prosperity for europe and are a key priority for the eu as affirmed by the european youth strategy and the european youth guarantee , and therefore warrant priority measures for their protection , guidance and inclusion; ### b. whereas sustainability and social prosperity are the basis to insure a stable , secure and quality future for young people in europe; whereas young people should be a key priority for the eu as affirmed by the european youth strategy and the european youth guarantee , and therefore warrant priority measures for their protection , guidance and inclusion;


### c. whereas in september 2021 , president von der leyen announced a proposal to designate 2022 the eyy to reflect on the perspectives of young people in europe and to focus on policy and legislative proposals that create opportunities for young people across the eu; ### c. whereas in september 2021 , president von der leyen announced a proposal to designate 2022 the eyy to reflect on the perspectives of young people in europe and to focus on policy and legislative proposals that create opportunities for young people across the eu; whereas this proposal should not only be an exercise in communication but provide genuine and efficient impetus to improve the working conditions of young people in the european union;


### e. whereas the centrepiece of the nextgenerationeu , the recovery and resilience facility (rrf) , constitutes a historic eu instrument to help member states mitigate the economic and social impact of covid-19 through reforms and investments in six pillars , one of which is dedicated to reforms and investments in children and young people; ### e. whereas the centrepiece of the nextgenerationeu , the recovery and resilience facility (rrf) , constitutes a eu instrument to help member states mitigate the economic and social impact of covid-19 through reforms and investments in six pillars , one of which is dedicated to reforms and investments in children and young people;


### f. whereas the labour and social inclusion of young people refers to their access to adequate housing and nutrition , proper healthcare and prevention services , programmes for skills development , job opportunities and lifelong learning; ### f. whereas the labour and social inclusion of young people refers to their access to quality , stable and well remunerated employment , to decent and affordable housing and nutrition , proper and free healthcare and prevention services , allowing them to start their adult life with confidence;


### g. whereas investments in young people , particularly social impact investments , are known to produce effective returns on the funds invested , and therefore new tools and new mechanisms are needed; ### g. whereas investments in young people are known to have a positive impact on the employment and participation of young people into the society , and therefore existing tools and existing mechanisms have to be genuinely implemented as much as new tools and new mechanisms are needed;


### h. whereas existing programmes such as the youth employment support , the european youth dialogue and the european solidarity corps , and new proposals such as aim , learn , master , achieve (alma) , will tackle youth challenges in 2022; ### h. whereas existing programmes such as the youth employment support , the european youth dialogue and the european solidarity corps , and new proposals such as aim , learn , master , achieve (alma) , will not tackle youth challenges in 2022 if they do not manage to reach the targeted young people and if they do not ensure that young people are paid for their work; whereas the european commission should not legitimate the precarisation of young people;


### i. whereas the constant development of new horizontal skills among young people , such as digital skills , as well as the development of skills with huge economic potential , such as green or entrepreneurial skills , is key for a healthy european labour market; ### i. whereas the constant development of new horizontal skills among young people , such as digital skills , as well as the development of skills with huge economic potential , such as green or entrepreneurial skills , is key for a healthy european labour market; whereas every young european should be able to find quality employment corresponding to his or her competences , trainings or studies;


### j. whereas young people’s engagement in social entrepreneurship is key for creating new solutions; whereas the involvement of private actors , companies and the business sector is needed to link the labour market with the skills sector; ### j. whereas young people’s engagement in social entrepreneurship could be key for creating new solutions; whereas the involvement of private actors , companies and the business sector in quality and long term employments with decent remuneration for young people is needed;


### k. whereas discrimination against young people in general remains an issue in europe , with young women , and young people with disabilities or different ethnic backgrounds being at a much higher risk of unemployment , in-work poverty and social exclusion; ### k. whereas discrimination against young people in general remains an issue in europe , with young people discriminated on the basis of their gender , ethnic background , sexual orientation , or disability being at a much higher risk of unemployment , in-work poverty and social exclusion;


### l. whereas young people in europe and their representatives and organisations are active in producing policy recommendations with solutions for improving labour and social inclusion and must be considered essential partners in the implementation of the eyy and beyond; ### l. whereas young people in europe and their representatives and organisations , as well as trade unions , are active in producing policy recommendations with solutions for improving labour and social inclusion including through their engagement as part of the conference on the future of europe and must be considered essential partners in the co-creation , implementation and evaluation of the eyy and beyond;


### 1. welcomes the fact that president von der leyen designated 2022 as the eyy; considers that 2022 should bring a revamp of the european youth strategy through ambitious new policy proposals to combat the effects of covid-19 on young people in europe; ### 1. welcomes the fact that president von der leyen designated 2022 as the eyy; considers that this announcement should not be an exercise in communication but that 2022 should provide a real impetus to the implementation of the european youth strategy through the ambitious and genuine application of existing tools and mechanism like the reinforced youth guarantee as much as new policy proposals to combat the effects of covid-19 on young people in europe;


### 3. stresses the vital role that young people must play in shaping employment and social policies in europe; welcomes the eu youth dialogue and the youth work that brings the eu closer to young people; encourages the promotion of the co-management principle in the development of youth policies; calls on the commission to recognise the positive impact of the third sector , including youth organisations , and the non-formal and informal learning opportunities that they provide through volunteering opportunities; ### 3. stresses the vital role that young people must play in shaping employment and social policies in europe; welcomes the eu youth dialogue and the youth work that brings the eu closer to young people provided that they are followed by actions; encourages the promotion of the co-management principle with young people , youth representatives and trade unions in the development of youth policies; calls on the commission to recognise the positive impact of the third sector , including youth organisations , and the non-formal and informal learning opportunities that they provide through volunteering opportunities; not institutionalize and legitimate youth precariousness , in particular through atypical status leading to extremely low wages , lack of social protection , of employment security , to false self-employment and to precarious jobs substituting real salaried employment;


### 4. calls on the commission and council to mobilise the necessary funding under the multiannual financial framework 2021-2027 without prejudice to the programmes already established under the esf+ , following structural problems identified in country-specific recommendations related to youth unemployment and poverty; welcomes , in this respect , the overall allocation under the rrf of eur 45 billion for measures dedicated to children and young people; ### 4. calls on the commission and council to mobilise the necessary funding under the multiannual financial framework 2021-2027 without prejudice to the programmes already established under the esf+ , following structural problems related to youth unemployment and poverty; takes note , in this respect , of the overall allocation under the rrf of eur 45 billion for measures dedicated to children and young people;


### 5. calls on the member states to ensure complementarity between measures under the rrf , other eu programmes and national budget allocations; recalls the opportunity provided by the investeu social investment and skills window to generate social impact investments; encourages the use of social impact bonds and social outcome contracts aimed at young people while also involving the private sector; ### 5. calls on the member states to ensure complementarity between measures under the rrf , other eu programmes and national budget allocations; calls on the european commission to monitor investment and spending on youth priorities within the next generation eu , rrf and esf+; recalls the opportunity provided by the investeu social investment and skills window to generate social impact investments; encourages the use of social impact bonds and social outcome contracts aimed at young people while also involving the private sector;


### 6. calls for reinforced measures , through the esf+ , to promote employment through active interventions for labour market integration and the creation of sustainable entry-level positions; calls on the member states to present updated implementation plans for a reinforced youth guarantee; calls on the commission to provide incentives for companies to play an active role in the reinforced youth guarantee; ### 6. calls for reinforced measures , through the esf+ , to promote employment through active interventions for labour market integration and the creation of sustainable , quality and well remunerated entry-level positions; calls on the commission to request updated implementation plans from member states for a reinforced youth guarantee; calls on the commission and member states to introduce a framework with clear and binding quality standards for offers provided under the youth guarantee to promote positive and sustainable outcomes for young people and to condition hiring incentive to this framework;


### 7. invites the commission to set up a permanent eu committee for the implementation of the reinforced youth guarantee , bringing together relevant stakeholders to facilitate coordination and the exchange of best practices between eu and national authorities , together with civic partners and youth organisations; ### 7. recalls that partnerships with stakeholders are a key element of policies regarding youth in general and for the reinforced youth guarantee in particular , but no formal body or mechanism currently exists at eu level for their participation in the monitoring and implementation of the youth guarantee ; invites the commission to set up a permanent eu committee for the implementation of the reinforced youth guarantee , bringing together youth representatives and trade unions to facilitate coordination and the exchange of best practices with the eu and national authorities;


### 8. calls on the member states to ensure that public employment services (pes) work with local authorities and the private sector through the european pes network to promote quality employment and boost tailor-made support for training , job searching and counselling for young people; ### 8. calls on the member states to ensure that public employment services (pes) work with local authorities and the private sector through the european pes network to promote quality , stable and well-remunerated employment and boost tailor-made support for training , job searching and counselling for young people;


### 9. calls on the member states to facilitate access for young people to paid traineeships and apprenticeships; calls for the reinforcement of monitoring schemes , ensuring that young people receive adequate and quality opportunities for upskilling and new qualifications or credentials , avoiding unfair practices such as exploitative or unpaid internships; ### 9. calls on the member states to facilitate access for young people to paid traineeships and apprenticeships; calls for the reinforcement of monitoring schemes , ensuring that young people receive adequate and quality first working experience for upskilling and new qualifications or credentials , avoiding unfair practices such as exploitative or unpaid internships; condemns the practice of unpaid traineeships and calls on the european commission to propose a legal instrument to ensure fair remuneration for traineeships;


### 10. calls on the commission to ensure that the new alma initiative assists young people , in particular young people aged 15 to 19 not in employment , education or training (neets) , in finding temporary work experience in another member state and to ensure that virtual learning and cooperation remain combined with physical mobility under esf+; ### 10. calls on the commission to ensure that the new alma initiative assists young people , in particular young people not in employment , education or training (neets) , in finding temporary quality work experience in another member state; insists that alma programme must comply with quality standards that uphold young people’s labour rights such as decent remuneration , good working conditions and access to social protection;


### 11. underlines that digital skills are essential for all industries and invites the commission to develop permanent , certified and free access for young people to online courses for digital skills and literacy in all eu languages in partnership with private companies; calls for the creation of exchange spaces on e-learning and e-teaching; insists that the eu and the member states develop more programmes such as etwinning and the electronic platform for adult learning in europe; ### 11. underlines that digital skills are essential for all industries and invites the commission to develop permanent , certified and free access for young people to online courses for digital and professional skills and literacy in all eu languages in partnership with public entities and private companies; calls for the creation of exchange spaces on e-learning and e-teaching; insists that the eu and the member states develop more programmes such as etwinning and the electronic platform for adult learning in europe;


### 12. stresses the importance of creating incentives for green skills development and employment opportunities in a climate-neutral , energy efficient and circular economy , especially in the regions most impacted by the green transition; ### 12. stresses the importance of creating incentives for green skills development and quality employment opportunities in a climate-neutral , energy efficient and circular economy , especially in the regions most impacted by the green transition;


### 13. invites the commission to propose new tools aimed at developing youth entrepreneurship and youth social investment in 2022 and welcomes the proposed youth entrepreneurship policy academy , to be developed together with the organisation for economic co-operation and development as part of the action plan for social economy; ### 13. invites the commission to propose new tools aimed at developing youth's professional skills and youth social investment in 2022 and welcomes the proposed youth entrepreneurship policy academy , to be developed together with the organisation for economic co-operation and development as part of the action plan for social economy;


### 14. deplores the insufficient correlation between reforms and investments in education and training with measures that ensure labour market inclusion for young people , particularly neets; encourages flexible , inclusive , accessible and open learning paths through individual learning accounts and micro-credentials for young people , youth workers , trainers and professionals; ### 14. deplores the insufficient financial and human resources and investments in education and training with measures that ensure labour market inclusion for young people , particularly neets; encourages flexible , inclusive , accessible and open learning paths through individual learning accounts and micro-credentials for young people , youth workers , trainers and professionals; recalls that the reduction of youth employment will be achieved above all by the creation of quality , stable and well-remunerated jobs;


### 16. calls on the commission and council to ensure that traineeships , apprenticeships and job placements count as work experience and consequently grant access to social entitlements; calls for a decrease in the minimum period of contributions needed to access social benefits; ### 16. calls on the commission and council to ensure that traineeships , apprenticeships and job placements count as work experience and consequently grant access to a remuneration and social entitlements; calls for a decrease in the minimum period of contributions needed to access social benefits and for the ban of all age-based discriminations;


### 18. recalls the fact that young women are at increased risk of workplace discrimination13 , unemployment , being single-parent families and being long-term caregivers , which often excludes them from the workforce or keeps them below the poverty line; recommends that the council and commission include dedicated targets for assistance and tailored aid schemes for young women at risk in all initiatives from 2022 onwards; calls on the commission to work with the member states to integrate child guarantee national action plans with labour integration measures at national level to support young single parents; ### 18. recalls the fact that young women are at increased risk of workplace discrimination , worsened by intersectional inequalities and discriminations especially regarding their ethnic background , sexual orientation , disabilities , by the fact they are unemployed , single-parents , long-term caregivers , by the glass ceiling , the non-recognition of skills considered as feminine etc. , which often excludes them from the workforce as well as keeping them below the poverty line; recommends that the council and commission mainstream the gender perspective in all their policies and include dedicated targets for assistance and tailored aid schemes for young women at risk in all initiatives from 2022 onwards; calls on the commission to work with the member states to integrate child guarantee national action plans with labour integration measures at national level to support young single parents;


### 19. reiterates the importance of access to housing and tailored social services for vulnerable young people; asks the commission to work with the member states on housing first for youth programmes complemented by employment , social and health support services; stresses the importance of private and public investment in social infrastructure for young people; ### 19. reiterates the importance of access to decent and affordable housing and tailored public services for young people; asks the commission to work with the member states on housing first for all and on the inclusion of housing first in youth programmes complemented by quality and free employment , social and free health support services; stresses the importance adequate financial and human resources and investment in social infrastructure for young people;


### 20. notes with concern the worsening of conditions for many vulnerable young people already suffering from precarity and social exclusion such as young roma , young people with disabilities and young migrants; ### 20. notes with concern the worsening of conditions for many vulnerable young people already suffering from precarity and social exclusion such as young roma , young people with disabilities , young lgbtiq+ people and young migrants; calls on member states to prioritise outreach to vulnerable groups in the framework of the youth guarantee , esf+ and the recovery and resilience facility;


### (8) the ultimate beneficiaries of better sustainability reporting by undertakings are individual citizens and savers. savers who want to invest sustainably will have the opportunity to do so , while all citizens should benefit from a stable , sustainable and inclusive economic system. to realise these benefits , the sustainability information disclosed in undertaking’s annual reports first has to reach two primary groups (‘users’). the first group of users consists of investors , including asset managers , who want to better understand the risks and opportunities that sustainability issues pose to their investments and the impacts of those investments on people and the environment. the second group of users consists of organisations , including non-governmental organisations and social partners , that wish to better hold undertakings to account for their impacts on people and the environment. other stakeholders may also make use of sustainability information disclosed in annual reports. the business partners of undertakings , including customers , may rely on this information to understand , and where necessary report on , the sustainability risks and impacts through their own value chains. policy makers and environmental agencies may use such information , in particular on an aggregate basis , to monitor environmental and social trends , to contribute to environmental accounts , and to inform public policy. few individual citizens and consumers directly consult undertaking’s reports , but they may use such information indirectly such as when considering the advice or opinions of financial advisers or non-governmental organisations. many investors and asset managers purchase sustainability information from third party data providers , who collect information from various sources , including public corporate reports. ### (8) the ultimate beneficiaries of better sustainability reporting by undertakings are public authorities , trade union , workers and their representatives , individual citizens and savers. policy makers and public authorities need this information in order to design and implement public policies , and in particular to protect people's rights and the environment , to hold undertakings accountable for their impacts and to conduct a just social and environmental transition. trade unions , workers and their representatives need this information in order to be adequately informed about their company's activities and to be able to better engage in social dialogue. savers who want to invest sustainably will have the opportunity to do so , while all citizens should benefit from a stable , sustainable and inclusive economic system. to realise these benefits , the sustainability information disclosed in undertaking’s annual reports first has to reach three primary groups (‘users’). the first group of users consists of policy makers and public authorities. the second group of users consists of investors , including asset managers , who want to better understand the risks and opportunities that sustainability issues pose to their investments and the impacts of those investments on people and the environment. the third group of users consists of organisations , including non-governmental organisations and social partners , that wish to better hold undertakings to account for their impacts on people and the environment. other stakeholders may also make use of sustainability information disclosed in annual reports. the business partners of undertakings , including customers , may rely on this information to understand , and where necessary report on , the sustainability risks and impacts through their own value chains. policy makers and environmental agencies may also use such information , in particular on an aggregate basis , to monitor environmental and social trends , to contribute to environmental accounts , and to inform public policy. few individual citizens and consumers directly consult undertaking’s reports , but they may use such information indirectly such as when considering the advice or opinions of financial advisers or non-governmental organisations. many investors and asset managers purchase sustainability information from third party data providers , who collect information from various sources , including public corporate reports.


### (8) the ultimate beneficiaries of better sustainability reporting by undertakings are individual citizens and savers. savers who want to invest sustainably will have the opportunity to do so , while all citizens should benefit from a stable , sustainable and inclusive economic system. to realise these benefits , the sustainability information disclosed in undertaking’s annual reports first has to reach two primary groups (‘users’). the first group of users consists of investors , including asset managers , who want to better understand the risks and opportunities that sustainability issues pose to their investments and the impacts of those investments on people and the environment. the second group of users consists of organisations , including non-governmental organisations and social partners , that wish to better hold undertakings to account for their impacts on people and the environment. other stakeholders may also make use of sustainability information disclosed in annual reports. the business partners of undertakings , including customers , may rely on this information to understand , and where necessary report on , the sustainability risks and impacts through their own value chains. policy makers and environmental agencies may use such information , in particular on an aggregate basis , to monitor environmental and social trends , to contribute to environmental accounts , and to inform public policy. few individual citizens and consumers directly consult undertaking’s reports , but they may use such information indirectly such as when considering the advice or opinions of financial advisers or non-governmental organisations. many investors and asset managers purchase sustainability information from third party data providers , who collect information from various sources , including public corporate reports. ### (8) the ultimate beneficiaries of better sustainability reporting by undertakings are public authorities , individual citizens and savers. policy makers and public authorities need this information in order to design and implement public policies , and in particular to protect people’s rights and the environment , to hold undertakings accountable for their impacts and to conduct a just social and environmental transition. savers who want to invest sustainably will have the opportunity to do so , while all citizens should benefit from a stable , sustainable and inclusive economic system. to realise these benefits , the sustainability information disclosed in undertaking’s annual reports first has to reach three primary groups (‘users’). the first group of users consists of policy makers and public authorities. the second group of users consists of investors , including asset managers , who want to better understand the risks and opportunities that sustainability issues pose to their investments and the impacts of those investments on people and the environment. the third group of users consists of organisations , including non-governmental organisations and social partners , that wish to better hold undertakings to account for their impacts on people and the environment. other stakeholders may also make use of sustainability information disclosed in annual reports. the business partners of undertakings , including customers , may rely on this information to understand , and where necessary report on , the sustainability risks and impacts through their own value chains. policy makers and environmental agencies may use such information , in particular on an aggregate basis , to monitor environmental and social trends , to contribute to environmental accounts , and to inform public policy. few individual citizens and consumers directly consult undertaking’s reports , but they may use such information indirectly such as when considering the advice or opinions of financial advisers or non-governmental organisations. many investors and asset managers purchase sustainability information from third party data providers , who collect information from various sources , including public corporate reports.


### (15) articles 19a and 29a of directive 2013/34/eu apply to large undertakings that are public-interest entities with an average number of employees in excess of 500 , and to public-interest entities that are parent undertakings of a large group with an average number of employees in excess of 500 on a consolidated basis , respectively. in view of the growth of users’ needs for sustainability information , additional categories of undertakings should be required to report such information. it is therefore appropriate to require all large undertakings and all undertakings listed on regulated markets , except micro undertakings , to report detailed sustainability information. in addition , all undertakings that are parent undertakings of large groups should prepare sustainability reporting at group level. ### (15) articles 19a and 29a of directive 2013/34/eu apply to large undertakings that are public-interest entities with an average number of employees in excess of 500 , and to public-interest entities that are parent undertakings of a large group with an average number of employees in excess of 500 on a consolidated basis , respectively. in view of the growth of users’ needs for sustainability information , additional categories of undertakings should be required to report such information. it is therefore appropriate to require all large undertakings , all public interest entities , all small and medium sized undertakings operating in high-risk sectors or high risk-areas and all undertakings listed on regulated markets , except micro undertakings , to report detailed sustainability information. in addition , all undertakings that are parent undertakings of large groups should prepare sustainability reporting at group level. undertakings that are not established in the european union but fulfil those criteria and operate in the single market should be subjected to the same requirements in order to account for their sustainability impacts and to provide a level playing field for undertakings established in the eu.


### (15) articles 19a and 29a of directive 2013/34/eu apply to large undertakings that are public-interest entities with an average number of employees in excess of 500 , and to public-interest entities that are parent undertakings of a large group with an average number of employees in excess of 500 on a consolidated basis , respectively. in view of the growth of users’ needs for sustainability information , additional categories of undertakings should be required to report such information. it is therefore appropriate to require all large undertakings and all undertakings listed on regulated markets , except micro undertakings , to report detailed sustainability information. in addition , all undertakings that are parent undertakings of large groups should prepare sustainability reporting at group level. ### (15) articles 19a and 29a of directive 2013/34/eu apply to large undertakings that are public-interest entities with an average number of employees in excess of 500 , and to public-interest entities that are parent undertakings of a large group with an average number of employees in excess of 500 on a consolidated basis , respectively. in view of the growth of users’ needs for sustainability information , additional categories of undertakings should be required to report such information. it is therefore appropriate to require all large undertakings , all public interest entities , all small and medium sized undertakings operating in high-risk sectors or high risk-areas and all undertakings listed on regulated markets to report detailed sustainability information. in addition , all undertakings that are parent undertakings of large groups should prepare sustainability reporting at group level. undertakings that are not established in the european union but fulfil those criteria and operate in the single market should be subjected to the same requirements in order to account for their sustainability impacts and to provide a level playing field for undertakings established in the eu.


### (15) articles 19a and 29a of directive 2013/34/eu apply to large undertakings that are public-interest entities with an average number of employees in excess of 500 , and to public-interest entities that are parent undertakings of a large group with an average number of employees in excess of 500 on a consolidated basis , respectively. in view of the growth of users’ needs for sustainability information , additional categories of undertakings should be required to report such information. it is therefore appropriate to require all large undertakings and all undertakings listed on regulated markets , except micro undertakings , to report detailed sustainability information. in addition , all undertakings that are parent undertakings of large groups should prepare sustainability reporting at group level. ### (15) articles 19a and 29a of directive 2013/34/eu apply to large undertakings that are public-interest entities with an average number of employees in excess of 500 , and to public-interest entities that are parent undertakings of a large group with an average number of employees in excess of 500 on a consolidated basis , respectively. in view of the growth of users’ needs for sustainability information , additional categories of undertakings should be required to report such information. it is therefore appropriate to require all large undertakings , all public interest entities , all small and medium sized undertakings operating in high-risk sectors or high risk-areas and all undertakings listed on regulated markets , to report detailed sustainability information. in addition , all undertakings that are parent undertakings of large groups should prepare sustainability reporting at group level. undertakings that are not established in the union but fulfil those criteria and operate in the single market should be subjected to the same requirements in order to account for their sustainability impacts and to provide a level playing field for undertakings established in the union.


### (18) considering the growing relevance of sustainability-related risks and taking into account that small and medium-sized enterprises (smes) listed on regulated markets comprise a significant proportion of all listed undertakings in the union , in order to ensure investor protection it is appropriate to require that also those smes disclose information on sustainability matters. the introduction of this requirement will help to ensure that financial market participants can include smaller listed undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. it will therefore help to protect and enhance the access of smaller listed undertakings to financial capital , and avoid discrimination against such undertakings on the part of financial market participants. the introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in regulation (eu) 2019/2088. smes listed on regulated markets should , however , be provided with sufficient time to prepare for the application of the requirement to report sustainability information , due to their smaller size and more limited resources , and taking account of the difficult economic circumstances created by the covid-19 pandemic. they should also be given the possibility to report according to standards that are proportionate to the capacities and resources of smes. non-listed smes can also choose to use these proportionate standards on a voluntary basis. the sme standards will set a reference for undertakings that are within the scope of the directive regarding the level of sustainability information that they could reasonably request from sme suppliers and clients in their value chains. ### (18) considering the growing relevance of sustainability-related risks and taking into account that small and medium-sized enterprises (smes) listed on regulated markets comprise a significant proportion of all listed undertakings in the union , in order to ensure investor protection it is appropriate to require that also those smes disclose information on sustainability matters. the introduction of this requirement will help to ensure that financial market participants can include smaller listed undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. it will therefore help to protect and enhance the access of smaller listed undertakings to financial capital , and avoid discrimination against such undertakings on the part of financial market participants. the introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in regulation (eu) 2019/2088. smes listed on regulated markets should , however , be provided with sufficient time to prepare for the application of the requirement to report sustainability information , due to their smaller size and more limited resources , and taking account of the difficult economic circumstances created by the covid-19 pandemic. they should also be given the possibility to report according to standards that are proportionate to the capacities and resources of smes. a timeline should be set for non-listed smes to apply these proportionate standards. the sme standards will set a reference for undertakings that are within the scope of the directive regarding the level of sustainability information that they could reasonably request from sme suppliers and clients in their value chains.


### (18) considering the growing relevance of sustainability-related risks and taking into account that small and medium-sized enterprises (smes) listed on regulated markets comprise a significant proportion of all listed undertakings in the union , in order to ensure investor protection it is appropriate to require that also those smes disclose information on sustainability matters. the introduction of this requirement will help to ensure that financial market participants can include smaller listed undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. it will therefore help to protect and enhance the access of smaller listed undertakings to financial capital , and avoid discrimination against such undertakings on the part of financial market participants. the introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in regulation (eu) 2019/2088. smes listed on regulated markets should , however , be provided with sufficient time to prepare for the application of the requirement to report sustainability information , due to their smaller size and more limited resources , and taking account of the difficult economic circumstances created by the covid-19 pandemic. they should also be given the possibility to report according to standards that are proportionate to the capacities and resources of smes. non-listed smes can also choose to use these proportionate standards on a voluntary basis. the sme standards will set a reference for undertakings that are within the scope of the directive regarding the level of sustainability information that they could reasonably request from sme suppliers and clients in their value chains. ### (18) considering the growing relevance of sustainability-related risks and taking into account that small and medium-sized enterprises (smes) listed on regulated markets comprise a significant proportion of all listed undertakings in the union , in order to ensure investor protection it is appropriate to require that also those smes disclose information on sustainability matters. the introduction of this requirement will help to ensure that financial market participants can include smaller listed undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. it will therefore help to protect and enhance the access of smaller listed undertakings to financial capital , and avoid discrimination against such undertakings on the part of financial market participants. the introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in regulation (eu) 2019/2088. smes should also be given the possibility to report according to standards that are proportionate to the capacities and resources of smes. a timeline should be set for non-listed smes to apply these proportionate standards. the sme standards will set a reference for undertakings that are within the scope of the directive regarding the level of sustainability information that they could reasonably request from sme suppliers and clients in their value chains.


### (18) considering the growing relevance of sustainability-related risks and taking into account that small and medium-sized enterprises (smes) listed on regulated markets comprise a significant proportion of all listed undertakings in the union , in order to ensure investor protection it is appropriate to require that also those smes disclose information on sustainability matters. the introduction of this requirement will help to ensure that financial market participants can include smaller listed undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. it will therefore help to protect and enhance the access of smaller listed undertakings to financial capital , and avoid discrimination against such undertakings on the part of financial market participants. the introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in regulation (eu) 2019/2088. smes listed on regulated markets should , however , be provided with sufficient time to prepare for the application of the requirement to report sustainability information , due to their smaller size and more limited resources , and taking account of the difficult economic circumstances created by the covid-19 pandemic. they should also be given the possibility to report according to standards that are proportionate to the capacities and resources of smes. non-listed smes can also choose to use these proportionate standards on a voluntary basis. the sme standards will set a reference for undertakings that are within the scope of the directive regarding the level of sustainability information that they could reasonably request from sme suppliers and clients in their value chains. ### (18) considering the growing relevance of sustainability-related risks and taking into account that small and medium-sized enterprises (smes) listed on regulated markets comprise a significant proportion of all listed undertakings in the union , in order to ensure investor protection it is appropriate to require that also those smes disclose information on sustainability matters. the introduction of this requirement will help to ensure that financial market participants can include smaller listed undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. it will therefore help to protect and enhance the access of smaller listed undertakings to financial capital , and avoid discrimination against such undertakings on the part of financial market participants. the introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in regulation (eu) 2019/2088. smes should be given the possibility to report according to standards that are proportionate to the capacities and resources of smes. a timeline should be set for non-listed smes to apply these proportionate standards. the sme standards will set a reference for undertakings that are within the scope of the directive regarding the level of sustainability information that they could reasonably request from sme suppliers and clients in their value chains.


### (21) articles 19a(3) and 29a(3) of directive 2013/34/eu currently exempt all subsidiary undertakings from the obligation to report non-financial information where such undertakings and their subsidiary undertakings are included in the consolidated management report of their parent undertaking , provided this includes the required non-financial information. it is necessary , however to ensure that sustainability information is easily accessible for users , and to bring transparency about which is the parent undertaking of the exempted subsidiary undertaking which is reporting at consolidated level. it is therefore necessary to require those subsidiary undertakings to publish the consolidated management report of their parent undertaking and to include a reference in their management report to the fact that they are exempted from reporting sustainability information. that exemption should also apply where the parent undertaking reporting at consolidated level is a third country undertaking reporting sustainability information in accordance with the requirements of this directive or in a manner equivalent to eu sustainability reporting standards. ### (21) articles 19a(3) and 29a(3) of directive 2013/34/eu currently exempt all subsidiary undertakings from the obligation to report non-financial information where such undertakings and their subsidiary undertakings are included in the consolidated management report of their parent undertaking , as defined in the aforementioned directive , provided this includes the required non-financial information. it is necessary , however to ensure that sustainability information is easily accessible for users , and to bring transparency about the activities of all the undertakings covered by the scope of the directive. it is therefore necessary to require those subsidiary undertakings to publish a consolidated management report of containing information on sustainability matters. the absence of an exemption does not affect the possibility for a parent undertaking to pool costs and resources with its subsidiaries in order for them to fulfil their obligations concerning sustainability reporting and auditing of sustainability reporting. nor does it affect the possibility for parent undertakings to produce a consolidated management report.


### (21) articles 19a(3) and 29a(3) of directive 2013/34/eu currently exempt all subsidiary undertakings from the obligation to report non-financial information where such undertakings and their subsidiary undertakings are included in the consolidated management report of their parent undertaking , provided this includes the required non-financial information. it is necessary , however to ensure that sustainability information is easily accessible for users , and to bring transparency about which is the parent undertaking of the exempted subsidiary undertaking which is reporting at consolidated level. it is therefore necessary to require those subsidiary undertakings to publish the consolidated management report of their parent undertaking and to include a reference in their management report to the fact that they are exempted from reporting sustainability information. that exemption should also apply where the parent undertaking reporting at consolidated level is a third country undertaking reporting sustainability information in accordance with the requirements of this directive or in a manner equivalent to eu sustainability reporting standards. ### (21) articles 19a(3) and 29a(3) of directive 2013/34/eu currently exempt all subsidiary undertakings from the obligation to report non-financial information where such undertakings and their subsidiary undertakings are included in the consolidated management report of their parent undertaking , as defined in that directive , provided this includes the required non-financial information. it is necessary , however to ensure that sustainability information is easily accessible for users , and to bring transparency about the activities of all the undertakings covered by the scope of that directive. it is therefore necessary to require those subsidiary undertakings to publish a management report containing information on sustainability matters. the absence of an exemption does not affect the possibility for a parent undertaking to pool costs and resources with its subsidiaries in order for them to fulfil their obligations concerning sustainability reporting and auditing of sustainability reporting. nor does it affect the possibility for parent undertakings to produce a consolidated management report.


### (26) articles 19a(1) and 29a(1) of directive 2013/34/eu require undertakings to disclose information about five reporting areas: business model , policies (including due diligence processes implemented) , the outcome of those policies , risks and risk management , and key performance indicators relevant to the business. article 19a(1) of directive 2013/34/eu does not contain explicit references to other reporting areas that users of information consider relevant , some of which align with disclosures included in international frameworks , including the recommendations of the task force on climate-related financial disclosures. disclosure requirements should be specified in sufficient detail to ensure that undertakings report information on their resilience to risks related to sustainability matters. in addition to the reporting areas identified in articles 19a(1) and 29a(1) of directive 2013/34/eu , undertakings should therefore be required to disclose information about their business strategy and the resilience of the business model and strategy to risks related to sustainability matters , any plans they may have to ensure that their business model and strategy are compatible with the transition to a sustainable and climate-neutral economy; whether and how their business model and strategy take account of the interests of stakeholders; any opportunities for the undertaking arising from sustainability matters; the implementation of the aspects of the business strategy which affect , or are affected by sustainability matters; any sustainability targets set by the undertaking and the progress made towards achieving them; the role of the board and management with regard to sustainability matters; the principal actual and potential adverse impacts connected with the undertaking’s activities; and how the undertaking has identified the information that they report on. once the disclosure of elements such as targets and the progress towards achieving them is required , the separate requirement to disclose the outcomes of policies is no longer necessary. ### (26) articles 19a(1) and 29a(1) of directive 2013/34/eu require undertakings to disclose information about five reporting areas: business model , policies (including due diligence processes implemented) , the outcome of those policies , risks and risk management , and key performance indicators relevant to the business. article 19a(1) of directive 2013/34/eu does not contain explicit references to other reporting areas that users of information consider relevant , some of which align with disclosures included in international frameworks , including the recommendations of the task force on climate-related financial disclosures. disclosure requirements should be specified in sufficient detail to ensure that undertakings report information on their resilience to risks related to sustainability matters. in addition to the reporting areas identified in articles 19a(1) and 29a(1) of directive 2013/34/eu , undertakings should therefore be required to disclose information about their business strategy and the resilience of the business model and strategy to risks related to sustainability matters , the assessment by the undertaking of its impacts on sustainability matters , any plans they may have to ensure that their business model and strategy respect workers’ rights and potentially affected communities , any plans they may have to ensure that their business model and strategy are compatible with the transition to a sustainable and climate-neutral economy; whether and how their business model and strategy take account of the interests of stakeholders; any opportunities for the undertaking arising from sustainability matters; the implementation of the aspects of the business strategy which affect , or are affected by sustainability matters; any science-based and time-bound short-term , mid-term and long-term sustainability targets set by the undertaking and the progress made towards achieving them; the role of the board and management with regard to sustainability matters; the principal actual and potential adverse impacts connected with the undertaking’s activities; and how the undertaking has identified the information that they report on. once the disclosure of elements such as targets and the progress towards achieving them is required , the separate requirement to disclose the outcomes of policies is no longer necessary.


### (26) articles 19a(1) and 29a(1) of directive 2013/34/eu require undertakings to disclose information about five reporting areas: business model , policies (including due diligence processes implemented) , the outcome of those policies , risks and risk management , and key performance indicators relevant to the business. article 19a(1) of directive 2013/34/eu does not contain explicit references to other reporting areas that users of information consider relevant , some of which align with disclosures included in international frameworks , including the recommendations of the task force on climate-related financial disclosures. disclosure requirements should be specified in sufficient detail to ensure that undertakings report information on their resilience to risks related to sustainability matters. in addition to the reporting areas identified in articles 19a(1) and 29a(1) of directive 2013/34/eu , undertakings should therefore be required to disclose information about their business strategy and the resilience of the business model and strategy to risks related to sustainability matters , any plans they may have to ensure that their business model and strategy are compatible with the transition to a sustainable and climate-neutral economy; whether and how their business model and strategy take account of the interests of stakeholders; any opportunities for the undertaking arising from sustainability matters; the implementation of the aspects of the business strategy which affect , or are affected by sustainability matters; any sustainability targets set by the undertaking and the progress made towards achieving them; the role of the board and management with regard to sustainability matters; the principal actual and potential adverse impacts connected with the undertaking’s activities; and how the undertaking has identified the information that they report on. once the disclosure of elements such as targets and the progress towards achieving them is required , the separate requirement to disclose the outcomes of policies is no longer necessary. ### (26) articles 19a(1) and 29a(1) of directive 2013/34/eu require undertakings to disclose information about five reporting areas: business model , policies (including due diligence processes implemented) , the outcome of those policies , risks and risk management , and key performance indicators relevant to the business. article 19a(1) of directive 2013/34/eu does not contain explicit references to other reporting areas that users of information consider relevant , some of which align with disclosures included in international frameworks , including the recommendations of the task force on climate-related financial disclosures. disclosure requirements should be specified in sufficient detail to ensure that undertakings report information on their resilience to risks related to sustainability matters. in addition to the reporting areas identified in articles 19a(1) and 29a(1) of directive 2013/34/eu , undertakings should therefore be required to disclose information about their business strategy and the resilience of the business model and strategy to risks related to sustainability matters , the assessment by the undertaking of its impacts on sustainability matters , any plans they may have to ensure that their business model and strategy respect workers’ rights and potentially affected communities , any plans they may have to ensure that their business model and strategy are compatible with the transition to a sustainable and climate-neutral economy; whether and how their business model and strategy take account of the interests of stakeholders; whether and how sustainability matters and related targets , in connection with principal risks , opportunities , and severe impacts , have been integrated into the undertaking’s strategy , any opportunities and risks for the undertaking arising from sustainability matters; the implementation of the aspects of the business strategy which affect , or are affected by sustainability matters; any science-based and time-bound short-term , mid-term and long-term sustainability targets set by the undertaking , and a description of the investments , actions and policies adopted to achieve those targets and of the progress made towards achieving them; the role of the board and management with regard to sustainability matters; the due diligence process implemented with regard to sustainability matters , the principal actual and potential adverse impacts connected with the undertaking’s activities; the negative or positive effects of the undertaking’s business practices , policies and decisions on the identified impacts; and how the undertaking has identified the information that they report on. once the disclosure of elements such as targets and the progress towards achieving them is required , the separate requirement to disclose the outcomes of policies is no longer necessary.


### (26) articles 19a(1) and 29a(1) of directive 2013/34/eu require undertakings to disclose information about five reporting areas: business model , policies (including due diligence processes implemented) , the outcome of those policies , risks and risk management , and key performance indicators relevant to the business. article 19a(1) of directive 2013/34/eu does not contain explicit references to other reporting areas that users of information consider relevant , some of which align with disclosures included in international frameworks , including the recommendations of the task force on climate-related financial disclosures. disclosure requirements should be specified in sufficient detail to ensure that undertakings report information on their resilience to risks related to sustainability matters. in addition to the reporting areas identified in articles 19a(1) and 29a(1) of directive 2013/34/eu , undertakings should therefore be required to disclose information about their business strategy and the resilience of the business model and strategy to risks related to sustainability matters , any plans they may have to ensure that their business model and strategy are compatible with the transition to a sustainable and climate-neutral economy; whether and how their business model and strategy take account of the interests of stakeholders; any opportunities for the undertaking arising from sustainability matters; the implementation of the aspects of the business strategy which affect , or are affected by sustainability matters; any sustainability targets set by the undertaking and the progress made towards achieving them; the role of the board and management with regard to sustainability matters; the principal actual and potential adverse impacts connected with the undertaking’s activities; and how the undertaking has identified the information that they report on. once the disclosure of elements such as targets and the progress towards achieving them is required , the separate requirement to disclose the outcomes of policies is no longer necessary. ### (26) articles 19a(1) and 29a(1) of directive 2013/34/eu require undertakings to disclose information about five reporting areas: business model , policies (including due diligence processes implemented) , the outcome of those policies , risks and risk management , and key performance indicators relevant to the business. article 19a(1) of directive 2013/34/eu does not contain explicit references to other reporting areas that users of information consider relevant , some of which align with disclosures included in international frameworks , including the recommendations of the task force on climate-related financial disclosures. disclosure requirements should be specified in sufficient detail to ensure that undertakings report information on their resilience to risks related to sustainability matters. in addition to the reporting areas identified in articles 19a(1) and 29a(1) of directive 2013/34/eu , undertakings should therefore be required to disclose information about their business strategy and the resilience of the business model and strategy to risks related to sustainability matters , the assessment by the undertaking of its impacts on sustainability matters , any plans they may have to ensure that their business model and strategy respect workers’ rights and potentially affected communities , any plans they may have to ensure that their business model and strategy are compatible with the transition to a sustainable and climate-neutral economy; whether and how their business model and strategy take account of the interests of stakeholders; whether and how sustainability matters and related targets , in connection with principal risks , opportunities , and severe impacts , have been integrated into the undertaking’s strategy , any opportunities for the undertaking arising from sustainability matters; the implementation of the aspects of the business strategy which affect , or are affected by sustainability matters; any sustainability targets set by the undertaking and the progress made towards achieving them; the role of the board and management with regard to sustainability matters; the principal actual and potential adverse impacts connected with the undertaking’s activities; and how the undertaking has identified the information that they report on. once the disclosure of elements such as targets and the progress towards achieving them is required , the separate requirement to disclose the outcomes of policies is no longer necessary.


### (26) articles 19a(1) and 29a(1) of directive 2013/34/eu require undertakings to disclose information about five reporting areas: business model , policies (including due diligence processes implemented) , the outcome of those policies , risks and risk management , and key performance indicators relevant to the business. article 19a(1) of directive 2013/34/eu does not contain explicit references to other reporting areas that users of information consider relevant , some of which align with disclosures included in international frameworks , including the recommendations of the task force on climate-related financial disclosures. disclosure requirements should be specified in sufficient detail to ensure that undertakings report information on their resilience to risks related to sustainability matters. in addition to the reporting areas identified in articles 19a(1) and 29a(1) of directive 2013/34/eu , undertakings should therefore be required to disclose information about their business strategy and the resilience of the business model and strategy to risks related to sustainability matters , any plans they may have to ensure that their business model and strategy are compatible with the transition to a sustainable and climate-neutral economy; whether and how their business model and strategy take account of the interests of stakeholders; any opportunities for the undertaking arising from sustainability matters; the implementation of the aspects of the business strategy which affect , or are affected by sustainability matters; any sustainability targets set by the undertaking and the progress made towards achieving them; the role of the board and management with regard to sustainability matters; the principal actual and potential adverse impacts connected with the undertaking’s activities; and how the undertaking has identified the information that they report on. once the disclosure of elements such as targets and the progress towards achieving them is required , the separate requirement to disclose the outcomes of policies is no longer necessary. ### (26) articles 19a(1) and 29a(1) of directive 2013/34/eu require undertakings to disclose information about five reporting areas: business model , policies (including due diligence processes implemented) , the outcome of those policies , risks and risk management , and key performance indicators relevant to the business. article 19a(1) of directive 2013/34/eu does not contain explicit references to other reporting areas that users of information consider relevant , some of which align with disclosures included in international frameworks , including the recommendations of the task force on climate-related financial disclosures. disclosure requirements should be specified in sufficient detail to ensure that undertakings report information on their resilience to risks related to sustainability matters. in addition to the reporting areas identified in articles 19a(1) and 29a(1) of directive 2013/34/eu , undertakings should therefore be required to disclose information about their business strategy and the resilience of the business model and strategy to risks related to sustainability matters , any plans they may have to ensure that their business model and strategy are compatible with the transition to a sustainable and climate-neutral economy; whether and how their business model and strategy take account of the interests of stakeholders; any opportunities for the undertaking arising from sustainability matters; the implementation of the aspects of the business strategy which affect , or are affected by sustainability matters; any science-based and time-bound short-term , mid-term and long-term sustainability targets set by the undertaking , and a description of the investments , actions and policies adopted to achieve those targets and of the progress made towards achieving them; the role of the board and management with regard to sustainability matters; the due diligence process implemented with regard to sustainability matters , the principal actual and potential adverse impacts connected with the undertaking’s activities; the negative or positive effects of the undertaking’s business practices , policies and decisions on the identified impacts; and how the undertaking has identified the information that they report on. once the disclosure of elements such as targets and the progress towards achieving them is required , the separate requirement to disclose the outcomes of policies is no longer necessary.


### (27) to ensure consistency with international instruments such as the un guiding principles on business and human rights and the oecd due diligence guidance for responsible business conduct , the due diligence disclosure requirements should be specified in greater detail than is the case in article 19a(1) , point (b) , and article 29a(1) , point (b) of directive 2013/34/eu. due diligence is the process that undertakings carry out to identify , prevent , mitigate and remediate the principal actual and potential adverse impacts connected with their activities and identifies how they address those adverse impacts. impacts connected with an undertaking’s activities include impacts directly caused by the undertaking , impacts to which the undertaking contributes , and impacts which are otherwise linked to the undertaking’s value chain. the due diligence process concerns the whole value chain of the undertaking including its own operations , its products and services , its business relationships and its supply chains. in alignment with the un guiding principles on business and human rights , an actual or potential adverse impact is to be considered principal where it measures among the greatest impacts connected with the undertaking’s activities based on: the gravity of the impact on people or the environment; the number of individuals that are or could be affected , or the scale of damage to the environment; and the ease with which the harm could be remediated , restoring the environment or affected people to their prior state. ### (27) to ensure consistency with international instruments such as the un guiding principles on business and human rights and the oecd due diligence guidance for responsible business conduct , the due diligence disclosure requirements should be specified in greater detail than is the case in article 19a(1) , point (b) , and article 29a(1) , point (b) of directive 2013/34/eu. due diligence is the process that undertakings carry out to identify , assess , prevent , mitigate , cease , monitor , communicate , account for , address and remediate the actual and potential adverse impacts connected with their activities. impacts connected with an undertaking’s activities include impacts directly caused by the undertaking , impacts to which the undertaking contributes , and impacts which are otherwise linked to the undertaking’s value chain. the due diligence process concerns the whole value chain of the undertaking including its own operations , its products and services , its business relationships and its supply chains. in alignment with the un guiding principles on business and human rights , an actual or potential adverse impact is to be considered principal where it measures among the greatest impacts connected with the undertaking’s activities based on: the gravity of the impact on people or the environment; the number of individuals that are or could be affected , or the scale of damage to the environment; and the ease with which the harm could be remediated , restoring the environment or affected people to their prior state.


### (29) articles 19a(1) and 29a(1) of directive 2013/34/eu do not specify whether the information to be reported is to be forward looking or information about past performance. there is currently a lack of forward-looking disclosures , which users of sustainability information especially value. articles 19a and 29a of directive 2013/34/eu should therefore specify that the sustainability information reported shall include forward-looking and retrospective , and both qualitative and quantitative information. reported sustainability information should also take into account short , medium and long-term time horizons and contain information about the undertaking’s whole value chain , including its own operations , its products and services , its business relationships , and its supply chain , as appropriate. information about the undertaking’s whole value chain would include information related to its value chain within the eu and information that covers third countries if the undertaking’s value chain extends outside the eu. ### (29) articles 19a(1) and 29a(1) of directive 2013/34/eu do not specify whether the information to be reported is to be forward looking or information about past performance. there is currently a lack of forward-looking disclosures , which users of sustainability information especially value. articles 19a and 29a of directive 2013/34/eu should therefore specify that the sustainability information reported shall include forward-looking and retrospective , and both qualitative and quantitative information. reported sustainability information should also take into account short , medium and long-term time horizons and contain information about the undertaking’s whole value chain , including its own operations , workforce , investments , assets , its products and services , its business relationships , and its supply chain , and all information useful in order to understand the impacts and risks related to sustainability matters for the undertaking. information about the undertaking’s whole value chain would include information related to its value chain within the eu and information that covers third countries if the undertaking’s value chain extends outside the eu.


### (34) the european financial reporting advisory group (efrag) is a non-profit association established under belgian law that serves the public interest by providing advice to the commission on the endorsement of international financial reporting standards. efrag has established a reputation as a european centre of expertise on corporate reporting , and is well placed to foster coordination between european sustainability reporting standards and international initiatives that seek to develop standards that are consistent across the world. in march 2021 , a multi-stakeholder task force set up by efrag published recommendations for the possible development of sustainability reporting standards for the european union. those recommendations contain proposals to develop a coherent and comprehensive set of reporting standards , covering all sustainability matters from a double-materiality perspective. those recommendations also contain a detailed roadmap for developing such standards , and proposals for mutually reinforcing cooperation between global standard-setting initiatives and standard-setting initiatives of the european union. in march 2021 , the efrag president published recommendations for possible governance changes to efrag if it were to be asked to develop technical advice about sustainability reporting standards. these recommendations include offsetting up within efrag a new sustainability reporting pillar while not significantly modifying the existing financial reporting pillar. when adopting sustainability reporting standards , the commission should take account of technical advice that efrag will develop. in order to ensure high-quality standards that contribute to the european public good and meet the needs of undertakings and of users of the information reported , efrag’s technical advice should be developed with proper due process , public oversight and transparency , accompanied by cost benefit analyses , and be developed with the expertise of relevant stakeholders. to ensure that union sustainability reporting standards take account of the views of the member states of the union , before adopting the standards the commission should consult the member state expert group on sustainable finance referred to in article 24 of regulation (eu) 2020/852 on efrag’s technical advice. the european securities and markets authority (esma) plays a role in drafting regulatory technical standards pursuant to regulation (eu) 2019/2088 and there needs to be coherence between those regulatory technical standards and sustainability reporting standards. according to regulation (eu) no 1095/2010 of the european parliament and of the council54 , esma also plays a role in promoting supervisory converge in the enforcement of corporate reporting by issuers whose securities are listed on eu regulated markets and who will be required to use these sustainability reporting standards. therefore , esma should be required to provide an opinion on efrag’s technical advice. this opinion should be provided within two months from the date of receipt of the request from the commission. in addition , the commission should consult the european banking authority , the european insurance and occupational pensions authority , the european environment agency , the european union agency for fundamental rights , the european central bank , the committee of european auditing oversight bodies and the platform on sustainable finance to ensure that the sustainability reporting standards are coherent with relevant union policy and legislation. where any of those bodies decide to submit an opinion , they shall do so within two months from the date of being consulted by the commission. ### (34) the european commission should guarantee the inclusion of trade unions in the development of sustainability reporting standards , and to include other relevant stakeholders. the european commission may rely partly on the technical advice of the european financial reporting advisory group (efrag) , a non-profit association established under belgian law that serves the public interest by providing advice to the commission on the endorsement of international financial reporting standards. however , the current structure , governance and functioning of efrag does not provide for the involvement of workers' representatives and civil society organisations. for example , efrag currently requires stakeholders to pay a fee in order to participate in its work which is a barrier for the participation of some stakeholder and entails a risk of conflict of interests with others. important changes regarding the governance of efrag are necessary in order to prevent all conflicts of interests and guarantee the inclusion of non-corporate stakeholders. when adopting sustainability reporting standards technical advice from efrag should thus be sought only as part of a broader consultation that provides for the meaningful participation of non-corporate stakeholders. in order to ensure high-quality standards that contribute to the european public good and meet the needs of undertakings and of users of the information reported , efrag’s technical advice should be developed with proper due process , public oversight and transparency , accompanied by cost benefit analyses , and be developed with the expertise of relevant stakeholders. to ensure that union sustainability reporting standards take account of the views of the member states of the union , before adopting the standards the commission should consult the member state expert group on sustainable finance referred to in article 24 of regulation (eu) 2020/852 on efrag’s technical advice. the european securities and markets authority (esma) plays a role in drafting regulatory technical standards pursuant to regulation (eu) 2019/2088 and there needs to be coherence between those regulatory technical standards and sustainability reporting standards. according to regulation (eu) no 1095/2010 of the european parliament and of the council54 , esma also plays a role in promoting supervisory converge in the enforcement of corporate reporting by issuers whose securities are listed on eu regulated markets and who will be required to use these sustainability reporting standards. therefore , esma should be required to provide an opinion on efrag’s technical advice. this opinion should be provided within two months from the date of receipt of the request from the commission. in addition , the commission should consult the european banking authority , the european insurance and occupational pensions authority , the european environment agency , the european union agency for fundamental rights , the european central bank , the committee of european auditing oversight bodies and the platform on sustainable finance to ensure that the sustainability reporting standards are coherent with relevant union policy and legislation. where any of those bodies decide to submit an opinion , they shall do so within two months from the date of being consulted by the commission.


### (34) the european financial reporting advisory group (efrag) is a non-profit association established under belgian law that serves the public interest by providing advice to the commission on the endorsement of international financial reporting standards. efrag has established a reputation as a european centre of expertise on corporate reporting , and is well placed to foster coordination between european sustainability reporting standards and international initiatives that seek to develop standards that are consistent across the world. in march 2021 , a multi-stakeholder task force set up by efrag published recommendations for the possible development of sustainability reporting standards for the european union. those recommendations contain proposals to develop a coherent and comprehensive set of reporting standards , covering all sustainability matters from a double-materiality perspective. those recommendations also contain a detailed roadmap for developing such standards , and proposals for mutually reinforcing cooperation between global standard-setting initiatives and standard-setting initiatives of the european union. in march 2021 , the efrag president published recommendations for possible governance changes to efrag if it were to be asked to develop technical advice about sustainability reporting standards. these recommendations include offsetting up within efrag a new sustainability reporting pillar while not significantly modifying the existing financial reporting pillar. when adopting sustainability reporting standards , the commission should take account of technical advice that efrag will develop. in order to ensure high-quality standards that contribute to the european public good and meet the needs of undertakings and of users of the information reported , efrag’s technical advice should be developed with proper due process , public oversight and transparency , accompanied by cost benefit analyses , and be developed with the expertise of relevant stakeholders. to ensure that union sustainability reporting standards take account of the views of the member states of the union , before adopting the standards the commission should consult the member state expert group on sustainable finance referred to in article 24 of regulation (eu) 2020/852 on efrag’s technical advice. the european securities and markets authority (esma) plays a role in drafting regulatory technical standards pursuant to regulation (eu) 2019/2088 and there needs to be coherence between those regulatory technical standards and sustainability reporting standards. according to regulation (eu) no 1095/2010 of the european parliament and of the council54 , esma also plays a role in promoting supervisory converge in the enforcement of corporate reporting by issuers whose securities are listed on eu regulated markets and who will be required to use these sustainability reporting standards. therefore , esma should be required to provide an opinion on efrag’s technical advice. this opinion should be provided within two months from the date of receipt of the request from the commission. in addition , the commission should consult the european banking authority , the european insurance and occupational pensions authority , the european environment agency , the european union agency for fundamental rights , the european central bank , the committee of european auditing oversight bodies and the platform on sustainable finance to ensure that the sustainability reporting standards are coherent with relevant union policy and legislation. where any of those bodies decide to submit an opinion , they shall do so within two months from the date of being consulted by the commission. ### (34) the european financial reporting advisory group (efrag) is a non-profit association established under belgian law that serves the public interest by providing advice to the commission on the endorsement of international financial reporting standards. however , the current structure , governance and functioning of efrag does not provide for the involvement of workers’ representatives and civil society organisations. for example , efrag currently requires stakeholders to pay a fee in order to participate in its work , which is a barrier for the participation of some stakeholders and entails a risk of conflict of interests with others. important changes regarding the governance of efrag are necessary in order to prevent all conflicts of interests and guarantee the inclusion of non-corporate stakeholders. efrag has established a reputation as a european centre of expertise on corporate reporting , and is well placed to foster coordination between european sustainability reporting standards and international initiatives that seek to develop standards that are consistent across the world. in march 2021 , a multi-stakeholder task force set up by efrag published recommendations for the possible development of sustainability reporting standards for the european union. those recommendations contain proposals to develop a coherent and comprehensive set of reporting standards , covering all sustainability matters from a double-materiality perspective. those recommendations also contain a detailed roadmap for developing such standards , and proposals for mutually reinforcing cooperation between global standard-setting initiatives and standard-setting initiatives of the european union. in march 2021 , the efrag president published recommendations for possible governance changes to efrag if it were to be asked to develop technical advice about sustainability reporting standards. these recommendations include offsetting up within efrag a new sustainability reporting pillar while not significantly modifying the existing financial reporting pillar. when adopting sustainability reporting standards , the commission should take account of technical advice that efrag will develop. in order to ensure high-quality standards that contribute to the european public good and meet the needs of undertakings and of users of the information reported , efrag’s technical advice should be developed with proper due process , public oversight and transparency , accompanied by cost benefit analyses , and be developed with the expertise of relevant stakeholders. to ensure that union sustainability reporting standards take account of the views of the member states of the union , before adopting the standards the commission should consult the member state expert group on sustainable finance referred to in article 24 of regulation (eu) 2020/852 on efrag’s technical advice. the european securities and markets authority (esma) plays a role in drafting regulatory technical standards pursuant to regulation (eu) 2019/2088 and there needs to be coherence between those regulatory technical standards and sustainability reporting standards. according to regulation (eu) no 1095/2010 of the european parliament and of the council54 , esma also plays a role in promoting supervisory converge in the enforcement of corporate reporting by issuers whose securities are listed on eu regulated markets and who will be required to use these sustainability reporting standards. therefore , esma should be required to provide an opinion on efrag’s technical advice. this opinion should be provided within two months from the date of receipt of the request from the commission. in addition , the commission should consult the european banking authority , the european insurance and occupational pensions authority , the european environment agency , the european union agency for fundamental rights , the european central bank , the committee of european auditing oversight bodies and the platform on sustainable finance to ensure that the sustainability reporting standards are coherent with relevant union policy and legislation. where any of those bodies decide to submit an opinion , they shall do so within two months from the date of being consulted by the commission.