### (43) sustainability reporting standards should specify the information that undertakings should disclose on social factors , including employee factors and human rights. such information should cover the impacts of undertakings on people , including on human health. the information that undertakings disclose about human rights should include information about forced labour in their value chains where relevant. reporting standards that address social factors should specify the information that undertakings should disclose with regard to the principles of the european pillar of social rights that are relevant to businesses , including equal opportunities for all and working conditions. the european pillar of social rights action plan adopted in march 2021 calls for stronger requirements on undertakings to report on social issues. the reporting standards should also specify the information that undertakings should disclose with regard to the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work , the fundamental conventions of the international labour organisation , and the charter of fundamental rights of the european union. ### (43) sustainability reporting standards should specify the information that undertakings should disclose on social factors , including employee factors and human rights. such information should cover the impacts of undertakings on people , including on human health. the undertaking should disclose country-by-country information regarding their workforce , working conditions , including wages per gender and per deciles , working hours , workers’ physical and psychological health and safety. it should also disclose information on social dialogue and workers’ representation. the information that undertakings disclose about human rights should include information about the impacts on human rights and workers’ rights in their value chains , including but not limited to forced labour and living wages in their value chains where relevant. reporting standards that address social factors should specify the information that undertakings should disclose with regard to the principles of the european pillar of social rights that are relevant to businesses , including equal opportunities for all and working conditions. the european pillar of social rights action plan adopted in march 2021 calls for stronger requirements on undertakings to report on social issues. the reporting standards should also specify the information that undertakings should disclose with regard to the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work , the fundamental conventions of the international labour organisation , and the charter of fundamental rights of the european union.


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


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


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


### (44) users need information about governance factors , including information on the role of an undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , the composition of such bodies , and an undertaking’s internal control and risk management systems , including in relation to the reporting process. users also need information about undertakings’ corporate culture and approach to business ethics , including anti-corruption and anti-bribery , and about their political engagements , including lobbying activities. information about the management of the undertaking and the quality of relationships with business partners , including payment practices relating to the date or period for payment , the rate of interest for late payment or the compensation for recovery costs referred to in directive 2011/7/eu of the european parliament and of the council62 on late payment in commercial transactions , helps users to understand an undertaking’s risks as well as its impacts on sustainability matters. every year , thousands of businesses , especially smes , suffer administrative and financial burdens because they are paid late , or not at all. ultimately , late payments lead to insolvency and bankruptcy , with destructive effects on entire value chains. increasing information about payment practices should empower other undertakings to identify prompt and reliable payers , detect unfair payment practices , access information about the businesses they trade with , and negotiate fairer payment terms. ### (44) users need information about governance factors , including information on the role of an undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , the composition of such bodies , and an undertaking’s internal control and risk management systems , including in relation to the reporting process. users also need information about undertakings’ corporate culture and approach to business ethics , including anti-corruption and anti-bribery , and about their political engagements , including lobbying activities. as a part of information about undertakings' internal control and risk management systems as well as its corporate culture and approach to business ethics , users also need information on how an undertaking manages communication and contacts with individuals and organisations such as whistle-blowers , journalists , trade unions , civil society organisations and human rights defenders that raise concerns related to the identification , assessment , prevention and/or mitigation of environmental , social or governance risks in the undertaking's operations , products and services , its business relationships and its value and supply chain. in particular , users need information on what measures an undertaking has taken to afford protection to , legal or otherwise , and to mitigate the risk of retaliation against individuals and organisations. information about the management of the undertaking and the quality of relationships with business partners , including payment practices relating to the date or period for payment , the rate of interest for late payment or the compensation for recovery costs referred to in directive 2011/7/eu of the european parliament and of the council62 on late payment in commercial transactions , helps users to understand an undertaking’s risks as well as its impacts on sustainability matters. every year , thousands of businesses , especially smes , suffer administrative and financial burdens because they are paid late , or not at all. ultimately , late payments lead to insolvency and bankruptcy , with destructive effects on entire value chains. increasing information about payment practices should empower other undertakings to identify prompt and reliable payers , detect unfair payment practices , access information about the businesses they trade with , and negotiate fairer payment terms.


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


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


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


### (47) to meet the information needs from users in a timely manner , and in particular given the urgency to meet the information needs of financial market participants subject to the requirements laid down in the delegated acts adopted pursuant to article 4 , paragraphs 6 and 7 of regulation (eu) 2019/2088 , the commission should adopt a first set of reporting standards by 31 october 2022. that set of reporting standards should specify the information that undertakings should disclose with regard to all reporting areas and sustainability matters , and that financial market participants need to comply with the disclosure obligations laid down in regulation (eu) 2019/2088. the commission should adopt a second set of reporting standards at the latest by 31 october 2023 , specifying complementary information that undertakings should disclose about sustainability matters and reporting areas where necessary , and information that is specific to the sector in which an undertaking operates. the commission should review the standards every 3 years to take account of relevant developments , including the development of international standards. ### (47) to meet the information needs from users in a timely manner , and in particular given the urgency to meet the information needs of financial market participants subject to the requirements laid down in the delegated acts adopted pursuant to article 4 , paragraphs 6 and 7 of regulation (eu) 2019/2088 , the commission should adopt a first set of reporting standards by 31 october 2022. that set of reporting standards should specify the information that undertakings should disclose with regard to all reporting areas and sustainability matters , and that financial market participants need to comply with the disclosure obligations laid down in regulation (eu) 2019/2088. the commission should adopt a second set of reporting standards at the latest by 31 october 2023 , specifying complementary information that undertakings should disclose about sustainability matters and reporting areas where necessary , and information that is specific to the sector in which an undertaking operates. standards for high-impact undertakings active in sectors where sustainability risks are the most severe should be developed as a priority , in particular undertakings active in the extractive industry , the manufacture of wearing apparel , large-scale crop , animal production and seafood industry. the commission should review the standards every 3 years to take account of relevant developments , including the development of international standards.


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


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


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


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


### 3. the coordination measures prescribed by articles 19a , 19d , 29a , 30 and 33 , article 34(1) , second subparagraph , point (aa) , paragraphs 2 and 3 of article 34 , and article 51 of this directive shall also apply to the laws , regulations and administrative provisions of the member states relating to the following undertakings regardless of their legal form: ### 3. the coordination measures prescribed by articles 19a , 19d , 29a , 30 and 33 , article 34(1) , second subparagraph , point , paragraphs 2 and 3 of article 34 , and article 51 of this directive shall also apply to the laws , regulations and administrative provisions of the member states relating to the following undertakings regardless of their legal form:


### (18) ‘sustainability reporting’ means reporting information related to sustainability matters in accordance with articles 19a , 19d and 29a of this directive; ### (18) ‘sustainability reporting’ means reporting information related to sustainability matters in accordance with articles 19a , 19d and 29a of this directive; where the environmental matters shall be based on , and take account of underlying indicators and methodologies set out in regulation (eu) 2020/852 and the delegated acts adopted pursuant to it.


### (18) ‘sustainability reporting’ means reporting information related to sustainability matters in accordance with articles 19a , 19d and 29a of this directive; ### (18) ‘sustainability reporting’ means reporting information related to sustainability matters in accordance with articles 19a , 19d and 29a of this directive , where the environmental matters shall be based on , and take account of underlying indicators and methodologies set out in regulation (eu) 2020/852 and the delegated acts adopted pursuant to it.


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


### (iv) how the undertaking’s business model and strategy take account of the interests of the undertaking’s stakeholders and of the impacts of the undertaking on sustainability matters; ### (iv) how the undertaking’s business model and strategy ensure decent work and safeguard the rights and interests of the undertaking’s stakeholders , including workers and communities and of the impacts of the undertaking on sustainability matters;


### (ii) the principal actual or potential adverse impacts connected with the undertaking’s value chain , including its own operations , its products and services , its business relationships and its supply chain; ### (ii) the principal actual or potential adverse impacts connected with the undertaking’s supply and value chain , including its own operations , its products and services , its business relationships and its supply chain including with regards to all people affected by those impacts with particular attention to persons who frequently face intersectional and diverse discriminations or are in a vulnerable situation , such as women , children minorities , lgbtiq persons , persons with disabilities , from ethnic/racial backgrounds or persons experiencing poverty , especially the20% poorest , or social exclusion


### 1. large undertakings and , as of 1 january 2026 , small and medium-sized undertakings which are undertakings referred to in article 2 , point (1) , point (a) , shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters , and information necessary to understand how sustainability matters affect the undertaking’s development , performance and position. ### 1. all large undertakings and small and medium-sized undertakings which are undertakings referred to in article 2 , point (1) , point (a) , small and medium-sized high-impact undertakings , undertakings registered in a non-eu/eea country with significant business in the eu , and undertakings organised as foundations or trusts or franchises meeting the size criteria for large undertakings in directive 2013/34/eu shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters , and information necessary to understand how sustainability matters affect the undertaking’s development , performance and position.


### a brief description of the undertaking's business model and strategy , including: ### a description of the undertaking's business model and environmental strategy , including:


### the resilience of the undertaking's business model and strategy to risks related to sustainability matters; ### the resilience of the undertaking's business model and strategy to risks related to sustainability matters in particular short , medium , and long-term risks associated with climate change in particular risks associated with:


### (ii) the opportunities for the undertaking related to sustainability matters; ### (ii) the opportunities for the undertaking related to sustainability matters , in particular opportunities related to reductions in ghg emissions;


### (iii) the plans of the undertaking to ensure that its business model and strategy are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement; ### (iii) the plans of the undertaking to ensure that its business model and strategy are compatible with the transition to a climate-neutral , sustainable , renewables-based , circular , energy- and resource-efficient economy where ecosystems and biodiversity are protected and restored , and with the objective of limiting of global warming to 1.5 °c in line with the paris agreement with no or limited overshoot taking into account the latest available science provided by the ipcc , including in particular an environmental and climate strategy comprising at least five-year absolute ghg emissions reduction targets up to 2050 , covering the scopes 1 , 2 and 3 as defined by the ghg protocol and excluding the recourse to carbon offsets , as well as five-year targets to reduce the environmental impact of the undertakings and of its business model , in particular on ecosystems and biodiversity;


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


### a description of the targets related to sustainability matters set by the undertaking and of the progress the undertaking has made towards achieving those targets; ### a description of the time-bound , short , medium and long-term targets related to sustainability matters set by the undertaking with respect to the undertaking’s principle risks and opportunities , whether such targets are science-based alongside corresponding evidence , and of the progress the undertaking has made towards achieving those targets including:


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


### a description of the undertaking’s policies in relation to sustainability matters; ### a description of the undertaking’s policies in relation to sustainability matters including:


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process in line with applicable eu legislation on mandatory human rights and due diligence [directive/regulation xxx] that have been implemented with regard to sustainability matters to prevent , mitigate or remediate actual or potential adverse impacts on sustainability matters , including information on :


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


### (iii) any actions taken , and the result of such actions , to prevent , mitigate or remediate actual or potential adverse impacts; ### (iii) any actions taken , in the application of the due diligence process , and the result of such actions , to prevent , mitigate or remediate actual or potential adverse impacts and the effectiveness of their results;


### a description of the principal risks to the undertaking related to sustainability matters , including the undertaking’s principal dependencies on such matters , and how the undertaking manages those risks; ### a description of the processes established in order to identify stakeholders and to engage with them in setting , enforcing and evaluating the undertaking’s strategy , policies and principal risks to the undertaking related to sustainability matters , including the undertaking’s principal dependencies on such matters , and how the undertaking manages those risks;


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


### undertakings shall report the process carried out to identify the information that they have included in the management report in accordance with paragraph 1 and in this process they shall take account of short , medium and long-term horizons. ### undertakings shall report the process carried out to identify the information that they have included in the management report in accordance with paragraph 1 , including how it is informed by the due diligence process and in this process they shall take account of short , medium and long-term horizons.


### where appropriate , the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s value chain , including the undertaking’s own operations , products and services , its business relationships and its supply chain. ### where necessary for the understanding of the undertaking’s risks , the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s value chain , including the undertaking’s own operations , products and services , its business relationships and its supply chain involved with such risks , in particular in high-risk sectors referred to in annex iia.


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


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


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


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


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


### 1. large undertakings and , as of 1 january 2026 , small and medium-sized undertakings which are undertakings referred to in article 2 , point (1) , point (a) , shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters , and information necessary to understand how sustainability matters affect the undertaking’s development , performance and position. ### 1. all undertakings , including small and medium-sized undertakings which are undertakings referred to in article 2 , point (1) , point (a) , small and medium-sized high-impact undertakings , undertakings registered in a non-eu/eea country with significant business in the eu , and undertakings organised as foundations or trusts or franchises meeting the size criteria for large undertakings in directive 2013/34/eu shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters , and information necessary to understand how sustainability matters affect the undertaking’s development , performance and position.


### 1. large undertakings and , as of 1 january 2026 , small and medium-sized undertakings which are undertakings referred to in article 2 , point (1) , point (a) , shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters , and information necessary to understand how sustainability matters affect the undertaking’s development , performance and position. ### 1. large undertakings , public interest entities , small and medium-sized undertakings operating in high-risk sectors or high-risk areas listed in annex , and undertakings meeting those criteria that operate in the single market without being established in the european union shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters , and information necessary to understand how sustainability matters affect the undertaking’s development , performance and position.


### a brief description of the undertaking's business model and strategy , including: ### a brief description of the undertaking's short- , medium- and long-term business model and strategy , including:


### (iv) how the undertaking’s business model and strategy take account of the interests of the undertaking’s stakeholders and of the impacts of the undertaking on sustainability matters; ### (iv) how the undertaking’s business model and strategy take account of the rights and interests of the undertaking’s stakeholders , including its workers and the broader community , and of the impacts of the undertaking on sustainability matters and related targets , in connection with principle risks and opportunities have been integrated into the undertaking’s strategy;


### a description of the targets related to sustainability matters set by the undertaking and of the progress the undertaking has made towards achieving those targets; ### a description of the time-bound , short , medium and long-term targets related to sustainability matters set by the undertaking with respect to the undertaking’s principle risks and opportunities , whether such targets are science-based alongside corresponding evidence , and of the progress the undertaking has made towards achieving those targets including:


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


### a description of the undertaking’s policies in relation to sustainability matters; ### a description of the undertaking’s policies in relation to sustainability matters , including with regard to:


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process implemented with regard to sustainability matters , including with regard to:


### (ii) the principal actual or potential adverse impacts connected with the undertaking’s value chain , including its own operations , its products and services , its business relationships and its supply chain; ### (ii) the actual or potential adverse impacts connected with the undertaking’s supply and value chain , in particular as identified through the due diligence process , including its own operations , its products and services , its business relationships and its supply chain , including with regard to:


### (iii) any actions taken , and the result of such actions , to prevent , mitigate or remediate actual or potential adverse impacts; ### (iii) any actions taken , including in the application of the due diligence process , and the result of such actions , to prevent , mitigate or remediate actual or potential adverse impacts and the effectiveness of their results;


### where appropriate , the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s value chain , including the undertaking’s own operations , products and services , its business relationships and its supply chain. ### the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s value chain , including the undertaking’s own operations , products and services , its business relationships and its supply chain , in particular in high-risk sectors referred to in annex iia.


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


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


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


### 1. large undertakings and , as of 1 january 2026 , small and medium-sized undertakings which are undertakings referred to in article 2 , point (1) , point (a) , shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters , and information necessary to understand how sustainability matters affect the undertaking’s development , performance and position. ### 1. all large undertakings and small and medium-sized undertakings which are undertakings referred to in article 2 , point (1) , point(a) , small and medium-sized high-impact undertakings , undertakings registered in a non-eu/eea country with significant business in the eu , and undertakings organised as foundations or trusts or franchises meeting the size criteria for large undertakings in directive 2013/34/eu shall include in the management report information necessary to understand the undertaking’s impacts on sustainability matters , and information necessary to understand how sustainability matters affect the undertaking’s development , performance and position.


### where appropriate , the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s value chain , including the undertaking’s own operations , products and services , its business relationships and its supply chain. ### where appropriate , the information referred to in paragraphs 1 and 2 shall contain information about the undertaking’s value chain , including the undertaking’s own operations , products and services , its business relationships and its supply chain , in particular in high-risk sectors.


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


### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards. ### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , the european foundation for living and working conditions , the european agency for safety and health at work , the european institute for gender equality , and relevant stakeholders , including trade unions and civil society organisations , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards.


### specify the information that undertakings are to disclose about social factors , including information about: ### specify the information that undertakings are to disclose about social and gender equality factors , including the undertaking information about:


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


### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities; ### description of gender equality action plans with concret indicators and monitoring tools to ensure its progress , including equal opportunity policies , anti-harassment measures , trainings and mechanism to complain , instruments to achieve gender parity in leadership and management positions , actions to tackle the gender pay gap and other forms of discrimination and training and skills development , and employment and inclusion of people with disabilities;


### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union. ### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , including the cedaw convention , un convention on persons with disabilities , the un declaration on the rights of indigenous peoples , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union.


### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition; ### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition including with regards to the representation of women , person with disabilities , different ages , minority and ethnic/racial backgrounds;


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


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


### specify the information that undertakings are to disclose about environmental factors , including information about: ### specify the information that undertakings are to disclose about environmental and climate factors , including information about:


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


### (iii) water and marine resources; ### (iii) the sustainable use and protection of water , marine , and soil resources;


### (iv) resource use and circular economy; ### (iv) the transition to circular economy , including natural resource use and the life cycle of the products;


### pollution; ### direct , indirect and diffuse pollution , prevention and control;


### (vi) biodiversity and ecosystems; ### (vi) animal welfare , the protection and restoration of biodiversity and ecosystems including commodity driven deforestation , ecosystem degradation and land use;


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment and just transition measures adopted through social dialogue;


### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union. ### (iii) respect for the human and environmental rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union , the european convention on human rights and its additional protocols , the unece convention on access to information , public participation in decision making and access to justice in environmental matters (aarhus convention) and resolution 48/13 adopted by the human rights council on the 8 october 2021 on the human right to a clean , healthy environment.


### the work of global standard-setting initiatives for sustainability reporting , and existing standards and frameworks for natural capital accounting , responsible business conduct , corporate social responsibility , and sustainable development; ### the work of global standard-setting initiatives for sustainability reporting , and existing standards and frameworks for natural capital accounting , responsible business conduct , corporate social responsibility , and sustainable development , including the ghg protocol , the paris agreement and the 2018 ipcc p1 special report on 1.5degrees;


### the criteria set out in the delegated acts adopted pursuant to regulation (eu) 2020/852*7; ### the criteria set out in the delegated acts adopted pursuant to regulation (eu) 2020/852*7including the distinction between environmentally sustainable , transitional and enabling economic activities ;


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


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


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


### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards. ### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , the european foundation for living and working conditions , the european agency for safety and health at work , the european institute for gender equality , the aarhus convention compliance committee and relevant stakeholders , including trade unions and civil society organisations , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards.


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


### climate change mitigation; ### climate change prevention and mitigation , including:


### (iii) water and marine resources; ### (iii) the sustainable use and protection of water , soil and marine resources;


### (iv) resource use and circular economy; ### (iv) the transition to circular economy , including natural resource use and the lifecycle of the products;


### (vi) biodiversity and ecosystems; ### (vi) animal welfare , the protection and restoration of biodiversity and ecosystems , including commodity driven deforestation , ecosystem degradation and land use;


### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities; ### equal treatment and opportunities for all , including gender equality and equal pay for work of equal value , , diversity in terms of age and ethnicity of workers , pay transparency , measures against violence and harassment , training and skills development , and employment and inclusion of people with disabilities;


### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union. ### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions , the charter of fundamental rights of the european union , the european convention on human rights and its additional protocols , the unece convention on access to information , public participation in decision making and access to justice in environmental matters (aarhus convention) and resolution 48/13 adopted by the human rights council on the 8 october 2021 on the human right to a clean , healthy environment.


### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition; ### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition , including with regards to the representation of workers , women and persons with disabilities , from different ages , and with different ethnic , educational and professional backgrounds;


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


### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities; ### equal treatment and opportunities for all , including gender equality and equal pay for work of equal value , diversity in terms of age and ethnicity of workers , pay transparency , measures against violence and harassment , training and skills development , and employment and inclusion of people with disabilities;


### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union. ### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union , the european convention on human rights and its additional protocols , the unece convention on access to information , public participation in decision making and access to justice in environmental matters (aarhus convention) and resolution 48/13 adopted by the human rights council on the 8 october 2021 on the human right to a clean , healthy environment.


### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union. ### (iii) respect for the human rights , fundamental freedoms , democratic principles and standards established in the international bill of human rights and other core un human rights conventions , the international labour organization’s declaration on fundamental principles and rights at work and the ilo fundamental conventions and the charter of fundamental rights of the european union , the un guiding principles on business and human rights , the european convention on human rights and its additional protocols , the unece convention on access to information , public participation in decision making and access to justice in environmental matters (aarhus convention) the un declaration on the rights of indigenous people (unrip ) and its principle of free , prior and informed consent , the ilo indigenous and tribal people convention , 1989 , and resolution 48/13 adopted by the human rights council on the 8 october 2021 on the human right to a clean , healthy environment.


### a description of the diversity policy applied in relation to the undertaking's administrative , management and supervisory bodies with regard to gender and other aspects such as , age , or educational and professional backgrounds , the objectives of that diversity policy , how it has been implemented and the results in the reporting period. if no such policy is applied , the statement shall contain an explanation as to why this is the case.; ### a description of the gender equality , equal opportunities , and diversity policy applied in relation to the undertaking's administrative , management and supervisory bodies with regard to gender and other aspects such as , age , social , ethnic/racial educational and professional backgrounds as well other intersectional characteristics and discriminations protected under directives 2000/43/ec and 2000/78/ec , the objectives and indicators of that policy established and , how it has been implemented and the results and monitoring tools in the reporting period.


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


### how the group’s strategy has been implemented with regard to sustainability matters; ### how the group’s strategy has been implemented with regard to sustainability matters , including gender equality;


### (ii) the principal actual or potential adverse impacts connected with the group’s value chain , including its own operations , its products and services , its business relationships and its supply chain; ### (ii) the principal actual or potential adverse impacts connected with the group’s value chain , including its own operations , its products and services , its business relationships and its supply chain including with regards to all people affected by those impacts with particular attention to persons who frequently face intersectional and diverse discriminations or are in a vulnerable situation , such as women , children minorities , lgbtiq persons , persons with disabilities , from ethnic/racial backgrounds or persons experiencing poverty , especially the 20% poorest , or social exclusion;


### a brief description of the group's business model and strategy , including: ### a description of the group's business model and strategy , including:


### the resilience of the group's business model and strategy to risks related to sustainability matters; ### the resilience of the group's business model and strategy to risks related to sustainability matters in particular short , medium , and long-term risks associated with climate change in particular risks associated with :


### (ii) the opportunities for the group related to sustainability matters; ### (ii) the opportunities for the group related to sustainability matters , in particular opportunities related to reductions in ghg emissions ;


### (iii) the plans of the group to ensure that the group’s business model and strategy compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement; ### (iii) the plans of the group to ensure that the group’s business model and strategy are compatible with the transition to a climate-neutral , sustainable , renewables-based , circular , energy- and resource-efficient economy where ecosystems and biodiversity are protected and restored , and with the objective of limiting of global warming to 1.5 °c in line with the paris agreement with no or limited overshoot taking into account the latest available science provided by the ipcc , including in particular an environmental and climate strategy comprising at least five-year absolute ghg emissions reduction targets up to 2050 , covering the scopes 1 , 2 and 3 as defined by the ghg protocol and excluding the recourse to carbon offsets , as well as five-year targets to reduce the environmental impact of the group and of its business model , in particular on ecosystems and biodiversity;


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


### a description of the targets related to sustainability matters set by the group and of the progress of the undertaking towards achieving them; ### a description of the time-bound , short , medium and long-term , targets related to sustainability matters set by the group with respect to the group's principle risks and opportunities , whether such targets are science-based alongside corresponding evidence , and of the progress the undertaking has made towards achieving those targets including


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


### a description of the group’s policies in relation to sustainability matters; ### a description of the group’s policies in relation to sustainability matters with respect to identified risks and opportunities;;


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process in line with applicable eu legislation on a mandatory human rights and due diligence [directive/regulation xxx] that have been implemented with regard to sustainability matters to prevent , mitigate or remediate actual or potential adverse impacts on sustainability matters , including information on :


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


### (iii) any actions taken , and the result of such actions , to prevent , mitigate or remediate actual or potential adverse impacts; ### (iii) any actions taken , in the application of the due diligence process , and the result of such actions , to prevent , mitigate or remediate actual or potential adverse impacts and the effectiveness of their results;


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


### 5. by way of derogation from article 29a , paragraphs 1-4 , parent undertakings that are small and medium sized undertakings referred to in article 2 , point (1) , point (a) , may report in accordance with the sustainability reporting standards for small and medium sized undertakings referred to in article 19c. ### deleted


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


### the resilience of the group's business model and strategy to risks related to sustainability matters; ### the resilience of the group's business model and strategy to short , medium and long-term risks related to all sustainability matters including economic disruptions , transitional and financial impacts and regulatory impacts;


### (ii) the opportunities for the group related to sustainability matters; ### (ii) the short , medium and long-term opportunities for the group related to sustainability matters;


### (iv) how the group’s business model and strategy take account of the interests of the group’s stakeholders and of the impacts of the group on sustainability matters; ### (iv) how the group’s business model and strategy take account of the interests of the group’s stakeholders and of the impacts of the group on sustainability matters and related targets , in connection with principle risks and opportunities have been integrated into the undertaking’s strategy;


### a description of the targets related to sustainability matters set by the group and of the progress of the undertaking towards achieving them; ### a description of the time-bound , short , medium and long-term , targets related to sustainability matters set by the group with respect to the group's principle risks and opportunities , whether such targets are evidence or science-based , and of the progress of the undertaking has made towards achieving those targets including:


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


### a description of the group’s policies in relation to sustainability matters; ### a description of the group’s policies in relation to sustainability matters with respect to identified risks and opportunities;


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


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


### (iii) any actions taken , and the result of such actions , to prevent , mitigate or remediate actual or potential adverse impacts; ### (iii) any actions taken , including in the application of the due diligence process , and the result of such actions , to prevent , mitigate or remediate actual or potential adverse impacts and the effectiveness of their results;


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


### (aa) where applicable , express an opinion based on a limited assurance engagement as regards the compliance of the sustainability reporting with the requirements of this directive , including the compliance of the sustainability reporting with the reporting standards adopted pursuant to article 19b , the process carried out by the undertaking to identify the information reported pursuant to those reporting standards , and the compliance with the requirement to mark-up sustainability reporting in accordance with article 19d , and as regards the compliance with the reporting requirements of article 8 of regulation (eu) 2020/852.; ### (aa) where applicable , express an opinion based on a limited assurance or , where applicable , reasonable assurance engagement as well as external verifications on reported data for ghg emissions as regards the compliance of the sustainability reporting with the requirements of this directive , including the compliance of the sustainability reporting with the reporting standards adopted pursuant to article 19b , the process carried out by the undertaking to identify the information reported pursuant to those reporting standards , and the compliance with the requirement to mark-up sustainability reporting in accordance with article 19d , and as regards the compliance with the reporting requirements of article 8 of regulation (eu) 2020/852.’;


### (aa) where applicable , express an opinion based on a limited assurance engagement as regards the compliance of the sustainability reporting with the requirements of this directive , including the compliance of the sustainability reporting with the reporting standards adopted pursuant to article 19b , the process carried out by the undertaking to identify the information reported pursuant to those reporting standards , and the compliance with the requirement to mark-up sustainability reporting in accordance with article 19d , and as regards the compliance with the reporting requirements of article 8 of regulation (eu) 2020/852.; ### (aa) where applicable , express an opinion based on a limited assurance or , where applicable , reasonable assurance engagement as regards the compliance of the sustainability reporting with the requirements of this directive , including the compliance of the sustainability reporting with the reporting standards adopted pursuant to article 19b , the process carried out by the undertaking to identify the information reported pursuant to those reporting standards , and the compliance with the requirement to mark-up sustainability reporting in accordance with article 19d , and as regards the compliance with the reporting requirements of article 8 of regulation (eu) 2020/852.;


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


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


### after consulting the european environment agency and the european union agency for fundamental rights , esma shall issue guidelines in accordance with article 16 of regulation 1095/2010 on the supervision of sustainability reporting by national competent authorities. ### after consulting the european environment agency and the european union agency for fundamental rights , the european foundation for living and working conditions , the european agency for safety and health at work , the european institute for gender equality , and relevant stakeholders , including trade unions and civil society organisations. esma shall issue guidelines in accordance with article 16 of regulation 1095/2010 on the supervision of sustainability reporting by national competent authorities.


### (25) articles 19a and 29a of directive 2013/34/eu require reporting not only on information ‘to the extent necessary for an understanding of the undertaking's development , performance , position’ , but also on information necessary for an understanding of the impact of the undertaking’s activities on environmental , social and employee matters , respect for human rights , anti-corruption and bribery matters. those articles therefore require undertakings to report both on how various sustainability matters affect the undertaking , and on the impacts of the activities of the undertaking on people and the environment. that is referred to as the double-materiality perspective , in which the risks to the undertaking and the impacts of the undertaking each represent one materiality perspective. the fitness check on corporate reporting shows that those two perspectives are often not well understood or applied. it is therefore necessary to clarify that undertakings should consider each materiality perspective in its own right , and should disclose information that is material from both perspectives as well as information that is material from only one perspective. ### (25) articles 19a and 29a of directive 2013/34/eu require reporting not only on information ‘to the extent necessary for an understanding of the undertaking's development , performance , position’ , but also on information necessary for an understanding of the impact of the undertaking’s activities on environmental , climate-related , social and workers' rights , gender equality , respect for human rights , anti-corruption and bribery matters. those articles therefore require undertakings to report both on how various sustainability matters affect the undertaking , and on the impacts of the activities of the undertaking on people and the environment. that is referred to as the double-materiality perspective , in which the risks to the undertaking and the impacts of the undertaking each represent one materiality perspective. the fitness check on corporate reporting shows that those two perspectives are often not well understood or applied. it is therefore necessary to clarify that undertakings should consider each materiality perspective in its own right , and should disclose information that is material from both perspectives as well as information that is material from only one perspective.


### (25) articles 19a and 29a of directive 2013/34/eu require reporting not only on information ‘to the extent necessary for an understanding of the undertaking's development , performance , position’ , but also on information necessary for an understanding of the impact of the undertaking’s activities on environmental , social and employee matters , respect for human rights , anti-corruption and bribery matters. those articles therefore require undertakings to report both on how various sustainability matters affect the undertaking , and on the impacts of the activities of the undertaking on people and the environment. that is referred to as the double-materiality perspective , in which the risks to the undertaking and the impacts of the undertaking each represent one materiality perspective. the fitness check on corporate reporting shows that those two perspectives are often not well understood or applied. it is therefore necessary to clarify that undertakings should consider each materiality perspective in its own right , and should disclose information that is material from both perspectives as well as information that is material from only one perspective. ### (25) articles 19a and 29a of directive 2013/34/eu require reporting not only on information ‘to the extent necessary for an understanding of the undertaking's development , performance , position’ , but also on information necessary for an understanding of the impact of the undertaking’s activities on environmental , climate-related , social , gender equality and employee matters , respect for human rights , anti-corruption and bribery matters. those articles therefore require undertakings to report both on how various sustainability matters affect the undertaking , and on the impacts of the activities of the undertaking on people and the environment. that is referred to as the double-materiality perspective , in which the risks to the undertaking and the impacts of the undertaking each represent one materiality perspective. the fitness check on corporate reporting shows that those two perspectives are often not well understood or applied. it is therefore necessary to clarify that undertakings should consider each materiality perspective in its own right , and should disclose information that is material from both perspectives as well as information that is material from only one perspective.