### (15) articles 19a and 29a of directive 2013/34/eu apply to large undertakings that are public-interest entities with an average number of employees in excess of 500 , and to public-interest entities that are parent undertakings of a large group with an average number of employees in excess of 500 on a consolidated basis , respectively. in view of the growth of users’ needs for sustainability information , additional categories of undertakings should be required to report such information. it is therefore appropriate to require all large undertakings and all undertakings listed on regulated markets , except micro undertakings , to report detailed sustainability information. in addition , all undertakings that are parent undertakings of large groups should prepare sustainability reporting at group level. ### (15) articles 19a and 29a of directive 2013/34/eu apply to large undertakings that are public-interest entities with an average number of employees in excess of 500 , and to public-interest entities that are parent undertakings of a large group with an average number of employees in excess of 500 on a consolidated basis , respectively. in view of the growth of users’ needs for sustainability information , additional categories of undertakings should be required to report such information. it is therefore appropriate to require all undertakings to report detailed sustainability information. in addition , all undertakings that are parent undertakings of large groups should prepare sustainability reporting at group level.


### (15) articles 19a and 29a of directive 2013/34/eu apply to large undertakings that are public-interest entities with an average number of employees in excess of 500 , and to public-interest entities that are parent undertakings of a large group with an average number of employees in excess of 500 on a consolidated basis , respectively. in view of the growth of users’ needs for sustainability information , additional categories of undertakings should be required to report such information. it is therefore appropriate to require all large undertakings and all undertakings listed on regulated markets , except micro undertakings , to report detailed sustainability information. in addition , all undertakings that are parent undertakings of large groups should prepare sustainability reporting at group level. ### (15) articles 19a and 29a of directive 2013/34/eu apply to large undertakings that are public-interest entities with an average number of employees in excess of 500 , and to public-interest entities that are parent undertakings of a large group with an average number of employees in excess of 500 on a consolidated basis , respectively. in view of the growth of users’ needs for sustainability information , additional categories of undertakings should be required to report such information. it is therefore appropriate to require all undertakings to report detailed sustainability information. in addition , all undertakings that are parent undertakings of large groups should also prepare sustainability reporting at group level.


### (16) the requirement that also large non-listed undertakings should disclose information on sustainability matters is mainly driven by concerns about the impacts and accountability of such undertakings , including through their value chain. in this respect , all large undertakings should be subject to the same requirements to report sustainability information publicly. in addition , financial market participants also need information from those large non-listed undertakings. ### (16) the requirement that also non-listed undertakings should disclose information on sustainability matters is mainly driven by concerns about the impacts and accountability of undertakings , including through their supply and value chain. in this respect , all large undertakings should be subject to the same requirements to report sustainability information publicly. in addition , financial market participants also need information from those large non-listed undertakings.


### (16) the requirement that also large non-listed undertakings should disclose information on sustainability matters is mainly driven by concerns about the impacts and accountability of such undertakings , including through their value chain. in this respect , all large undertakings should be subject to the same requirements to report sustainability information publicly. in addition , financial market participants also need information from those large non-listed undertakings. ### (16) the requirement that also large non-listed undertakings should disclose information on sustainability matters is mainly driven by concerns about the impacts and accountability of such undertakings , including through their supply and value chain. in this respect , all large undertakings should be subject to the same requirements to report sustainability information publicly. in addition , financial market participants also need information from those large non-listed undertakings.


### (18) considering the growing relevance of sustainability-related risks and taking into account that small and medium-sized enterprises (smes) listed on regulated markets comprise a significant proportion of all listed undertakings in the union , in order to ensure investor protection it is appropriate to require that also those smes disclose information on sustainability matters. the introduction of this requirement will help to ensure that financial market participants can include smaller listed undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. it will therefore help to protect and enhance the access of smaller listed undertakings to financial capital , and avoid discrimination against such undertakings on the part of financial market participants. the introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in regulation (eu) 2019/2088. smes listed on regulated markets should , however , be provided with sufficient time to prepare for the application of the requirement to report sustainability information , due to their smaller size and more limited resources , and taking account of the difficult economic circumstances created by the covid-19 pandemic. they should also be given the possibility to report according to standards that are proportionate to the capacities and resources of smes. non-listed smes can also choose to use these proportionate standards on a voluntary basis. the sme standards will set a reference for undertakings that are within the scope of the directive regarding the level of sustainability information that they could reasonably request from sme suppliers and clients in their value chains. ### (18) considering the growing relevance of sustainability-related risks and taking into account that small and medium-sized enterprises (smes) listed on regulated markets comprise a significant proportion of all listed undertakings in the union , in order to ensure investor protection it is appropriate to require that also those smes disclose information on sustainability matters. the reporting standards are not only necessary but also useful and constitute an opportunity for companies to demonstrate their commitment to the ecological , social and gender equal transition and therefore the establishment of leading standards and thereby feed into their competitive advantage the introduction of this requirement will help to ensure that financial market participants can include smaller listed undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. it will therefore help to protect and enhance the access of smaller listed undertakings to financial capital , and avoid discrimination against such undertakings on the part of financial market participants. the introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in regulation (eu) 2019/2088. smes listed on regulated markets should , however , be provided with sufficient time to prepare for the application of the requirement to report sustainability information , due to their smaller size and more limited resources , and taking account of the difficult economic circumstances created by the covid-19 pandemic. they should also be given the possibility to report according to standards that are proportionate to the capacities and resources of smes. non-listed smes can also choose to use these proportionate standards on a voluntary basis. the sme standards will set a reference for undertakings that are within the scope of the directive regarding the level of sustainability information that they could reasonably request from sme suppliers and clients in their value chains.


### (18) considering the growing relevance of sustainability-related risks and taking into account that small and medium-sized enterprises (smes) listed on regulated markets comprise a significant proportion of all listed undertakings in the union , in order to ensure investor protection it is appropriate to require that also those smes disclose information on sustainability matters. the introduction of this requirement will help to ensure that financial market participants can include smaller listed undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. it will therefore help to protect and enhance the access of smaller listed undertakings to financial capital , and avoid discrimination against such undertakings on the part of financial market participants. the introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in regulation (eu) 2019/2088. smes listed on regulated markets should , however , be provided with sufficient time to prepare for the application of the requirement to report sustainability information , due to their smaller size and more limited resources , and taking account of the difficult economic circumstances created by the covid-19 pandemic. they should also be given the possibility to report according to standards that are proportionate to the capacities and resources of smes. non-listed smes can also choose to use these proportionate standards on a voluntary basis. the sme standards will set a reference for undertakings that are within the scope of the directive regarding the level of sustainability information that they could reasonably request from sme suppliers and clients in their value chains. ### (18) considering the growing relevance of sustainability-related risks and taking into account that small and medium-sized enterprises (smes) represented over 99% of undertakings in the union and employ 65% of all employees in the eu market , in order to ensure investor protection and also to achieve the union's ambitious environmental , climate and social objectives , it is appropriate to require that also those smes disclose information on sustainability matters. the reporting standards are not only necessary but also useful and constitute an opportunity for companies to demonstrate their commitment to the ecological and social transition and to establish leading standards and thereby feed into their competitive advantage. the introduction of this requirement will help to ensure that financial market participants can include smaller and medium sized undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. it will therefore help to protect and enhance the access of smaller undertakings to financial capital , avoid discrimination against such undertakings on the part of financial market participants and to put an equal footing , all undertakings concerning sustainability reporting standards as well as management reporting regardless of their size. the introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in regulation (eu) 2019/2088. smes should , however , be provided with sufficient time to prepare for the application of the requirement to report sustainability information , due to their smaller size and more limited resources , and taking account of the difficult economic circumstances created by the covid-19 pandemic. smes should also be given the possibility to report according to standards that are proportionate to the capacities and resources of smes. there must be a timeline for non-listed smes to apply these proportionate standards. the sme standards will set a reference for undertakings that are within the scope of the directive regarding the level of sustainability information that they could reasonably request from sme suppliers and clients in their supply and value chains.


### (18) considering the growing relevance of sustainability-related risks and taking into account that small and medium-sized enterprises (smes) listed on regulated markets comprise a significant proportion of all listed undertakings in the union , in order to ensure investor protection it is appropriate to require that also those smes disclose information on sustainability matters. the introduction of this requirement will help to ensure that financial market participants can include smaller listed undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. it will therefore help to protect and enhance the access of smaller listed undertakings to financial capital , and avoid discrimination against such undertakings on the part of financial market participants. the introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in regulation (eu) 2019/2088. smes listed on regulated markets should , however , be provided with sufficient time to prepare for the application of the requirement to report sustainability information , due to their smaller size and more limited resources , and taking account of the difficult economic circumstances created by the covid-19 pandemic. they should also be given the possibility to report according to standards that are proportionate to the capacities and resources of smes. non-listed smes can also choose to use these proportionate standards on a voluntary basis. the sme standards will set a reference for undertakings that are within the scope of the directive regarding the level of sustainability information that they could reasonably request from sme suppliers and clients in their value chains. ### (18) the relevance of sustainability-related risks is growing and small and medium-sized enterprises (smes) represent over 99 per cent of undertakings and employ 65 per cent of all employees in the union. therefore , in order to ensure investor protection and positive social and environmental impacts of their business operations as well as to achieve the union’s ambitious environmental , climate and social objectives , it is appropriate to require that also smes disclose information on sustainability matters. the reporting standards are not only necessary but also useful and constitute an opportunity for companies to demonstrate their commitment to the ecological and social transition and the establishment of leading standards and thereby feed into their competitive advantage. the introduction of this requirement will help to ensure that financial market participants can include smaller undertakings in investment portfolios on the basis that they report the sustainability information that financial market participants need. it will therefore help to protect and enhance the access of smaller undertakings to financial capital , and avoid discrimination against such undertakings on the part of financial market participants and to put an equal footing , all undertakings concerning sustainability reporting standards as well as management reporting regardless of their size. the introduction of this requirement is also necessary to ensure that financial market participants have the information they need from investee undertakings to be able to comply with their own sustainability disclosure requirements laid down in regulation (eu) 2019/2088. smes should , however , be provided with sufficient time to prepare for the application of the requirement to report sustainability information , due to their smaller size and more limited resources. they should also be given the possibility to report on the sustainability standards in a way and format that is proportionate to the capacities and resources of smes.


### (21) articles 19a(3) and 29a(3) of directive 2013/34/eu currently exempt all subsidiary undertakings from the obligation to report non-financial information where such undertakings and their subsidiary undertakings are included in the consolidated management report of their parent undertaking , provided this includes the required non-financial information. it is necessary , however to ensure that sustainability information is easily accessible for users , and to bring transparency about which is the parent undertaking of the exempted subsidiary undertaking which is reporting at consolidated level. it is therefore necessary to require those subsidiary undertakings to publish the consolidated management report of their parent undertaking and to include a reference in their management report to the fact that they are exempted from reporting sustainability information. that exemption should also apply where the parent undertaking reporting at consolidated level is a third country undertaking reporting sustainability information in accordance with the requirements of this directive or in a manner equivalent to eu sustainability reporting standards. ### (21) articles 19a(3) and 29a(3) of directive 2013/34/eu currently exempt all subsidiary undertakings from the obligation to report non-financial information where such undertakings and their subsidiary undertakings are included in the consolidated management report of their parent undertaking , provided this includes the required non-financial information. it is necessary , however to ensure that sustainability information is easily accessible for users including with regards to subsidiaries.


### (21) articles 19a(3) and 29a(3) of directive 2013/34/eu currently exempt all subsidiary undertakings from the obligation to report non-financial information where such undertakings and their subsidiary undertakings are included in the consolidated management report of their parent undertaking , provided this includes the required non-financial information. it is necessary , however to ensure that sustainability information is easily accessible for users , and to bring transparency about which is the parent undertaking of the exempted subsidiary undertaking which is reporting at consolidated level. it is therefore necessary to require those subsidiary undertakings to publish the consolidated management report of their parent undertaking and to include a reference in their management report to the fact that they are exempted from reporting sustainability information. that exemption should also apply where the parent undertaking reporting at consolidated level is a third country undertaking reporting sustainability information in accordance with the requirements of this directive or in a manner equivalent to eu sustainability reporting standards. ### (21) articles 19a(3) and 29a(3) of directive 2013/34/eu currently exempt all subsidiary undertakings from the obligation to report non-financial information where such undertakings and their subsidiary undertakings are included in the consolidated management report of their parent undertaking , provided this includes the required non-financial information. it is necessary , however to ensure that sustainability information is easily accessible for users , including with regard to subsidiaries.


### (26) articles 19a(1) and 29a(1) of directive 2013/34/eu require undertakings to disclose information about five reporting areas: business model , policies (including due diligence processes implemented) , the outcome of those policies , risks and risk management , and key performance indicators relevant to the business. article 19a(1) of directive 2013/34/eu does not contain explicit references to other reporting areas that users of information consider relevant , some of which align with disclosures included in international frameworks , including the recommendations of the task force on climate-related financial disclosures. disclosure requirements should be specified in sufficient detail to ensure that undertakings report information on their resilience to risks related to sustainability matters. in addition to the reporting areas identified in articles 19a(1) and 29a(1) of directive 2013/34/eu , undertakings should therefore be required to disclose information about their business strategy and the resilience of the business model and strategy to risks related to sustainability matters , any plans they may have to ensure that their business model and strategy are compatible with the transition to a sustainable and climate-neutral economy; whether and how their business model and strategy take account of the interests of stakeholders; any opportunities for the undertaking arising from sustainability matters; the implementation of the aspects of the business strategy which affect , or are affected by sustainability matters; any sustainability targets set by the undertaking and the progress made towards achieving them; the role of the board and management with regard to sustainability matters; the principal actual and potential adverse impacts connected with the undertaking’s activities; and how the undertaking has identified the information that they report on. once the disclosure of elements such as targets and the progress towards achieving them is required , the separate requirement to disclose the outcomes of policies is no longer necessary. ### (26) articles 19a(1) and 29a(1) of directive 2013/34/eu require undertakings to disclose information about five reporting areas: business model , policies (including due diligence processes implemented) , the outcome of those policies , risks and risk management , and key performance indicators relevant to the business. article 19a(1) of directive 2013/34/eu does not contain explicit references to other reporting areas that users of information consider relevant , some of which align with disclosures included in international frameworks , including the recommendations of the task force on climate-related financial disclosures. disclosure requirements must be specified in sufficient detail to ensure that undertakings report information on their resilience to risks related to sustainability matters. in addition to the reporting areas identified in articles 19a(1) and 29a(1) of directive 2013/34/eu , undertakings should therefore be required to disclose information about their business strategy and the resilience of the business model and strategy to risks related to sustainability matters , any plans they may have to ensure that their business model and strategy are compatible with the transition to a sustainable and climate-neutral economy and should include information on planetary boundaries and in particular on climate , deforestation , ecological and ecosystems health , biodiversity restoration , soil health and degradation , carbon farming practices including the restoration of peatland areas , manure and nutrient management , as well as information concerning the reduction of pesticides , fertilisers and antibiotics sales or use; whether and how their business model and strategy take account of the interests of stakeholders; any opportunities for the undertaking arising from sustainability matters; the implementation of the aspects of the business strategy which affect , or are affected by sustainability matters; any sustainability targets set by the undertaking and the progress made towards achieving them; the role of the board and management with regard to sustainability matters; the principal actual and potential adverse impacts connected with the undertaking’s activities; and how the undertaking has identified the information that they report on. once the disclosure of elements such as targets and the progress towards achieving them is required , the separate requirement to disclose the outcomes of policies is no longer necessary.


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


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


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


### (27) to ensure consistency with international instruments such as the un guiding principles on business and human rights and the oecd due diligence guidance for responsible business conduct , the due diligence disclosure requirements should be specified in greater detail than is the case in article 19a(1) , point (b) , and article 29a(1) , point (b) of directive 2013/34/eu. due diligence is the process that undertakings carry out to identify , prevent , mitigate and remediate the principal actual and potential adverse impacts connected with their activities and identifies how they address those adverse impacts. impacts connected with an undertaking’s activities include impacts directly caused by the undertaking , impacts to which the undertaking contributes , and impacts which are otherwise linked to the undertaking’s value chain. the due diligence process concerns the whole value chain of the undertaking including its own operations , its products and services , its business relationships and its supply chains. in alignment with the un guiding principles on business and human rights , an actual or potential adverse impact is to be considered principal where it measures among the greatest impacts connected with the undertaking’s activities based on: the gravity of the impact on people or the environment; the number of individuals that are or could be affected , or the scale of damage to the environment; and the ease with which the harm could be remediated , restoring the environment or affected people to their prior state. ### (27) to ensure consistency with international instruments such as the un guiding principles on business and human rights , the oecd due diligence guidance for responsible business conduct , and the ilo tripartite declaration of principles concerning multinational enterprises and social policy , the due diligence disclosure requirements should be specified in greater detail than is the case in article19a(1) , point (b) , and article 29a(1) , point (b) of directive2013/34/eu. due diligence is the process that undertakings carry out to identify , prevent , mitigate and remediate the principal actual and potential adverse impacts connected with their activities and identifies how they address those adverse impacts. impacts connected with an undertaking’s operations and activities include impacts directly caused by the undertaking , impacts to which the undertaking contributes , and impacts which are otherwise linked to the undertaking’s value chain. the due diligence process concerns the whole value chain of the undertaking including its own operations , its products and services , its business relationships and its supply chains. in alignment with the un guiding principles on business and human rights , an actual or potential adverse impact is to be considered principal where it measures among the greatest impacts connected with the undertaking’s activities based on: the gravity of the impact on people or the environment; the number of individuals that are or could be affected , or the scale of damage to the environment; and the ease with which the harm could be remediated , restoring the environment or affected people to their prior state.


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


### (28) directive 2013/34/eu does not require the disclosure of information on intangibles other than intangible assets recognised in the balance sheet. it is widely recognised that information on intangible assets and other intangible factors , including internally-generated intangibles , is underreported , impeding the proper assessment of an undertaking’s development , performance and position and monitoring of investments. to enable investors to better understand the increasing gap between the accounting book value of many undertakings and their market valuation , which is observed in many sectors of the economy , adequate reporting on intangibles should be required. it is therefore necessary to require undertakings to disclose information on intangibles other than intangible assets recognised in the balance sheet , including intellectual capital , human capital , including skills development , and social and relationship capital , including reputation capital. information on intangibles should also include information related to research and development. ### (28) directive 2013/34/eu does not require the disclosure of information on intangibles other than intangible assets recognised in the balance sheet. it is widely recognised that information on intangible assets and other intangible factors , including internally-generated intangibles , is underreported , impeding the proper assessment of an undertaking’s development , performance and position and monitoring of investments. to enable investors to better understand the increasing gap between the accounting book value of many undertakings and their market valuation , which is observed in many sectors of the economy , adequate reporting on intangibles should be required. it is therefore necessary to require undertakings to disclose information on intangibles other than intangible assets recognised in the balance sheet , including intellectual capital , human capital , including skills development , and social and relationship capital , including reputation capital. information on intangibles should also include information related to research and development as well as any profits generated on intangible property.


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


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


### (34) the european financial reporting advisory group (efrag) is a non-profit association established under belgian law that serves the public interest by providing advice to the commission on the endorsement of international financial reporting standards. efrag has established a reputation as a european centre of expertise on corporate reporting , and is well placed to foster coordination between european sustainability reporting standards and international initiatives that seek to develop standards that are consistent across the world. in march 2021 , a multi-stakeholder task force set up by efrag published recommendations for the possible development of sustainability reporting standards for the european union. those recommendations contain proposals to develop a coherent and comprehensive set of reporting standards , covering all sustainability matters from a double-materiality perspective. those recommendations also contain a detailed roadmap for developing such standards , and proposals for mutually reinforcing cooperation between global standard-setting initiatives and standard-setting initiatives of the european union. in march 2021 , the efrag president published recommendations for possible governance changes to efrag if it were to be asked to develop technical advice about sustainability reporting standards. these recommendations include offsetting up within efrag a new sustainability reporting pillar while not significantly modifying the existing financial reporting pillar. when adopting sustainability reporting standards , the commission should take account of technical advice that efrag will develop. in order to ensure high-quality standards that contribute to the european public good and meet the needs of undertakings and of users of the information reported , efrag’s technical advice should be developed with proper due process , public oversight and transparency , accompanied by cost benefit analyses , and be developed with the expertise of relevant stakeholders. to ensure that union sustainability reporting standards take account of the views of the member states of the union , before adopting the standards the commission should consult the member state expert group on sustainable finance referred to in article 24 of regulation (eu) 2020/852 on efrag’s technical advice. the european securities and markets authority (esma) plays a role in drafting regulatory technical standards pursuant to regulation (eu) 2019/2088 and there needs to be coherence between those regulatory technical standards and sustainability reporting standards. according to regulation (eu) no 1095/2010 of the european parliament and of the council54 , esma also plays a role in promoting supervisory converge in the enforcement of corporate reporting by issuers whose securities are listed on eu regulated markets and who will be required to use these sustainability reporting standards. therefore , esma should be required to provide an opinion on efrag’s technical advice. this opinion should be provided within two months from the date of receipt of the request from the commission. in addition , the commission should consult the european banking authority , the european insurance and occupational pensions authority , the european environment agency , the european union agency for fundamental rights , the european central bank , the committee of european auditing oversight bodies and the platform on sustainable finance to ensure that the sustainability reporting standards are coherent with relevant union policy and legislation. where any of those bodies decide to submit an opinion , they shall do so within two months from the date of being consulted by the commission. ### (34) the european financial reporting advisory group(efrag) is a non-profit association established under belgian law that serves the public interest by providing advice to the commission on the endorsement of international financial reporting standards. efrag has established a reputation as a european centre of expertise on corporate reporting ,. in march 2021 , a multi-stakeholder task force set up by efrag published recommendations for the possible development of sustainability reporting standards for the european union. those recommendations contain proposals to develop a coherent and comprehensive set of reporting standards , covering all sustainability matters from a double-materiality perspective. those recommendations also contain a detailed roadmap for developing such standards , and proposals for mutually reinforcing cooperation between global standard-setting initiatives and standard-setting initiatives of the european union. in march 2021 , the efrag president published recommendations for possible governance changes to efrag if it were to be asked to develop technical advice about sustainability reporting standards. these recommendations include offsetting up within efrag a new sustainability reporting pillar while not significantly modifying the existing financial reporting pillar. taking into account however the expansion of the sustainability reporting standards following this directive , the current composition of efrag and its restricting funding structure , there is a need to designate a european sustainable corporate reporting board (escrb) as a new independent and publically controlled advisory body to take over the advisory role on the sustainability reporting standards from efrag. through its composition , funding and governance structure , the escrd should ensure that its positions and technical advice reflect balanced and quality input of experts from all different fields and representing all relevant stakeholders. it the escrb will have a tripartite structure with its members coming from (1) public authorities , (2)corporate representatives and (3) civil society , including trade unions. when adopting sustainability reporting standards , the commission should take account of technical advice that the escrd will develop. in order to ensure high-quality standards that contribute to the european public good and meet the needs of undertakings and of users of the information reported , escrd’s technical advice should be developed with proper due process , public oversight and transparency , accompanied by cost benefit analyses , and be developed with the expertise of relevant stakeholders. to ensure coherence between corporate financial reporting standards and corporate sustainability reporting standards , the escrd and efrag should meet on a regular basis and develop a close cooperation. to ensure that union sustainability reporting standards take account of the views of the member states of the union , before adopting the standards the commission should consult the member state expert group on sustainable finance referred to in article 24 of regulation (eu) 2020/852 on efrag’s technical advice. in addition , the commission should consult all relevant eu bodies , including the european securities and markets authority , the european banking authority , the european insurance and occupational pensions authority , the european environment agency , the european union agency for fundamental rights , the european foundation for the improvement of living and working conditions , the european agency for safety and health at work , the european institute for gender equality , the european central bank , the committee of european auditing oversight bodies and the platform on sustainable finance , as well as relevant stakeholders such as civil society organisations and trade unions , to ensure that the sustainability reporting standards are coherent with relevant union policy and legislation. where any of those bodies decide to submit an opinion , they shall do so within two months from the date of being consulted by the commission.


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


### (36) sustainability reporting standards should take account of the commission guidelines on non-financial reporting60 and the commission guidelines on reporting climate-related information61 . they should also take account of other reporting requirements in directive 2013/34/eu not directly related to sustainability , with the aim of providing the users of the reported information with a better understanding of the development , performance , position and impact of the undertaking , by maximising the links between the sustainability information and other information reported in accordance with directive 2013/34/eu. ### (36) sustainability reporting standards should take account of the commission guidelines on non-financial reporting60 and the commission guidelines on reporting climate-related information61 . they should also take account of other reporting requirements in directive 2013/34/eu in particular , reporting on payments to governments by undertakings active in the extractive and logging industries , as well as other reporting requirements not directly related to sustainability , with the aim of providing the users of the reported information with a better understanding of the development , performance , position and the environmental impact of the undertaking , by maximising the links between the sustainability information and other information reported in accordance with directive 2013/34/eu.


### (36) sustainability reporting standards should take account of the commission guidelines on non-financial reporting60 and the commission guidelines on reporting climate-related information61 . they should also take account of other reporting requirements in directive 2013/34/eu not directly related to sustainability , with the aim of providing the users of the reported information with a better understanding of the development , performance , position and impact of the undertaking , by maximising the links between the sustainability information and other information reported in accordance with directive 2013/34/eu. ### (36) sustainability reporting standards should take account of the commission guidelines on non-financial reporting60 and the commission guidelines on reporting climate-related information61 . they should also take account of other reporting requirements in directive 2013/34/eu , including reporting on payments to governments by undertakings active in the extractive and logging industries , as well as other reporting requirements not directly related to sustainability , with the aim of providing the users of the reported information with a better understanding of the development , performance , position and environmental and social impact of the undertaking , by maximising the links between the sustainability information and other information reported in accordance with directive 2013/34/eu.


### (36) sustainability reporting standards should take account of the commission guidelines on non-financial reporting60 and the commission guidelines on reporting climate-related information61 . they should also take account of other reporting requirements in directive 2013/34/eu not directly related to sustainability , with the aim of providing the users of the reported information with a better understanding of the development , performance , position and impact of the undertaking , by maximising the links between the sustainability information and other information reported in accordance with directive 2013/34/eu. ### (36) sustainability reporting standards should take account of the commission guidelines on non-financial reporting60 and the commission guidelines on reporting climate-related information61 . they should also take account of other reporting requirements in directive 2013/34/eu , including reporting on payments to governments by undertakings active i.e. in the extractive and logging industries , agriculture and fisheries , as well as other reporting requirements not directly related to sustainability , with the aim of providing the users of the reported information with a better understanding of the development , performance , position and environmental and social impact of the undertaking , by maximising the links between the sustainability information and other information reported in accordance with directive 2013/34/eu.


### (37) sustainability reporting standards should be proportionate , and should not impose unnecessary administrative burden on companies that are required to use them. in order to minimise disruption for undertakings that already report sustainability information , sustainability reporting standards should take account of existing standards and frameworks for sustainability reporting and accounting where appropriate. those include the global reporting initiative , the sustainability accounting standards board , the international integrated reporting council , the international accounting standards board , the task force on climate-related financial disclosures , the carbon disclosure standards board , and cdp (formerly the carbon disclosure project). standards of the european union should take account of any sustainability reporting standards developed under the auspices of international financial reporting standards foundation. to avoid unnecessary regulatory fragmentation that may have negative consequences for undertakings operating globally , european standards should contribute to the process of convergence of sustainability reporting standards at global level. ### (37) sustainability reporting standards should be proportionate , and should not impose unnecessary administrative burden on companies that are required to use them. in order to minimise disruption for undertakings that already report sustainability information , sustainability reporting standards should take account of existing standards and frameworks for sustainability reporting and accounting where appropriate. those include the global reporting initiative , the sustainability accounting standards board , the international integrated reporting council , the international accounting standards board , the task force on climate-related financial disclosures , the carbon disclosure standards board , and cdp (formerly the carbon disclosure project) , and the ghg protocol in the calculation of ghg emissions from undertakings , and including emissions generated from industrial livestock production. standards of the european union should take account of any sustainability reporting standards developed under the auspices of international financial reporting standards foundation. to avoid unnecessary regulatory fragmentation that may have negative consequences for undertakings operating globally , european standards should contribute to the process of convergence of sustainability reporting standards at global level.


### (37) sustainability reporting standards should be proportionate , and should not impose unnecessary administrative burden on companies that are required to use them. in order to minimise disruption for undertakings that already report sustainability information , sustainability reporting standards should take account of existing standards and frameworks for sustainability reporting and accounting where appropriate. those include the global reporting initiative , the sustainability accounting standards board , the international integrated reporting council , the international accounting standards board , the task force on climate-related financial disclosures , the carbon disclosure standards board , and cdp (formerly the carbon disclosure project). standards of the european union should take account of any sustainability reporting standards developed under the auspices of international financial reporting standards foundation. to avoid unnecessary regulatory fragmentation that may have negative consequences for undertakings operating globally , european standards should contribute to the process of convergence of sustainability reporting standards at global level. ### (37) sustainability reporting standards should be proportionate , and should not impose unnecessary administrative burden on companies that are required to use them. in order to minimise disruption for undertakings that already report sustainability information , sustainability reporting standards should take account of existing standards and frameworks for sustainability reporting and accounting where appropriate. those include the global reporting initiative , the sustainability accounting standards board , the international integrated reporting council , the international accounting standards board , the task force on climate-related financial disclosures , the carbon disclosure standards board , and cdp (formerly the carbon disclosure project) and the greenhouse gas protocol in the calculation of greenhouse gas (ghg) emissions from undertakings , and including emissions generated from industrial livestock production. . standards of the european union should take account of any sustainability reporting standards developed under the auspices of international financial reporting standards foundation. to avoid unnecessary regulatory fragmentation that may have negative consequences for undertakings operating globally , european standards should contribute to the process of convergence of sustainability reporting standards at global level.


### (38) in its communication on the european green deal , the european commission committed to support businesses and other stakeholders in developing standardised natural capital accounting practices within the union and internationally , with the aim of ensuring appropriate management of environmental risks and mitigation opportunities , and reduce related transaction costs. the transparent project sponsored under the life programme is developing the first natural capital accounting methodology , which will make existing methods easier to compare and more transparent while lowering the threshold for companies to adopt and use the systems in support of future-proofing their business. the natural capital protocol is also an important reference in this field. while natural capital accounting methods serve principally to strengthen internal management decisions , they should be duly considered when establishing sustainability reporting standards. some natural capital accounting methodologies seek to assign a monetary value to the environmental impacts of companies’ activities , which may help users to better understand those impacts. it is therefore appropriate that sustainability reporting standards should be able to include monetised indicators of sustainability impacts if that is deemed necessary. ### deleted


### (39) sustainability reporting standards should also take account of internationally recognised principles and frameworks on responsible business conduct , corporate social responsibility , and sustainable development , including the un sustainable development goals , the un guiding principles on business and human rights , the oecd guidelines for multinational enterprises , the oecd due diligence guidance for responsible business conduct and related sectoral guidelines , the un global compact , the tripartite declaration of principles of the international labour organisation concerning multinational enterprises and social policy , the iso 26000 standard on social responsibility , and the un principles for responsible investment. ### (39) sustainability reporting standards should also take account of internationally recognised principles and frameworks on responsible business conduct , corporate social responsibility , and sustainable development , including the un sustainable development goals , the un guiding principles on business and human rights , the oecd guidelines for multinational enterprises , the oecd due diligence guidance for responsible business conduct and related sectoral guidelines , the un global compact , the tripartite declaration of principles of the international labour organisation concerning multinational enterprises and social policy , the iso 26000 standard on social responsibility , and the un principles for responsible investment. other frameworks such as the un declaration on the rights of indigenous peoples (undrip) and its principle of free , prior and informed consent should equally be taken into account.


### (40) it should be ensured that the information reported by undertakings in accordance with the sustainability reporting standards meet the needs of users. the reporting standards should therefore specify the information that undertakings are to disclose on all major environmental factors , including their impacts and dependencies on climate , air , land , water and biodiversity. regulation (eu) 2020/852 provides a classification of the environmental objectives of the union. for reasons of coherence , it is appropriate to use a similar classification to identify the environmental factors that should be addressed by sustainability reporting standards. the reporting standards should consider and specify any geographical or other contextual information that undertakings should disclose to provide an understanding of their principal impacts on sustainability matters and the principal risks to the undertaking arising from sustainability matters. ### (40) it should be ensured that the information reported by undertakings in accordance with the sustainability reporting standards meet the needs of users. the reporting standards should therefore specify the information that undertakings are to disclose on all major environmental factors , including their impacts and dependencies on climate , air , land , water , biodiversity and all nine of the planetary boundaries. regulation (eu) 2020/852 provides a classification of the environmental objectives of the union. for reasons of coherence , it is necessary to use a similar classification to identify the environmental factors that should be addressed by sustainability reporting standards. the reporting standards should consider and specify any geographical or other contextual information that undertakings should disclose to provide an understanding of their principal impacts on sustainability matters and the principal risks to the undertaking arising from sustainability matters.


### (40) it should be ensured that the information reported by undertakings in accordance with the sustainability reporting standards meet the needs of users. the reporting standards should therefore specify the information that undertakings are to disclose on all major environmental factors , including their impacts and dependencies on climate , air , land , water and biodiversity. regulation (eu) 2020/852 provides a classification of the environmental objectives of the union. for reasons of coherence , it is appropriate to use a similar classification to identify the environmental factors that should be addressed by sustainability reporting standards. the reporting standards should consider and specify any geographical or other contextual information that undertakings should disclose to provide an understanding of their principal impacts on sustainability matters and the principal risks to the undertaking arising from sustainability matters. ### (40) it should be ensured that the information reported by undertakings in accordance with the sustainability reporting standards meet the needs of users. the reporting standards should therefore specify the information that undertakings are to disclose on all major environmental factors , including their impacts and dependencies on climate , air , land , water , biodiversity and all nine planetary boundaries. regulation (eu) 2020/852 provides a classification of the environmental objectives of the union. for reasons of coherence , it is necessary to use a similar classification to identify the environmental factors that should be addressed by sustainability reporting standards. the reporting standards should consider and specify any geographical or other contextual information that undertakings should disclose to provide an understanding of their principal impacts on sustainability matters and the principal risks to the undertaking arising from sustainability matters.


### (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 and gender equality factors , including workers’ right , equality , diversity , inclusion and human rights. such information should cover the impacts of undertakings its workers , 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 20 principles of the european pillar of social rights particularly equal opportunities for all , gender equality , work life balance and fair working conditions. the european pillar of social rights action plan adopted in march2021 calls for stronger requirements on undertakings to report on social issues. the information undertakings disclose about gender equality should include gender action plans containing policies to ensure equal pay between genders , the pay reporting requirements as stablished by the pay transparency directive and relevant activities to promote equal opportunities , diversity , work life balance and anti-harassment measures in the work place. the gender action plans should contain relevant indicators and monitoring tools to ensure progress in the area. 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 , including cedaw convention , the un convention on the rights of 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 , 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 , climate and environmental factors , including employee factors and human rights. such information should cover the impacts of undertakings on people , including on human health and the environment as part of a 'one health' approach. the information that undertakings disclose about human and environmental rights should include information about forced labour , conflict minerals and exposure to environmental risks , including industrial emissions , industrial pollution and accidents in their supply and value chains. 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. these requirements should also take into account the european convention on human rights and its additional protocols and international environmental and human rights principles and instruments such as the unece convention on access to information , public participation in decision making and access to justice in environmental matters (aarhus convention) , resolution 48/13 adopted by the human rights council on 8 october 2021 on the human right to a clean , healthy and sustainable environment , as well as international climate commitments , especially those outlined in the 2018 ipcc special report on 1.5 degrees.