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


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process implemented with regard to sustainability matters in particular regarding human rights , social rights , rule of law and good governance systems and environmental due diligence along the entire supply and value chain , in accordance with international and regional human rights conventions , guidelines and standards such as the un guiding principles on business and human rights , the oecd due diligence guidance for responsible business conduct , the international labour organisation (ilo) declaration on fundamental principles and rights at work , the ilo fundamental conventions and the charter of fundamental rights of the european union.


### (ii) the principal actual or potential adverse impacts connected with the undertaking’s value chain , including its own operations , its products and services , its business relationships and its supply chain; ### (ii) the principal actual or potential adverse impacts on sustainability matters connected with the undertaking’s value chain , as identified in the implementation of the due diligence strategy , including its own operations , its products , services and assets , its business relationships , its subsidiaries and its supply chain;


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


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


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


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


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


### complementary information that undertakings shall report with regard to the sustainability matters and reporting areas listed in article 19a(2) , where necessary; ### complementary information that undertakings shall report with regard to the sustainability matters and whether this information should relate to the company's direct operations and activities or those of its value and supply chain and reporting areas listed in article 19a(2) , where necessary. the level of detail regarding impacts within the value chain should be specified and may differ between economic activities. the reporting obligations within the value and supply chain should therefore be adapted to each economic activity and based on a risk analysis of potential impacts. the commission's delegated acts should provide the criteria for establishing this risk analysis ;


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


### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities; ### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities. with regards to the inclusion of a disability perspective , reporting should cover , inter alia , all management areas of the undertaking , data on employment , information on the accessibility measures that have been taken to give response to the different types of disabilities identified , employee satisfaction surveys to measure the relative satisfaction of employees with disabilities compared to those without , and awareness-raising campaigns.


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


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) working conditions , including secure employment , adequacy of wages in allowing workers a decent standard of living , social dialogue , freedom of association , collective bargaining and the information , consultation and participation rights of workers , work-life balance , and health and safety , the rate of workers who have been injured at work , and just transition measures adopted through social dialogue;


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


### equal opportunities for all , including gender equality and equal pay for equal work , training and skills development , and employment and inclusion of people with disabilities; ### equal treatment and opportunities for all , including gender equality and equal pay for work of equal value , pay transparency , training and skills development , in particular the rate of workers participating in training disaggregated by gender , employment and inclusion of people with disabilities , gender equality in management positions and measures against harassment in the workplace;


### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , and a healthy , safe and well-adapted work environment; ### (ii) working conditions , including secure and adaptable employment , wages , social dialogue , collective bargaining and the involvement of workers , work-life balance , including adaptable working hours , parental leave , and the possibility of teleworking and a healthy , safe and well-adapted work environment free from discrimination and harassment;


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


### (ii) business ethics and corporate culture , including anti-corruption and anti-bribery; ### (ii) business ethics and corporate culture , including , anti-corruption , anti-bribery , anti-discrimination and anti-harassment;


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


### the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , and is represented in a faithful manner. ### the sustainability reporting standards referred to in paragraph 1 shall require that the information to be reported is understandable , relevant , representative , verifiable , comparable , and is represented in a faithful manner. they shall therefore integrate disclosures on both risks and opportunities related to sustainability , be comprehensive by taking into account the entire scope of responsibility regarding the value chain of the company , including suppliers and sub-contractors , provide both quantitative and qualitative information , apply a sector-specific approach , and provide information with time and sector comparison.


### (iv) resource use and circular economy; ### (iv) the transition to a circular economy , including resource use;


### article 19c ### deleted


### sustainability reporting standards for smes ### sustainability reporting standards for smes


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


### the commission shall adopt those delegated acts at the latest by 31 october 2023. ### deleted


### (ii) information that undertakings shall report that is specific to the sector in which they operate. ### (ii) information that undertakings shall report that is specific to the sector in which they operate. standards for undertakings operating in high risk sectors shall be adopted as a priority.


### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards. ### the commission shall , at least every three years after its date of application , review any delegated act adopted pursuant to this article , taking into consideration the technical advice of the european financial reporting advisory group (efrag) , and where necessary shall amend such delegated act to take into account relevant developments , including developments with regard to international standards. in addition , the commission shall carry out a one-off review of the aforementioned delegated acts following the adoption of the upcoming legislation on corporate due diligence.


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


### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters , and their composition; ### the role of the undertaking’s administrative , management and supervisory bodies , including with regard to sustainability matters and proper implementation of the due diligence strategy , and their composition;


### (ii) business ethics and corporate culture , including anti-corruption and anti-bribery; ### (ii) business ethics and corporate culture , including anti-corruption , anti-bribery , anti-workplace violence , anti-harassment and internal arrangements within the undertaking for protecting whistleblowers;


### the undertaking’s internal control and risk management systems , including in relation to the undertaking’s reporting process. ### the undertaking’s internal control and risk management systems , including in relation to the undertaking’s reporting process and implementation of the due diligence strategy.


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


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


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


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


### (iii) the plans of the group to ensure that the group’s business model and strategy compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement; ### (iii) the plans of the group including a transition plan with implementing actions and related financial and investment plans , to ensure that its business model and strategy aligned with the intermediate objectives for 2030 and 2040 laid out in the european climate law - regulation (eu) 2021/1119 and with the objective to achieve carbon neutrality by 2050 at the latest and compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement taking into account the entire value chain; and where relevant the degree of exposure of the undertaking to sectors listed in divisions 05 , 06 ,09 ,19 , 35 , 46.71 , 73.1 of annex i to regulation (ec) no 1893/2006 insofar as they relate to coal , oil , gas-related activities.


### (iii) the plans of the group to ensure that the group’s business model and strategy compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement; ### (iii) the plans of the group including a pathway comprising of short-term and medium-term absolute emission reduction targets for 2025 and 2030 , and reviewed every five years thereafter , to achieve climate neutrality by 2050 at the latest , and implementing actions and related financial and investment plans to ensure that the group’s business model and strategy compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °c in line with the paris agreement;


### a description of the targets related to sustainability matters set by the group and of the progress of the undertaking towards achieving them; ### a description of the time-bound short-term , mid-term and long-term targets set by the group for the main impacts of its business model on sustainability matters , whether such targets are science-based and of the progress the undertaking has made towards achieving those targets


### indicators relevant to the relevant to the disclosures referred to in points (a) to (f). ### indicators relevant to the relevant to the disclosures referred to in points (a) to (f) including performance indicators set out in the delegated act supplementing article 8 of the regulation (eu) 2020/852.


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


### 1. parent undertakings of a large group shall include in the consolidated management report information necessary to understand the group's impacts on sustainability matters , and information necessary to understand how sustainability matters affect the group's development , performance and position. ### 1. parent undertakings of a large group shall include in the consolidated management report information necessary to understand the group's impacts on sustainability matters , and information necessary to understand how sustainability matters affect the group's development , performance and position. this information shall be published in a specific section of the management report and in a format equivalent to , and compatible with , that laid down for the publication of the financial statements.


### how the group’s strategy has been implemented with regard to sustainability matters; ### how the group’s strategy has been implemented with regard to sustainability matters including the group's measures to ensure decent work , fair wages , training and further education for workers , information and consultation of workers;


### the due diligence process implemented with regard to sustainability matters; ### the due diligence process implemented with regard to sustainability matters , in particular regarding human rights , social rights , rule of law and good governance systems and environmental due diligence along the entire supply and value chain , in accordance with international and regional human rights conventions , guidelines and standards such as the un guiding principles on business and human rights , the oecd due diligence guidance for responsible business conduct , the international labour organisation (ilo) declaration on fundamental principles and rights at work , the ilo fundamental conventions and the charter of fundamental rights of the european union.


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


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


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


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


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


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


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


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


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


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


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


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


### member states may , however , exempt undertakings from the obligation to publish the management report where a copy of all or part of any such report can be easily obtained upon request at a price not exceeding its administrative cost.’ ### deleted


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


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


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


### (cc) sustainability reporting standards;; ### (cc) sustainability reporting standards as referred to in article 19b of directive 2013/34/eu;


### 1. stresses the valuable role played by union agencies in helping union institutions to implement policies , especially by carrying out specific technical , scientific and managerial tasks; appreciates the high quality work performed by the agencies working in the area of employment , social affairs and inclusion; ### 1. stresses the valuable role played by union agencies in helping union institutions to design and implement policies , especially for specific technical , scientific , operational or regulatory tasks; appreciates the high quality work performed by the agencies working in the area of employment , social affairs and inclusion;


### 4. welcomes the deepened cooperation between the agencies within the framework of the european union agencies network (euan) with a focus on sharing services , knowledge and expertise; ### 4. welcomes the deepened cooperation between the agencies within the framework of the european union agencies network (euan) which is an important inter-agency cooperation platform to enhance agencies’ visibility , identify and promote possible efficiency gains , add value and ensure efficient communication between the agencies and relevant stakeholders with a focus on sharing services , knowledge and expertise; appreciates and encourages the close collaboration among the agencies under the remit of the committee on employment and social affairs in order to ensure synergies , complementarity and sharing resources;


### 5. notes that two observations regarding budget management and one regarding procurement procedures were made to cedefop; notes that two observations regarding internal controls and one on procurement procedures were made to eurofound; notes that one observation on internal controls was made to etf; ### 5. notes that two observations regarding budget management and one regarding procurement procedures were made to cedefop; notes that two observations regarding internal controls and one on procurement procedures were made to eurofound; notes that one observation on internal controls was made to etf; urges eu agencies to improve their public procurement procedures with a view to compliance with applicable rules and as a result , the achievement of the most economically advantageous purchases , while respecting the principles of transparency , proportionality , equal treatment and non-discrimination;


### 2. stresses that the court found that the payments underlying the accounts were legal and regular for all agencies except for eu-lisa , for which a qualified opinion was issued because of two payments that were not compliant with the provisions of framework contracts , amounting in total to eur 10 405 074 , representing 4 ,1 % of the total payment appropriations available in 2020; acknowledges eu-lisa's reply that the largest irregular payment was connected to an administrative omission concerning the acquisition of a different software from the one offered by the contractor in the tender for the associated framework contract; notes , furthermore , that the need to change one of the auxiliary software products used in the operation of the shared biometric matching system (sbms) was of a pure operational nature , with the purpose of reducing the duplication of training and support efforts , ultimately reducing the overall operational costs for eu-lisa; underlines that following the issuance of the court observation , eu-lisa responded promptly , signing an amendment to the framework contract in order to rectify the initial omission; ### 2. stresses that the court found that the payments underlying the accounts were legal and regular for all agencies except for eu-lisa , for which a qualified opinion was issued because of two payments that were not compliant with the provisions of framework contracts , amounting in total to eur 10 405 074 , representing 4 ,1 % of the total payment appropriations available in 2020; acknowledges eu-lisa's reply that the largest irregular payment was connected to a specific contract concerning the acquisition of a different software from the one offered by the contractor in the tender for the associated framework contract and that it was a matter of pure administrative nature that eu-lisa did not amend the relevant framework contract on time; notes , furthermore , that the need to change one of the auxiliary software products used in the operation of the shared biometric matching system (sbms) was of a pure operational nature , with the purpose of reducing the duplication of training and support efforts , ultimately reducing the overall operational costs for eu-lisa; underlines that following the issuance of the court observation , eu-lisa responded promptly , signing an amendment to the framework contract in order to rectify the initial omission;


### 15. notes the court’s observation related to the contributions from associated countries where different methods in the agreements for calculating contributions entail a risk of erroneous implementation of those contribution agreements; notes the court’s invitation to the agencies concerned to consult the commission to assess whether they need to align with the commission contributions agreements and methods of calculation for the contributions of associated countries; ### 15. notes the court’s observation related to the contributions from associated countries where different methods in the agreements for calculating contributions entail a risk of erroneous implementation of those contribution agreements; notes the court’s invitation to the agencies concerned to consult the commission to assess whether they need to align with the commission contributions agreements and methods of calculation for the contributions of associated countries; stresses the need for horizontal guidance from the commission to union bodies on how to calculate contributions from third countries;


### a. non-profit organisations (npos) are increasingly involved in economic activities and contribute to the rapid development of the social economy , bringing societal benefits in terms of citizens welfare , the fight against climate change , quality employment and the fight against social exclusion and discrimination; whereas the development of the social economy directly contributes to the strengthening of the single market; ### a. non-profit organisations (npos) are increasingly involved in economic activities and contribute to the rapid development of the social economy including by engaging with citizens to better understand their needs and empower them , bringing societal benefits in terms of citizens welfare , the fight against climate change , quality and inclusive employment at local , national and european level , including for persons with disabilities and persons belonging to marginalised communities and the fight against social exclusion and discrimination; whereas the development of the social economy directly contributes to the strengthening of the single market;


### b. npos play a central role in democracy by exercising public oversight over political power , articulating aspirations present in society , carrying out advocacy , contributing to informed policy-making and fostering active citizenship; ### b. npos play a central role in democracy by exercising public oversight over political power , articulating and relaying aspirations and interests present in society , carrying out advocacy , contributing to informed policy-making with their expertise and knowledge of the ground and fostering active and responsible citizenship leading to increased public debate and pluralism in society; whereas , to this end , civil society organisations must benefit from an enabling environment that allows them to thrive throughout the union;


### c. article 11 teu acknowledges the role of npos in democratic life; ### c. article 11 teu acknowledges the role of npos in democratic life and specifies that institutions shall give citizens and representative associations the opportunity to make known and publicly exchange their views in all areas of union action , and that institutions shall maintain an open , transparent and regular dialogue with representative associations and civil society;


### d. article 12 of the charter of fundamental rights guarantees the right to freedom of association at all levels; ### d. article 12 of the charter of fundamental rights guarantees the right to freedom of association at all levels; whereas , according to the case-law of the european court of human rights , freedom of association constitutes one of the essential bases of a democratic and pluralist society , inasmuch as it allows citizens to act collectively in fields of mutual interest; whereas barriers to the development of cross-border civic action are of a nature as to significantly limit the attainment of this objective


### e. restrictions of the space in which they operate have been reported by npos throughout the union , related to the regulatory environment under which they operate , their finances and funding , their right to participation and to an unsafe environment with increasing attacks , including negative discourse stigmatising npos; ### e. restrictions of civic space have been reported by npos throughout the union , related to the regulatory environment under which they operate with (changes in) legislation that affect their work , their finances and funding , their right to participation with increasing difficulties in accessing decision-makers and providing input into law- and policy-making and to an unsafe environment with increasing attacks and harassment , including negative discourse aimed at delegitimising and stigmatising npos;


### 2. emphasises that the current legal framework at union and national level is insufficient to support a strong pan-european civil society , the existence of which is necessary for democracy; thus , identifies the need to introduce a new legal form , namely that of european association , including rules on its establishment , and governance; ### 2. emphasises that the current legal framework at union and national level is insufficient to support a strong pan-european civil society , the existence of which is necessary for democracy; thus , identifies the need to introduce a new legal form , namely that of european association , including rules on its establishment , transparency and accountability and governance;


### f. in its judgment in case c-78/181 , the court of justice held that freedom of association does not only include the ability to create or dissolve an association but also covers the possibility for that association to act in the meantime; ### f. the european court of human rights has recognized that the state has a positive obligation to secure the enjoyment of the right to freedom of association and found that “genuine and effective respect for freedom of association cannot be reduced to a mere duty on the part of the state not to interfere" , whereas in its judgment in case c-78/181 , the court of justice held that freedom of association does not only include the ability to create or dissolve an association but also covers the possibility for that association to act in the meantime;


### g. the court of justice of the european union has produced concrete case law2 on the principles of non-discrimination and free movement of capital applied to cross-border donations; whereas these principles are still not universally applied in member states and the commission has not put forward positive steps to address this. ### g. the court of justice of the european union has produced concrete case law2 on the principles of non-discrimination and free movement of capital applied to cross-border donations and organisations established in another member state; whereas despite this guidance from the court , these principles are still not universally applied in member states and the commission has not put forward positive steps to address this at eu level.


### 3. considers that the long-overdue creation of a statute for european associations is a crucial step in fostering civic space at union level , cross-border cooperation and dialogue; points out that such a statute would help european civil society to structure itself; considers that european associations could be instrumental in enhancing civic participation in union policy-making; ### 3. considers that the long-overdue creation of a statute for european associations is a crucial step in fostering civic space at union level , cross-border cooperation and dialogue , exchanges between citizens and reflection on common history and values; points out that such a statute would help european civil society to structure itself , in particular by facilitating the development of european networks; considers that european associations could be instrumental in enhancing civic participation in union policy-making;


### 4. stresses that , in light of the growing number of threats which transcend national boundaries such as environmental damages , pandemics or the misuse of digital technologies , the potential of cross-border npo activities should be unlocked; emphasises that cross-border activities should both mean activities or cooperation carried out in more than one member state and activities furthering the union’s objectives or contributing to the promotion and safeguarding of its values; ### 4. stresses that , in light of the growing number of threats which transcend national boundaries such as environmental damages , pandemics or the misuse of digital technologies , the potential of cross-border npo activities should be unlocked in order for them to best harness their local , national and eu-level expertise so as to further strengthen their role in the protection and promotion of fundamental rights , the fight against discrimination and the support of citizens , especially marginalized and vulnerable people; emphasises that cross-border activities should both mean activities or cooperation carried out in more than one member state and activities furthering the union’s objectives or contributing to the promotion and safeguarding of its values;


### 6. considers that npos cannot thrive at union level if the space in which they operate is being restricted in a number of member states; considers therefore that the setting of common minimum standards will also help to provide a minimum level of protection throughout the union and to spread best practices; ### 6. considers that npos cannot thrive at union level if the space in which they operate is being eroded or deliberately restricted in a number of member states; considers therefore that the setting of common minimum standards for rules and procedures applying to npos will also help to provide a minimum level of protection throughout the union from national regulations or practices which affect freedom of association and to spread best practices; calls in particular for ensuring that reporting and transparency requirements imposed on npos respect the principles of necessity and proportionality so as to enable public scrutiny without imposing unduly burdensome requirements;


### 6. stresses that due to the lack of harmonisation , npos that operate across europe often face fees , formalities , and administrative and other hurdles , in particular when they rely on cross-border financing; ### 6. stresses that due to the lack of approximation of national practices , npos that operate across europe often face disproportionate fees , formalities , and administrative and other hurdles;


### 7. stresses that the lack of harmonisation also leads to an uneven playing field due to the different market conditions and other obstacles that npos face in different member states , for example when opening bank accounts , or hiring staff; ### 7. stresses that the lack of approximation of practices also leads to an uneven playing field due to the different market conditions and other obstacles that npos face in different member states , for example when opening bank accounts , hiring staff or accessing public benefit measures and schemes , or benefitting certain financial or tax treatment;


### 7. stresses that the lack of harmonisation also leads to an uneven playing field due to the different market conditions and other obstacles that npos face in different member states , for example when opening bank accounts , or hiring staff; ### 7. stresses that the current situation also leads to an uneven playing field due to the different market conditions and other obstacles that npos face in different member states , for example when opening bank accounts , or hiring staff;


### 9. emphasises that national bodies designated for the oversight of npos must be legally distinct and functionally independent of their respective governments. ### 9. emphasises that national bodies designated for the oversight of npos must be legally distinct and functionally independent of their respective governments and of any other public or private body.


### 9. asks the commission to create reliable and frequently updated statistical resources , to be included in eurostat; ### 9. asks the member states to regularly provide disaggregated data and the commission to create reliable and frequently updated statistical resources , to be included in eurostat on cross-border activities and contributions , especially with regard to the single market for philanthropy;


### 10. regrets that the commission and the member states have not brought forward legislation to harmonise the situation of associations and npos throughout the eu nor established a statute for a european association despite several attempts , and numerous calls by civil society; ### 10. regrets that the commission and the member states have not brought guidance to ensure free flow of capital and freedom of association to strengthen the situation of associations and npos throughout the eu nor established a statute for a european association despite several attempts , and numerous calls by civil society;


### 10. regrets that the commission and the member states have not brought forward legislation to harmonise the situation of associations and npos throughout the eu nor established a statute for a european association despite several attempts , and numerous calls by civil society; ### 10. regrets that the commission and the member states have not brought forward legislation to ensure free flow of capital and freedom of association for associations and npos throughout the eu nor established a statute for a european association despite several attempts , and numerous calls by civil society;


### 11. considers that , as only certain associations and npos are operating in the social economy , the upcoming social economy action plan , while very much welcomed , needs to be complemented by separate legislative initiatives to cover all associations; ### 11. considers that the upcoming social economy action plan , needs to include recommendations on how to overcome barriers of cross-border giving


### 12. considers that , due to their particular character , the proposed legal instruments are to refrain from regulating political parties; furthermore , recalls that the union respects the status of churches , religious organisations or communities , as well as philosophical or non-confessional organisations under national law; underlines that this does not preclude organisations that only draw from a religious , philosophical or non-confessional inspiration such as faith-based charitable npos , from benefitting from the scope of these proposals; points out that trade unions in several member states are given a special beneficial status and should therefore be given a choice to make use of the provisions under the proposed instruments; ### 12. considers that , due to their particular character , the proposed legal instruments shall not have an impact on the regulation of political parties; furthermore , recalls that the union respects the status of churches , religious organisations or communities , as well as philosophical or non-confessional organisations under national law; underlines that this does not preclude organisations that only draw from a religious , philosophical or non-confessional inspiration such as faith-based charitable npos , from benefitting from the scope of these proposals; points out that trade unions in several member states are given a special beneficial status and should therefore be given a choice to make use of the provisions under the proposed instruments;


### 15. emphasizes that npos are instrumental for democracy and policy making at all levels; condemns attempts to depoliticise npos , such as by refusing or challenging their status as public benefit organisation where their activities are not meant to benefit one particular party; ### 15. emphasizes that npos are instrumental for democracy and policy making at all levels; reiterates that npos have the freedom of participating in matters of political or public debate through their objectives or activities;


### 16. maintains that regulation will only benefit european civil society if npos can make use of adequate and easily accessible funding both at national and at european level; points out that public financing of npos , is important since they have less access to income from profit-making activities; points out that the own funds requirement should be limited and non-monetary contributions of npos counted as such. ### 16. maintains that regulation will only benefit european civil society if npos can make use of adequate and easily accessible funding both at national and at european level; points out that public financing of npos , is important since they have less access to income from profit-making activities; points out that the own funds requirement should be limited and non-monetary contributions of npos counted as such; points out however that it is equally important for npos to provide relevant information to the public; further reminds that increasing transparency in respect of financing is to be considered an overriding reason in the public interest where civil society organisations have a significant influence on public life and public debate , warranting such financing to be subject to measures intended to ensure its transparency , rather than applying transparency measures indiscriminately , as pointed out by the court of justice of the european union1a.


### 16. maintains that regulation will only benefit european civil society if npos can make use of adequate and easily accessible funding both at national and at european level; points out that public financing of npos , is important since they have less access to income from profit-making activities; points out that the own funds requirement should be limited and non-monetary contributions of npos counted as such. ### 16. maintains that regulation will only benefit european civil society if npos can make use of adequate and easily accessible funding both at national and at european level; points out that public financing , as well as private financing , of npos , is important since they have less access to income from profit-making activities; points out that the own funds requirement should be limited and non-monetary contributions of npos counted as such.


### 18. calls on the commission to recognise and promote the public benefit activities of associations and npos by harmonising the public benefit status across the eu , also with regard to tax benefits for them and their benefactors , where such benefits exist under national legislation; ### 18. calls on the commission to recognise and promote the public benefit activities of associations and npos by streamlining the public benefit status across the eu , also with regard to tax benefits for them and their benefactors , where such benefits exist under national legislation;


### (2) european cooperation across borders between citizens and representative associations is essential for creating an overarching european civil society , which is an important element of european democracy and european integration in line with article 11 and article 15 of the treaty on european union. ### (2) european cooperation across borders between citizens and representative associations is essential for creating an overarching european civil society and fostering free and active citizenship , which is an important element of european democracy and european integration in line with article 11 and article 15 of the treaty on european union.


### (4) directive .../... of the european parliament and of the council (the ‘minimum standards directive’) is aimed at approximating the laws of the member states to provide minimum standards and an enabling environment , which facilitates non-profit organisations in carrying out their work. ### (4) directive .../... of the european parliament and of the council (the ‘minimum standards directive’) is aimed at approximating the laws of the member states to provide minimum standards and protection an enabling environment , which facilitates non-profit organisations in carrying out their work and exchanging best practices.


### (8) according to the judgment of the court of justice1 , article 63 of the treaty on the functioning of the european union (tfeu) and articles 7 , 8 and 12 of the charter of fundamental rights of the european union (the ‘charter’) protect non-profit organisations against discriminatory , unnecessary and unjustified restrictions to access to resources and the free movement of capital within the union . this also concerns the ability to seek , secure and use resources of both domestic and foreign origin , which is essential to the existence and operation of any legal entity. restrictions can be imposed for legitimate aims , such as in the interests of national security , public safety or public order , but should be proportionate to the objective of protecting such interests , and the least intrusive means of achieving the desired objective. this concerns , among others , restrictions deriving from rules on combating money laundering and terrorist financing , which are applied in accordance with the principles of necessity and proportionality , having regard in particular to risk-assessment obligations under international and union law. therefore , member states cannot apply unreasonable , overly intrusive or disruptive measures , including reporting requirements placing an excessive or costly burden on organisations. ### (8) according to the judgment of the court of justice1 , article 63 of the treaty on the functioning of the european union (tfeu) and articles 7 , 8 and 12 of the charter of fundamental rights of the european union (the ‘charter’) protect non-profit organisations against discriminatory , unnecessary and unjustified restrictions to access to resources and the free movement of capital within the union . this also concerns the ability to seek , secure and use resources of both domestic and foreign origin , which is essential to the existence and operation of any legal entity. restrictions can be imposed for legitimate aims , such as in the interests of national security , public safety or public order , but should be proportionate to the objective of protecting such interests , and the least intrusive means of achieving the desired objective. this concerns , among others , restrictions deriving from rules on combating money laundering and terrorist financing , which are applied in accordance with the principles of necessity and proportionality , having regard in particular to risk-assessment obligations under international and union law. therefore , member states cannot apply unreasonable , overly intrusive or disruptive measures , placing an excessive or costly burden on organisations.


### (13) a european association might wish to distinguish between different categories of members , in order to grant voting rights only to full members , while acknowledging associated members that support the cause , without the right to vote , and/or honorary members exempt from the obligation of paying a membership fee , but with voting rights. the categorisation of members should not lead to unjustified discrimination , in particular on the basis of citizenship. ### (13) a european association might wish to distinguish between different categories of members , in order to grant voting rights only to full members , while acknowledging associated members that support the cause , without the right to vote , and/or honorary members exempt from the obligation of paying a membership fee , but with voting rights. the categorisation of members should not lead to unjustified discrimination , in particular on the basis of citizenship or country of registered office.


### 6. ‘member’ means a person that voluntarily and intentionally applied to join an association to support its objectives and activities , and that was admitted into the association based on that association’s statutes. where an association is formed as the result of conversion or merger , the willingness of membership can be conclusively assumed. ### 6. ‘member’ means a natural or legal person that voluntarily and intentionally applied to join an association to support its objectives and activities , and that was admitted into the association based on that association’s statutes. where an association is formed as the result of conversion or merger , the willingness of membership can be conclusively assumed.


### 1. a european associations authority () shall hereby be established. ### 1. a european associations authority () shall hereby be designated under the auspices of the european commission or the fundamental rights agency.


### 2. the european associations authority shall be established as a body of the union and shall have legal personality. ### 2. the european associations authority shall be designated as a body of the union and shall have legal personality.


### 4. the european associations authority shall be composed of the head of the competent supervisory authority of each member state , or their respective representatives , two members representing european civil society , and two members representing academia. where more than one supervisory authority is responsible in a member state for supervising the application of this regulation , a joint representative shall be appointed in accordance with that member state’s law. ### 4. the european associations authority shall be composed of the head of the competent supervisory authority of each member state , or their respective representatives and three representatives appointed by the european commission. where more than one supervisory authority is responsible in a member state for supervising the application of this regulation , a joint representative shall be appointed in accordance with that member state’s law.


### 7. the commission and the european parliament shall have the right to participate in the activities and meetings of the european associations authority , without voting rights. the commission shall designate up to two representatives , the parliament shall designate up to five representatives. ### 7. the european associations authority shall be accountable to the european parliament and to the council.


### the conditions and procedures for the admission , expulsion and resignation of members; ### the conditions and procedures for the admission , suspension , expulsion and resignation of members;


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


### 2. the board shall be elected by the general assembly , in accordance with the statutes. ### 2. the board shall be elected by the general assembly , in accordance with the statutes. information on the composition of the board shall be made available within 6 months from the date of the election to the national supervisory authority , which shall inform the european associations authority. any further changes to the composition shall be reflected within the same provision. such information shall be made publicly available by the european association.


### 7. the board shall , once a year , draw up a report on the accounts and activities of the european association , which it shall transmit to the national supervisory authority and to the european associations authority. such annual report shall also be made publicly available by the european association. ### 7. the board shall , once a year , draw up a report on the activities of the european association , which it shall transmit to the national supervisory authority and to the european associations authority. such annual report shall also be made publicly available by the european association.


### 8. every member shall have the right to participate in the general assembly , to speak and to submit motions. ### 8. every member shall have the right to participate in the general assembly and to speak.


### 9. members’ right to vote in the general assembly shall be exercised in accordance with the european association’s statutes. ### 9. members’ right to vote and to submit motions in the general assembly shall be exercised in accordance with the european association’s statutes.


### 11. decisions by the general assembly on ordinary matters shall be taken as a rule by a majority of the votes of the members present or represented. each member shall have one vote. ### 11. decisions by the general assembly on ordinary matters shall be taken as a rule by a majority of the votes of the members present or represented. the distribution of votes would be performed in a fair manner , in accordance with the rules set in the european association’s statutes.


### education and training; ### education , training and youth involvement;


### the information referred to in the first subparagraph shall accompany the annual report on the activities and foreseeable prospects of the european association’s affairs that the board shall transmit to the national supervisory authority and the european associations authority pursuant to article 14(7) of this regulation. ### the information referred to in the first subparagraph shall accompany the annual report on the activities and the annual report on accounts and financing and foreseeable prospects of the european association’s affairs that the board shall transmit to the national supervisory authority and the european associations authority pursuant to article 14(7) , (7a) of this regulation.


### 3. the european associations authority shall review the recommendation communicated pursuant to paragraph 3 within 30 calendar days. following such review , if it disagrees with the recommendation , the european association authority may refer it back to the supervisory authority with recommendations to reconsider. ### 3. the european associations authority shall review the recommendation communicated pursuant to paragraph 3 within 30 calendar days. following such review , if it disagrees with the recommendation , the european association authority may refer it back to the supervisory authority with reasoned recommendations.


### (3) non-profit organizations make a key contribution to the achievement of goals that are in the public interest and to achieve the union’s objectives , including by promoting active participation in the economic and democratic life of our societies. ### (3) non-profit organizations including philanthropic organisations make a key contribution to the achievement of goals that are in the public interest and to achieve the union’s objectives , including by promoting active participation in the economic and democratic life of our societies.


### (11) it is necessary at union level to build on existing standards and guidance to establish minimum standards for non-profit organisations , aimed at ensuring a uniform level of protection and a level playing field for all non-profit organisations established in the union , in order to secure an enabling environment in which these organisations can contribute without hindrances to the functioning of the internal market. ### (11) it is necessary at union level to build on existing standards and guidance to establish minimum standards in line with the freedom of association and the free flow of capital , for non-profit organisations , aimed at ensuring a uniform level of protection and a level playing field for all non-profit organisations established in the union , in order to secure an enabling environment in which these organisations can contribute without hindrances to the functioning of the internal market.


### (12) this directive approximates the laws of the member states as regards certain aspects of the formation , registration , operations , financing and cross-border activities of non-profit organisations. ### (12) this directive approximates the laws of the member states as regards certain aspects of the formation , registration , operations , financing , reporting and cross-border activities of non-profit organisations.


### (27) non-profit organisations should have the freedom to seek , receive and use financial , material and human resources , whether domestic , foreign or international , for the pursuit of their activities. non-profit organisations across the union have reported increasingly difficult access to resources including public funding and there are concerns in an increasing number of member states as regards the proportionality of strict rules being adopted on non-profit organisations’ access to foreign funding. it is therefore necessary to establish principles and standards on non-profit organisations’ financing , including as regards access to and use of private resources and public funding , the pursuit of economic activities and the obligation not to unduly restrict cross-border financing in line with treaty rules on free movement of capital. ### (27) non-profit organisations should have the freedom to seek , receive and use financial , material and human resources , whether domestic , foreign or international , for the pursuit of their activities. non-profit organisations across the union have reported increasingly difficult access to resources including public funding and there are concerns in an increasing number of member states as regards the proportionality of strict rules being adopted on non-profit organisations’ access to foreign funding. philanthropic organizations have further reported difficulties in providing donations or grants in some cases. it is therefore necessary to establish principles and standards on non-profit organisations’ financing , including as regards access to and use of private resources and public funding , the pursuit of economic activities and the obligation not to unduly restrict cross-border financing in line with treaty rules on free movement of capital , so that national legislation and eu policy facilitates cross-border philanthropy in line with eu fundamental rights and free flow of capital.


### (27) non-profit organisations should have the freedom to seek , receive and use financial , material and human resources , whether domestic , foreign or international , for the pursuit of their activities. non-profit organisations across the union have reported increasingly difficult access to resources including public funding and there are concerns in an increasing number of member states as regards the proportionality of strict rules being adopted on non-profit organisations’ access to foreign funding. it is therefore necessary to establish principles and standards on non-profit organisations’ financing , including as regards access to and use of private resources and public funding , the pursuit of economic activities and the obligation not to unduly restrict cross-border financing in line with treaty rules on free movement of capital. ### (27) non-profit organisations should have the freedom to seek , receive and use financial , material and human resources , whether domestic , foreign or international , for the pursuit of their activities. non-profit organisations across the union have reported increasingly difficult access to resources including public funding and there are concerns in an increasing number of member states as regards the proportionality of strict rules being adopted on non-profit organisations’ access to foreign funding. philanthropic organisations have reported about difficulties to donate and grant to other npos in some cases. it is therefore necessary to establish principles and standards on non-profit organisations’ financing , including as regards access to and use of private resources and public funding , the pursuit of economic activities and the obligation not to unduly restrict cross-border financing in line with treaty rules on free movement of capital. national laws and eu policy should facilitate cross-border philanthropy in line with eu fundamental rights and free flow of capital.


### (28) according to the judgment of the court of justice of 18 june 2020 in case c-78/18 , european commission v hungary11 , article 63 of the treaty on the functioning of the european union (tfeu) and articles 7 , 8 and 12 of the charter of fundamental rights of the european union (the ‘charter’) protect non-profit organisations against discriminatory , unnecessary and unjustified restrictions to access to resources and the free movement of capital within the union . this also concerns the ability to seek , secure and use resources of both domestic and foreign origin , which is essential to the existence and operation of any legal entity. restrictions can be imposed for legitimate aims , such as in the interests of national security , public safety or public order , but should be proportionate to the objective of protecting such interests , and the least intrusive means of achieving the desired objective. this concerns , among others , restrictions deriving from rules on combating money laundering and terrorist financing , which are applied in accordance with the principles of necessity and proportionality , having regard in particular to risk-assessment obligations under international and union law. therefore , member states should not apply unreasonable , overly intrusive or disruptive measures , including reporting requirements placing an excessive or costly burden on organisations. ### (28) according to the judgment of the court of justice of 18 june 2020 in case c-78/18 , european commission v hungary11 , article 63 of the treaty on the functioning of the european union (tfeu) and articles 7 , 8 and 12 of the charter of fundamental rights of the european union (the ‘charter’) protect non-profit organisations against discriminatory , unnecessary and unjustified restrictions to access to resources and the free movement of capital within the union . this also concerns the ability to seek , secure and use resources of both domestic and foreign origin , which is essential to the existence and operation of any legal entity. cross-border philanthropy must not be restricted by so called foreign funding restrictions or discriminatory national tax laws restrictions can be imposed for legitimate aims , such as in the interests of national security , public safety or public order , but should be proportionate to the objective of protecting such interests , and the least intrusive means of achieving the desired objective. this concerns , among others , restrictions deriving from rules on combating money laundering and terrorist financing , which are applied in accordance with the principles of necessity and proportionality , having regard in particular to risk-assessment obligations under international and union law. therefore , member states should not apply unreasonable , overly intrusive or disruptive measures , including reporting requirements placing an excessive or costly burden on organisations. the european court of justice (ecj) recognised the application of the free movement of capital to philanthropic funds and continues to interpret the fundamental freedoms guaranteed under the european treaties along with ensuring that the principle of non-discrimination applies to donors and public benefit organisations in the eu. a series of ecj cases examined the tax treatment of public benefit entities and their donors , including: stauffer: c-386/04 centro di musicologia walter stauffer/finanzamt münchen für körperschaften [2006] ecr i-8203; hein-persche: c-318/07 hein persche/finanzamt lüdenscheid [2009] ecr i-359 and missionswerk: c-25/10missionswerk werner heukelbach ev/belgien [2011] 2 c.m.l.r. 35. but national laws continue to discriminate or imply costly and burdensome procedures which de facto keep national systems in conflict with eu law. the impact of the ecj cases on national level regulation and practices was analysed in the 2014efc/tge commissioned report on taxation of cross-border philanthropy in europe:http://efc.issuelab.org/resource/taxation-of-cross-border-philanthropy-in-europe-after-persche-and-stauffer-from-landlock-to-free-movement.html


### (28) according to the judgment of the court of justice of 18 june 2020 in case c-78/18 , european commission v hungary11 , article 63 of the treaty on the functioning of the european union (tfeu) and articles 7 , 8 and 12 of the charter of fundamental rights of the european union (the ‘charter’) protect non-profit organisations against discriminatory , unnecessary and unjustified restrictions to access to resources and the free movement of capital within the union . this also concerns the ability to seek , secure and use resources of both domestic and foreign origin , which is essential to the existence and operation of any legal entity. restrictions can be imposed for legitimate aims , such as in the interests of national security , public safety or public order , but should be proportionate to the objective of protecting such interests , and the least intrusive means of achieving the desired objective. this concerns , among others , restrictions deriving from rules on combating money laundering and terrorist financing , which are applied in accordance with the principles of necessity and proportionality , having regard in particular to risk-assessment obligations under international and union law. therefore , member states should not apply unreasonable , overly intrusive or disruptive measures , including reporting requirements placing an excessive or costly burden on organisations. ### (28) according to the judgment of the court of justice of 18 june 2020 in case c-78/18 , european commission v hungary11 , article 63 of the treaty on the functioning of the european union (tfeu) and articles 7 , 8 and 12 of the charter of fundamental rights of the european union (the ‘charter’) protect non-profit organisations against discriminatory , unnecessary and unjustified restrictions to access to resources and the free movement of capital within the union . this also concerns the ability to seek , secure and use resources of both domestic and foreign origin , which is essential to the existence and operation of any legal entity. restrictions can be imposed for legitimate aims , such as in the interests of national security , public safety or public order , but should be proportionate to the objective of protecting such interests , and the least intrusive means of achieving the desired objective. this concerns , among others , restrictions deriving from rules on combating money laundering and terrorist financing , which are applied in accordance with the principles of necessity and proportionality , having regard in particular to risk-assessment obligations under international and union law. therefore , member states should not apply unreasonable , overly intrusive or disruptive measures , placing an excessive or costly burden on organisations. with a view of responding to the public interest in providing transparency , particularly with regard to organisations that have an influence on public life and public debate , they shall be subject to reporting and public disclosure obligations with regard to their governance representatives , provisions of the statutes and financing. such reporting and public disclosure obligations shall not lead to any limitation of the rights and obligations of the organisations


### this directive is aimed at providing a common set of measures for non-profit organisations established in the union in order to secure an enabling environment in which it is possible for these organisations to contribute to the functioning of the internal market. it approximates the laws of the member states as regards certain aspects of the objectives and activities , registration , operations , financing and cross-border activities of non-profit organisations. ### this directive is aimed at providing a common set of measures for non-profit organisations established in the union in order to secure an enabling environment in which it is possible for these organisations to contribute to the functioning of the internal market. it approximates the laws of the member states as regards certain aspects of the objectives and activities , registration , operations , financing , reporting and cross-border activities of non-profit organisations.


### 1. this directive shall apply , to non-profit organisations established in the union. ### 1. this directive shall apply to non-profit organisations , including philanthropic organisations , established in the union.


### 1. member states shall ensure that no discrimination based on nationality derives from national laws , regulations or administrative practices regulating non-profit organisations , including their formation , registration , operations , financing and cross-border activities. ### 1. member states shall ensure that no discrimination based on nationality derives from national laws , regulations or administrative practices regulating non-profit organisations , including their formation , registration , operations , financing , financial and tax treatment or tax relief measures and cross-border activities.


### 1. member states shall ensure the simplification , to the extent possible , of national laws , regulations or administrative practices regulating the formation , registration , operations , financing and cross-border activities of non-profit organisations , in order to eliminate any obstacles which affect the ability of legal or natural persons or groups of such persons , regardless of their nationality , to establish , register or operate in its territory a non-profit organisation. ### 1. member states shall ensure the simplification , to the extent possible , of national laws , regulations or administrative practices regulating the formation , registration , operations , financing and cross-border activities of non-profit organisations , in order to eliminate any obstacles which affect the ability of legal or natural persons or groups of such persons , regardless of their nationality , to establish , register or operate in its territory a non-profit organisation , as for example to enable access to banking and financial services , as well as guarantee sage and secure channels for cross-border philanthropic donations and foundations asset allocations within but also outside the eu.


### 1. member states shall ensure the simplification , to the extent possible , of national laws , regulations or administrative practices regulating the formation , registration , operations , financing and cross-border activities of non-profit organisations , in order to eliminate any obstacles which affect the ability of legal or natural persons or groups of such persons , regardless of their nationality , to establish , register or operate in its territory a non-profit organisation. ### 1. member states shall ensure the simplification , to the extent possible , of national laws , regulations or administrative practices regulating the formation , registration , operations , financing , reporting obligations and cross-border activities of non-profit organisations , in order to eliminate any obstacles which affect the ability of legal or natural persons or groups of such persons , regardless of their nationality , to establish , register or operate in its territory a non-profit organisation.


### 1. member states shall take the measures necessary to ensure that the application of national laws , regulations or administrative practices regulating the formation , registration , operations , financing and cross-border activities of non-profit organisations established , registered or operating in its territory is undertaken by a designated regulatory authority whose powers and functions shall be clearly defined by law and exercised in accordance with the principle of good administration , including as regards the right to have one’s affairs handled impartially , fairly and within a reasonable time. ### 1. member states shall take the measures necessary to ensure that the application of national laws , regulations or administrative practices regulating the formation , registration , operations , financing , reporting obligations and cross-border activities of non-profit organisations established , registered or operating in its territory is undertaken by a designated regulatory authority whose powers and functions shall be clearly defined by law and exercised in accordance with the principle of good administration , including as regards the right to have one’s affairs handled impartially , fairly and within a reasonable time.


### 2. member states shall take the measures necessary to ensure that non-profit organisations found to be in violation of national laws , regulations or administrative practices regulating the formation , registration , operations , financing and cross-border activities of non-profit organisations be provided with adequate notice about the alleged violation and be given ample opportunity to correct infractions of an administrative nature. ### 2. member states shall take the measures necessary to ensure that non-profit organisations found to be in violation of national laws , regulations or administrative practices regulating the formation , registration , operations , financing and cross-border activities of non-profit organisations be provided with adequate notice about the alleged violation and be given opportunity to correct infractions of an administrative nature.