Europe's Sustainable Change Europe's Sustainable Change WHAT The European Union (EU) has emerged as a global leader in setting standards for future sustainability. As a strong sign of this, the EU committed itself to the Sustainable Development Goals (SDGs) as part of the UN 2030 Agenda for Sustainable Development. The focus of the UN Agenda is mainly on three pillars – Environmental, Social and Governance. As part of this commitment, the launch of the European Green Deal put in place policies that aim to make the EU climate neutral by 2050. This includes the integration of ESG into every investment and finance process within the European Union. The European Green Deal Investment Plan (EGDIP) will “mobilise at least € 1 trillion in sustainable investments over the next decade“ in line with this commitment. To increase transparency, provide tools for investors to identify sustainable investment opportunities and support the EU’s sustainable development, the European Commission implemented the following regulations within its sustainable finance action plan: The Taxonomy Regulation (EU 2020/852) establishes a common green classification system within the EU to determine which investments qualify as sustainable enabling companies to raise ESG funding and financial institutions to design green financial products. The draft Corporate Sustainability Reporting Directive (“CSRD”, COM/2021/189 final) requires companies to disclose all material information on its sustainability- related impacts, risks and opportunities. Sustainability information should be presented in the Sustainability Statements that are part of the management report in accordance with applicable European Sustainability Reporting Standards (ESRS) developed by EFRAC. WHO In terms of reporting, the following entities will need to report on both EU Taxonomy regulation and Environmental disclosures. Dates for compliance are shown at the bottom of this page. This includes: all large companies (whether they are an EU company, or an EU subsidiary of a non-EU company), all listed companies (except listed micro- enterprises); and large groups A large company is any business with two from three of a net turnover of more than €40 million,balance sheet assets greater than €20 million or more than 250 employees. WHEN From 1 January 2022, the Taxonomy Regulation applies. From 1 January 2024 large public-interest companies with more than 500 employees (who are already subject to the NFRD (Non-Financial Reporting Directive)) will need to report on their 2024 sustainability data. All large companies within the scope of the CSRD will be required to include sustainability reporting in their management report by 2026 using data covering the previous financial year. Listed SMEs as well as small and non-complex credit institutions and captive insurance undertakings within the scope will have a grace period until 1 January 2027 to comply. Visit us Moore Interaudit interaudit@moore.at Strubergasse 28 A-5020 Salzburg T +43 (662) 230 845