While using the Annex II Template is not mandatory until next January, it is considered best practice given the value of comparable and reliable company reported data to achieve green investment goals. It is clear, though, that we have a way to go.
Beyond the EU Taxonomy, corporate disclosure takes center stage
The emphasis on robust corporate ESG disclosure as a paramount mechanism to clamp down on greenwashing is not limited to the EU Taxonomy.
During Bloomberg’s event, Sustainable Finance in 2022: Putting Europe’s Ambition into Practice, the European Commission’s head of sustainable finance, Martin Spolc, said, "On the Corporate Sustainability Reporting Disclosure, CSRD, we are trying to address one of the biggest challenges that the financial sector has, which is lack of data. This piece of law will bring the needed transparency and greater disclosures by the corporates."
CSRD is a draft EU legislation which lays the foundation for sustainability disclosures based on a consistent reporting structure for all large EU companies and all listed companies on an EU regulated market. This need for standardization is compounded by the European Financial Reporting Advisory Group’s (EFRAG) recent publication of their first set of draft standards which sets out the European Sustainability Reporting Standards (ESRS).
"The SEC proposal would require domestic and foreign registrants to include certain climate-related information in statements and periodic reports including data around climate-related risks."