On 31st January 2022, the Climate Disclosure Standards Board (CDSB) was consolidated into the IFRS Foundation to support the work of the newly established International Sustainability Standards Board (ISSB). While this site and its resources remain relevant for preparers looking to improve sustainability disclosure until such time as the ISSB issues its IFRS Sustainability Disclosure Standards on such topics, no further work or guidance will be produced or published by CDSB. For further information please visit the IFRS website.

Final approval of the EU Taxonomy: a key step towards more transparency on sustainable investments

CDSB welcomes the final adoption of the EU Taxonomy Regulation after this week’s vote in the European Parliament.

European Commission flag

The EU taxonomy is a significant step to increase transparency and provide clear definitions of sustainable investments. It will pave the way for a mainstreaming of sustainable finance ahead of the adoption of the renewed sustainable finance strategy later this year 

The EU taxonomy includes disclosure requirements for large companies which will be required to report the share of taxonomy-aligned activities of their turnovercapital or operating expenditure. These companies are also covered by the Non-Financial Reporting Directiveis currently under review.  

As the European Commission undertakes the revision of non-financial reporting requirements, we remain convinced that further transparency as well as policy coherence between the various legislative requirements should remain a top priority to ensure comparable, consistent and decision-useful information for investors.  

CDSB will continue engaging and providing evidence to support the European institutions to reach that common goal.