Pension funds to ‘benefit’ from EU deal on corporate sustainability reporting

The Pensioen Federatie in the Netherlands has welcomed the agreement on the Corporate Sustainability Reporting Directive (CSRD), stating that pension funds will benefit from the deal.

Negotiations between the European Parliament and the Council on the directive have concluded and new reporting requirements on sustainability will be imposed on companies.

The CSRD replaces the existing Non-Financial Reporting Directive and will apply to more firms.

Pensioen Federatie noted that the sustainability reports will contribute to the sustainable investment policy of pension funds and the implementation of their own European transparency rules under the Sustainable Finance Disclosure Regulation (SFDR).

The CSRD will not apply to pension funds as they already fall under the SFDR.

It mandates European Financial Reporting Advisory Group (EFRAG) for a European reporting standard for sustainability information.

Pensioen Federatie said it was pleased that the information needs of the pension sector under the SFDR was playing a “leading role” in the development of this standard, for which drafts are already available for consultation.

This includes data on the ‘principal adverse impact indicators’.

The federation noted that the rules provide a certain flexibility to determine which indicators are important enough for a company to report on, while pension funds under the SFDR must report on all investments.

It urged the Netherlands Authority for the Financial Markets to take into account the availability of data in its supervision on a ‘best effort’ basis.

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