An Overview of Corporate Sustainability Reporting Legislation in the European Union

Accounting in Europe, Forthcoming

77 Pages Posted: 30 Jan 2022 Last revised: 6 Feb 2024

See all articles by Katrin Hummel

Katrin Hummel

WU Vienna University of Economics and Business

Dominik Jobst

WU Vienna University of Economics and Business

Date Written: February 1, 2024

Abstract

In recent years, sustainability disclosure has increasingly become mandatory in many countries. The European Union (EU) is at the forefront of this change by adopting legislation that governs disclosure of (i) companies’ sustainability aspects (Corporate Sustainability Reporting Directive), (ii) the sustainability of economic activities (Taxonomy Regulation), (iii) the sustainability of financial products (Sustainable Finance Disclosure Regulation), and (iv) the environmental, social and governance risks of credit institutions (Pillar 3 disclosures). In addition, international standard setting for sustainability disclosure is at a rapid pace, and both the International Sustainability Standards Board and the European Commission have published reporting standards. Overall, these reporting mandates and standards are interconnected and rapidly progressing, which makes it increasingly difficult to keep track. The aim of this article is to outline and compare the EU’s sustainability disclosure legislation and major standard-setting initiatives and thus identify important implications for both researchers and practitioners.

Keywords: Sustainability Reporting Legislation, European Union, Non-Financial Reporting Directive, Taxonomy Regulation, Corporate Sustainability Reporting Directive

Suggested Citation

Hummel, Katrin and Jobst, Dominik, An Overview of Corporate Sustainability Reporting Legislation in the European Union (February 1, 2024). Accounting in Europe, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3978478 or http://dx.doi.org/10.2139/ssrn.3978478

Katrin Hummel (Contact Author)

WU Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, 1020
Austria

Dominik Jobst

WU Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, 1020
Austria

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