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Human rights

European Commission Takes Steps to Enhance Corporate Responsibility and Sustainability Reporting

Strategic Insights

— 2 min read

The European Commission has taken steps to address corporate responsibility and sustainability reporting by establishing frameworks such as Directive 2014/95/EU, which improves corporate disclosure of social and environmental information. The Commission has also introduced the directive 2022/2464 on Corporate Sustainability Reporting, which broadens the scope, mandates EU Sustainability Reporting Standards, and enhances consistency and comparability in non-financial reporting. Additionally, the directive 2024/1760 on corporate sustainability due diligence (CSDDD) sets clear expectations for large companies to identify and address adverse human rights and environmental impacts. The Commission regularly engages with stakeholders and takes their concerns into account in its policymaking.

Key Takeaways:

  • The European Commission has established frameworks such as Directive 2014/95/EU to improve corporate disclosure of social and environmental information.
  • The directive 2022/2464 on Corporate Sustainability Reporting broadens the scope, mandates EU Sustainability Reporting Standards, and enhances consistency and comparability in non-financial reporting.
  • The directive 2024/1760 on corporate sustainability due diligence (CSDDD) sets clear expectations for large companies to identify and address adverse human rights and environmental impacts.
  • The Commission requires companies to engage meaningfully with stakeholders, particularly with affected communities, as part of their due diligence.
  • The proposal COM (2025) 81 final aims to ensure that European companies contribute positively to sustainable development and respect for human rights and the environment globally.
  • The EU is currently implementing Human Rights and Civil Society projects for a total budget of 9,239,032 EUR, including activities specifically targeted to the city of Buenaventura.
  • The EU is following closely the situation in Buenaventura and regularly engages with authorities and civil society to promote respect of human rights and socioeconomic development.
  • The Commission is committed to simplifying, not weakening, directives related to due diligence, sustainability reporting, and taxonomy.

Statistics:

  • EU Sustainability Reporting Standards: mandated by directive 2022/2464.
  • Non-financial reporting: enhanced consistency and comparability by directive 2022/2464.
  • Adverse human rights and environmental impacts: addressed by directive 2024/1760 on corporate sustainability due diligence.
  • Total budget for Human Rights and Civil Society projects: 9,239,032 EUR.
  • Proposal for a directive amending 2006/43/EC, 2013/34/EU, 2022/2464, and 2024/1760: COM (2025) 81 final.

Sources:

  • Directive 2014/95/EU amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups.
  • Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC, and Directive 2013/34/EU, as regards corporate sustainability reporting.
  • Directive 2024/1760 on corporate sustainability due diligence.
  • Proposal for a directive amending 2006/43/EC, 2013/34/EU, 2022/2464, and 2024/1760 as regards as regards certain corporate sustainability reporting and due diligence requirements.

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