2022 climate-related disclosures: Gap analysis
The transition to a sustainable economy is one of the most important challenges facing our society today. This raises legitimate expectations about the evolution of the companies’ business models towards more sustainable and resilient ones.
To ensure transparent communication to their stakeholders on the aforementioned matter, since 2017, some sizeable issuers have been required to publish non-financial information under the NFRD. Starting from 2024 financial year, the CSRD will enter into force and issuers in its scope will have to report according to European Sustainability Reporting Standards (ESRS).
The new rules will ensure that investors and other stakeholders have access to the information they need to assess the impact of companies on people and the environment and to evaluate financial risks and opportunities arising from sustainability issues, including climate change.
[NB: “Non-financial” or “Sustainability” information is the terminology used respectively in the NFRD and CSRD. In this report, both terms are used without distinction.]
Objective of the review
In order to gain a preliminary understanding of the gap that remains to be addressed by issuers with regard to the transition from the NFRD to the CSRD, in terms of sustainability disclosures, the CSSF presents a snapshot of certain climate-related information as well as some more general related disclosures that issuers already publish. In addition, the CSSF takes the opportunity to issue some recommendations to the issuers concerned in light of certain of the new requirements that will come into force as from 2024 for publication in 2025.
Given the prominence of the subject, this analysis focuses primarily on information relating to climate change.