The planned rules of the draft Corporate Sustainability Reporting Directive are intended to extend considerably the “non-financial reporting obligation” applicable until now to certain European companies with respect to scope, extent of reporting and inclusion in the framework of corporate governance.

Overall, AK welcomes the Commission’s ambitious draft directive for a new, European sustainability reporting. It is crucial, however, that the rules in question are not watered down in the ongoing negotiation process. Instead, this first considerable achievement needs to be further refined, for example with respect to comprehensive social and governance reporting, with the explicit inclusion of consultation with trade unions and other co-determination actors, such as works councils. Companies need to be given precise rules about how to report on the working conditions of employees, as well as on subcontracting and suppliers.