Sustainability: The FSMA has published a Communication to help listed companies get ready for new reporting obligations

The FSMA published Communication FSMA_2023_26, offering an in-depth overview of the expanded information obligations imposed on listed companies in the realm of sustainability, as derived from the CSRD. The primary focus is on the transposition of the European provisions on sustainable finance into Belgian law, specifically highlighting the gradual implementation of new disclosure requirements for listed companies, set to commence from the 2024 financial year.
To recap, the CSRD, a pivotal component of the broader framework for sustainable finance, mandates the publication of sustainability-related information by a wide array of companies, including all listed entities on a regulated market, excluding micro-enterprises. The directive aims to bolster transparency regarding the environmental and societal impact of companies‘ activities, allowing stakeholders to evaluate investment risks associated with climate change and other sustainability concerns. To meet these reporting requirements, companies are obligated to adhere to the ESRS, and compliance will be phased in gradually. Initial reporting obligations apply to listed companies currently subject to the NFRD, with other companies following a specific timeline.
In response to the current dynamic and technical regulatory landscape, the FSMA published Communication FSMA_2023_26, which adopts a didactic and practical approach. It includes straightforward diagrams, examples (including requirements for greenhouse gas emissions information), and a concluding synthesis. Each section concludes with a box listing preparatory actions that companies can undertake. The FSMA will oversee the sustainability information of listed companies through its periodic controls. The present communication articulates the CSRD’s implementation schedule, the key aspects of new information obligations, and the ESRS reporting standards. It also elucidates the interplay between these new information obligations and other regulations such as TR and SFDR. Therefore, the document is particularly beneficial for listed companies not yet subject to NFRD reporting, serving as a valuable resource to aid in their readiness for the impending CSRD reporting requirements.
Specifically, the document provides details on the timelines for various categories of companies to comply with the new reporting obligations. It distinguishes between large European and non-European companies, SMEs, and non-EU groups, outlining detailed schedules for the initial reporting on sustainability matters. The directive underscores the significance of companies disclosing emissions, presenting transition plans for climate change mitigation, and aligning emission reduction targets with the goal of limiting global warming to 1.5°C, as outlined in the Paris Agreement. The document emphasizes the importance of reporting emissions separately for different scopes, including emissions from regulated trading systems. It underscores the necessity for disclosing emission intensity in relation to net revenue for companies in high-impact climate sectors. Furthermore, it addresses the qualitative control of sustainability reporting, including options for external assurance by an independent third party or a different audit firm, as permitted by the directive.