Feature of the Month
Corporate Sustainability Reporting
The Corporate Sustainability Reporting Directive (CSRD) was recently adopted by the European Parliament. It requires companies to regularly disclose information about their social and environmental impact and at the same time lays the foundation for global sustainability reporting standards.
What does this mean for companies?
ESG becomes an integral part of the annual reporting process and sustainability information must now be audited → Consequently, much more data needs to be collected, including data on scope 3.6 emissions.
Who has to comply and by when?
In total, around 50,000 organisations must comply with the CSRD, compared to about 11,700 companies covered by the current rules. The European Commission has planned a phased implementation: - Financial Year 2024: For all organisations already within the scope of the Non- Financial Reporting Directive (NFRD) (currently around 11,700 organisations).
- Financial Year 2025: All "large" organisations, i.e. companies with a net turnover of at least EUR 40 million, assets of at least EUR 20 million and more than 250 employees.
- Later: All listed companies, including listed small and medium-sized enterprises (SMEs), but excluding micro-enterprises
Key Points
1. Transport & Sustainability - Developments on the Legislations Relevant to Achieving the EU's Climate Targets Emissions Trading System for Aviation and CORSIA
Filip Cornelis, the Commission's director in charge of aviation, has renewed calls for the EU Emissions Trading Scheme (ETS) to apply only to intra-European flights, despite MEPs - and short-haul airlines - pushing for the scheme to be extended to all flights departing from EU airports.
In late October, he told MEPs on the TRAN Committee about the October ICAO meeting in Montreal, where representatives from more than 150 countries discussed, among other things, the UN's Corsia compensation scheme. He suggested that Europe would undermine the international programme if it applied its own system to all flights leaving the EU. View his intervention here.
Slots Regulation
EU countries have agreed to a 75 percent “use it or lose it” threshold for airport slots this winter, meaning that airlines can retain their exclusive right to fly a particular route if they fly it on schedule 75 percent of the time. The new rules will last until 25 March 2023. In case of urgent need stemming from an epidemiological crisis or the war, the Commission will be empowered to modify that rule through delegated acts. The 80% will apply for the summer season unless the Commission decides otherwise. View more here.
CO2 emission standards for cars
EU legislators reached an agreement to impose a 2035 deadline for new vehicles and vans to be emissions-free. The co-legislators agreed to a: - 55% CO2 emission reduction target for new cars and 50% for new vans by 2030 compared to 2021 levels
- 100% CO2 emission reduction target for both new cars and vans by 2035. View more here.
Effort Sharing Regulation
On 8 November, Parliament and Council negotiators reached a provisional agreement on a revision of the Effort Sharing Regulation. Negotiators agreed to increase the mandatory GHG reduction 2030-target at EU level from 30% to 40% compared to 1990-levels. For the first time, all EU countries must now reduce GHG emissions with targets ranging between 10-50%. View more information here.
Energy Performance of Buildings Directive
During the Energy Council on 25 October, EU Member States reached an agreement (general approach) on a proposal to revise the Energy Performance of Buildings Directive. They kept the overall goal of transforming the EU buildings stock into zero-emission buildings by 2050. View more details on their exact position here.
The European Parliament is expected to decide on its position on the file by the end of January before interinstitutional negotiations can begin on this file. 2. Other updates Alliance for Zero-Emission Aviation
On 14 November, the Alliance for Zero Emission Aviation (AZEA) held its General Assembly and first Forum since its inception. The Alliance has more than 80 members representing a wide range of aviation industry stakeholders. During this forum, the Commission presented proposals to its members for a series of working groups that will address issues such as airport infrastructure and energy needs of hydrogen and electric aircraft, etc. More information about the Alliance and how to become a member can be found here.
Data indicates need to target longer flights
According to a new report on departures in 31 European countries, flights of less than 500 kilometres account for 27.9% of departures, but only 5.9% of the fuel consumed. Flights over 4,000 kilometres, on the other hand, account for only 6.2% of departures but consume 47% of the fuel. The report concludes that measures for longer flights are urgently needed. View more here.
Tags: GBTA Europe conference, GBTA | 
