On 31st January 2022, the Climate Disclosure Standards Board (CDSB) was consolidated into the IFRS Foundation to support the work of the newly established International Sustainability Standards Board (ISSB). While this site and its resources remain relevant for preparers looking to improve sustainability disclosure until such time as the ISSB issues its IFRS Sustainability Disclosure Standards on such topics, no further work or guidance will be produced or published by CDSB. For further information please visit the IFRS website.

Falling short?

Why environmental and climate-related disclosures under the EU Non-Financial Reporting Directive must improve

CDSB has reviewed the 2019 environmental and climate-related disclosures of Europe’s 50 largest listed companies, with a combined market capitalisation of US$4.3 trillion, under the EU Non-Financial Reporting Directive (NFRD also referred to as ‘the Directive’).

The purpose of this report is to inform policymakers of the changes needed to improve environmental disclosures under the Directive, to ensure it meets its purpose of increasing the relevance, consistency and comparability of company reporting. It also aims to support corporate report preparers in enhancing their disclosures under the Directive by identifying good practice case studies and tips, drawn from the findings of CDSB’s review. 

Supported by the LIFE Programme of the European Union, the review consisted of a question set developed by CDSB to assess the strengths and weaknesses of companies’ disclosures. This was based on consideration of the core ‘content categories’ of the NFRD (i.e. business model, policies and due diligence, outcomes, principal risks and key performance indicators), and reviewing progress in implementing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Mainstream reports (i.e. annual report and accounts) were reviewed, alongside information disclosed elsewhere where it was clearly referenced from the mainstream disclosure.

Download the report:

Print version | Online version


  • Introduction
  • Findings part 1: Environmental disclosure under the NFRD content categories
  • Findings part 2: TCFD and additional considerations
  • Conclusions and recommendations
  • Appendices
  • References 

With the contribution of the LIFE Programme of the European Union

The content of this page is the sole responsibility of the author and can under no circumstances be regarded as reflecting the position of the European Union