Houthoff launches ESG Compass

15 December 2022

We are proud to launch the ESG Compass: a tool that gives you insight into which sustainability legislation is relevant for your organisation within a matter of minutes. The tool is freely accessible to everyone at esgcompass.houthoff.com.

What does the ESG Compass do?

Based on a short questionnaire about matters such as the structure, turnover and size of your organisation and whether it is EU-based, you will receive a report on the applicable directives and regulations. This will help you learn more about the relevant legislation, what it means for you as an organisation or financial market participant, and how you can ensure you are compliant.

Go to the ESG Compass.

The five European sustainability regulations at a glance

Non-Financial Reporting Directive (NFRD)

The NFRD has been in force since 2018 and applies to large public-interest companies with more than 500 employees, including listed companies, banks and insurance companies. These companies are required to report on how sustainability matters affect their business and on the impact of their business activities on people and the environment.

Corporate Sustainability Reporting Directive (CSRD)

On 10 November 2022, the CSRD was formally adopted by the European Parliament by a large majority. It is an extension of the NFRD, applying to a significantly larger group of companies and imposing more extensive reporting requirements.

Corporate Sustainability Due Diligence Directive (CSDDD)

On 23 February 2022, the European Commission published the proposal for the CSDDD. This directive requires certain large EU and non-EU companies to apply due diligence practices to detect, prevent, mitigate and ultimately eliminate adverse impacts of their business activities on human rights and the environment. The proposed CSDDD applies to a companies' own activities, the activities of their subsidiaries, and those of their value chain.

Sustainable Finance Disclosure Regulation (SFDR)

The SFDR entered into force on 10 March 2021. This regulation lays down harmonised rules for financial market participants and financial advisers on transparency with regard to the integration of sustainability risks, the consideration of adverse sustainability impacts in their processes and the provision of sustainability‐related information with respect to financial products. In doing so, the SFDR distinguishes between requirements for financial products that promote environmental or social characteristics and requirements for financial products that aim to have a positive impact on the environment and society.

EU Taxonomy

The EU Taxonomy Regulation encourages sustainable finance and investment, makes sustainability an integral part of market participants' risk management and increases market participants' transparency and long-term thinking on sustainability issues. The EU Taxonomy Regulation provides a classification system that gives financial market participants tools to determine whether or not a given economic activity should be considered sustainable.