The Council of the European Union on November 28, 2022, definitively approved the Corporate Sustainability Reporting Directive (hereinafter the “CSRD” or the “Directive”), already adopted at first reading on 10 November 2022 by the European Parliament1.
The CSRD is the cornerstone of the European Green Deal and the Sustainable Finance Agenda and part of a wider EU policy to commit companies to respect human rights and reduce their impact on the planet.
The Directive introduces more detailed reporting requirements on companies’ impact on the environment, human rights and social standards, extending the scope of application of the Non-Financial Reporting Directive (Directive 2014/95/EU, hereinafter the “NFRD”).
The CSRD, which will enter into force before the end of 2022, is the pivot of the European Union’s action on sustainable finance, aimed at pursuing the climate objectives of the Paris Agreements and the 2030 Agenda.
Through the CSRD, investors and consumers on the market will be allowed to benefit from better access to comparable, relevant and reliable information relating to sustainability with a consequent reduction of investment risks by companies that intend to direct financial flows to companies characterized by a greater degree of sustainability.
CRSD introduces relevant changes to the annual reporting process, and it will force companies to rethink their reporting. The sustainability declaration will be equated to the financial one and must be treated with the same degree of rigor. Companies will be subject to independent audits and certifications to ensure that the data provided is reliable.
The CNMV (National Securities Market Commission) has highlighted the need to make European savings accounts more attractive both fiscally and operationally. They encourage offering tax advantages to incentivise long-term investment and direct savers’ money towards key sectors like digitalization and sustainability.
Spain, along with other European countries, is promoting a Competitiveness Laboratory to establish a label for investment products that provide tax benefits. However, since taxation is a national competence, the European Commission can only make suggestions or recommendations.
The CNMV also emphasizes the need to improve financial education so that citizens can access more profitable investment options beyond bank deposits. Additionally, measures are being prepared to strengthen capital markets and reduce burdens for fund managers.
In this regard, Inverco and the CNMV have joined forces to implement key European and OECD proposals for funds and pensions, welcoming additional tax incentives. This was discussed at the 2025 General Assembly of Inverco held in Madrid on June 04-06-2025, specially how to boost savings, investment in funds and pensions.
Nationwide, a key factor would be to maintain the current regulatory framework for funds while welcoming extra tax advantages to attract new investment flow. On the European side, the upcoming measures should eliminate national barriers to the cross-border commercialization of founds.
Moreover, the OECD made a report in which recommends to take action and promote measures such as boosting company and individual pension plans while considering contentious issues like removing the ten-year liquidity cutoff in pension vehicles.
SOURCES:
Ángel Alonso, Madrid, 04-06-2025 “la CNMV insiste en que las cuentas de ahorro europeas sean ‘fiscalmente atractivas y sencillas operativamente’” Funds Society, 04-06-2025 “Inverco y la CNMV suman fuerzas para materializar las propuestas marcadas por Europa y la OCDE en fondos y pensiones, y dan la bienvenida a incentivos fiscales añadidos.”