ESG Global Vision

Non-financial reporting

• Entry into force: 5 December 2014.
• Application: 2018 (covering financial year 2017). 

Financial and non-financial entities that qualify as large public interest entities with more than 500 employees (scope being re-considered).

The NFRD imposes requirements on large public interest entities to include a non-financial statement in their annual report. The non-financial statement should cover, as a minimum, environmental, social and employee matters, respect for human rights, anti-corruption and bribery matters.

The EC is conducting a review of the NFRD with a view to making the disclosure guidelines mandatory, extending the scope of NFRD to a broader range of companies and organisations, requiring some form of assurance for climate disclosures and developing an EU-wide ESG reporting standard in the absence of a globally recognised one. A draft legislative proposal has been adopted by the Commission on 21 April 2021 (Proposal for a Corporate  Sustainability Reporting Directive (CSRD)). 

Corporate governance policy

Entry into force: 9 June 2017

Companies that have their registered office in the EU and their shares listed on a regulated market in the EU.

SRD II enhances the SRD regime by introducing rules that aim to counter an excessive focus on short-term profits and risk-taking in favour of a longer term, more sustainable model of corporate governance that considers the wider interests of shareholders and stakeholders.

Financial reporting

Entry into force: 29 December 2019. Application:

• Level 1 (high level and principles based requirements) apply from 10 March 2021.
• Level 2 (regulatory technical standards) expected to apply from Q1 2022.

Financial advisers and financial market participants

The Disclosure Regulation sets out a number of entity and product level disclosures required to be made by financial advisers and financial market participants from 10 March 2021.

Financial reporting

Published by the EC on 21 April 2021.

Application: rules expected to start applying from around October 2022.

Firms within the scope of MiFID, AIFMD and UCITS.

The proposed amendments set out obligations on investment funds, mutual funds, alternative investment funds (AIFs), investment firms, insurance firms and brokers, and reinsurance companies to provide clients with clear advice on ESG risks and opportunities attached to their investments.

Find out more:

MiFID Delegated Regulation

Delegated Directive

AIFMD Delegated Regulation

UCITS Implementing Directive

Corporate governance policy

Entry into force: 2 August 2022

Management companies and credit institutions

The Delegated Regulation concerns integration of sustainability factors, risks and preferences into certain organisational requirements and operating conditions for investment firms.

Corporate governance policy

Entry into force: 2 August 2022

Any alternative investment fund.

The Delegated Regulation concerns sustainability risks and sustainability factors to be taken into account by alternative investment fund managers.

Corporate governance policy

Entry into force: 2 August 2022

Any insurance and reinsurance undertaking.

The Delegated Regulation concerns the integration of sustainability risks into the governance of insurance and reinsurance undertakings.

The Delegated Regulation provides for the integration of sustainability risks in the prudent person principle. In particular, when dealing with risks arising from investments, insurance and reinsurance undertakings shall take into account sustainability risks. More precisely they shall take into account the potential long-term impact of their investment strategy and decisions on sustainability factors and, where relevant, that strategy and those decisions of an insurance undertaking shall reflect the sustainability preferences of its customers taken into account in the product approval process referred to in Article 4 of Commission Delegated Regulation (EU) 2017/2358 (product oversight and governance requirements for insurance undertakings and insurance distributors).

Corporate governance policy

Entry into force: 2 August 2022

Any insurance undertaking and distributor of insurance products.

The Delegated Regulation concerns the integration of sustainability factors, sustainability risks, and sustainability preferences into product control and product governance requirements for insurance companies and distributors of insurance products and into conduct of business rules and investment advice for insurance investment products.

Corporate governance and financial policy

Entry into force: Member States shall implement the Directive by 22 November 2022.

Any Member State

The Delegated Directive concerns the integration of sustainability factors into product governance obligations (safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits).

Corporate governance and financial policy

Entry into force: Member States shall implement the Directive by 2 August 2022

Any Member State

The Delegated Directive concerns sustainability risks and sustainability factors to be taken into account for undertakings for collective investment in transferable securities (UCITS).

In particular, management companies should, when identifying the types of conflicts of interest the existence of which may damage the interests of a UCITS, include conflicts of interest that may arise as a result of the integration of sustainability risks in their processes, systems and internal controls. Those conflicts may include conflicts arising from remuneration or personal transactions of relevant staff, conflicts of interest that could give rise to greenwashing, mis-selling or misrepresentation of investment strategies and conflicts of interests between different UCITS managed by the same management company.

Social policy

Entry into force: 8 December 2020

Consolidated version adopted on 22 March 2021.

EU persons, companies incorporated or constituted under the law of an EU Member State, non-EU companies in respect of any business done in whole or in part within the EU.

In December 2020, the Council adopted the EU’s first global human rights sanctions regime. This new regime allows the EU to impose travel bans and financial sanctions on individuals, entities and bodies (including state and non-state actors) responsible for, involved in or associated with serious human rights violations and abuses worldwide, irrespective of where they occurred.

Social policy

Directive entered into force on 6 June 2023 and Member States must implement within three years, by 7 June 2026

Employers in the public and private sectors

This Directive aims to improve equal pay between men and women through greater pay transparency and better access to justice in the event of unequal pay.

The Directive provides for a reporting obligation for employers with 100 or more employees on the gender pay gap between female and male workers in their organisation. Companies with more than 250 employees will be required to report annually to the relevant national authority (to be determined). For smaller organisations (initially those with over 150 employees), the reporting obligation should take place every three years.

The Directive also provides for better access to information for job applicants, workers and their representatives, a shift of the burden of proof (of equal pay) to the employer in pay discrimination cases, and an obligation for Member States to introduce effective and appropriate sanctions for non-compliance, including fines.

Non-financial reporting

A draft legislative proposal has been adopted by the Commission on 21 April 2021.

The CSRD has been adopted by EU Parliament on 10 November 2022 and Council should adopt on 28 November 2022. Publication in EUOJ should follow and CSRD should enter into force 20 days after the publication.

The rules will start applying between 2024 and 2028:

• From 1 January 2024 for large public-interest companies (with over 500 employees) already subject to the non-financial reporting directive, with reports due in 2025;
• From 1 January 2025 for large companies that are not presently subject to the non-financial reporting directive (with more than 250 employees and/or €40 million in turnover and/or €20 million in total assets), with reports due in 2026;
• From 1 January 2026 for listed SMEs and other undertakings (small and non-complex credit institutions and captive insurance undertakings), with reports due in 2027. SMEs can opt-out until 2028.

Listed companies, with the exception of listed micro-enterprises.

The CSRD Directive addresses shortcomings in existing legislation on the disclosure of non-financial information (NFRD), perceived as largely insufficient and unreliable. The CSRD introduces more detailed reporting requirements on companies’ impact on the environment, human rights and social standards, based on common criteria in line with EU’s climate goals. The Commission will adopt the first set of standards by June 2023.

To ensure companies are providing reliable information, they will be subject to independent auditing and certification. Financial and sustainability reporting will be on an equal footing and investors will have comparable and reliable data. Digital access to sustainability information will also have to be guaranteed.

Social policy

EC’s legislative proposal adopted on 23 February 2022.

The proposal will be presented to the European Parliament and the Council for approval. Once adopted, Member States will have two years to transpose the Directive into national law.

EU companies:

• Group 1: all EU limited liability companies of substantial size and economic power (with 500+ employees and EUR 150 million+ in net turnover worldwide).
• Group 2: Other limited liability companies operating in defined high impact sectors, which do not meet both Group 1 thresholds, but have more than 250 employees and a net turnover of EUR 40 million worldwide and more. For these companies, rules will start to apply 2 years later than for group 1.

Non-EU companies active in the EU with turnover threshold aligned with Group 1 and 2, generated in the EU.

The Draft Directive sets out duties for companies in scope to undertake due diligence for actual or potential adverse human rights and environmental impacts in their own operations, those of their subsidiaries and in their value chains (direct and indirect established business relationships).

In addition, group 1 companies need to have a plan to ensure that their business strategy is compatible with limiting global warming to 1.5 °C in line with the Paris Agreement.

The proposal also includes provisions in relation to voluntary model contractual clauses, public support by Member States, and directors' duties.

National administrative authorities appointed by Member States will be responsible for supervising these new rules and may impose fines in case of non-compliance. In addition, victims will have the opportunity to take legal action for damages that could have been avoided with appropriate due diligence measures.

Social Policy

In force (Member States are required to implement the Directive)

Any member State

Under the new rules, workers are, inter alia, entitled to greater predictability regarding assignments and working hours. They will also be entitled to receive timely and more complete information about essential aspects of their work, such as their place of work and pay. The new rules will particularly benefit some 2-3 million workers with precarious forms of employment.

Environmental policy

Entry into force: 5 May 2022

Companies based in Spain

The aim of this new Royal Decree 309/2022 is the following: to avoid the relocation of production activity in those sectors most exposed to a significant risk of carbon leakage to third countries that are not subject to European Union (EU) regulations, which would entail a loss of production activity in Spain and the EU, as well as the danger of producing an overall increase in greenhouse gas emissions due to fewer restrictions in non-EU countries.

Financial reporting

Entry into force: 10 December 2019

Benchmark administrators

The Benchmark Regulations require benchmark administrators to disclose ESG factors, and include disclosure in their benchmark statement on how their methodology aligns with the target of carbon emissions reduction or attains the objectives of the Paris Agreement.

Taxonomy, financial reporting and non-financial reporting

Applies from 1 January 2022.

The following delegated acts were approved by the Commission for scrutiny by the co-legislators:

Delegated Act on sustainable activities for climate change adaptation and mitigation objectives

Delegated act supplementing Article 8

• Financial market participants who offer financial products and market these as environmentally sustainable
• Organisations covered by the NFRD and SFDR

The Taxonomy Regulation sets out an EU-wide framework and classification system according to which investors and businesses can assess whether certain economic activities are environmentally sustainable.

The Taxonomy Regulation introduces amendments to disclosure requirements under SFDR and NFRD.

Financial reporting

In force

EU Institutions and national governments.

The European Climate Law writes into law the goal set out in the European Green Deal – for Europe’s economy and society to become climate-neutral by 2050.

Taxonomy, financial reporting and non-financial reporting

Entry into force: 29 December 2021.

Application from 1 January 2022.

1. Financial market participants who offer financial products and market these as environmentally sustainable
2. Organisations covered by the NFRD and SFDR

The Net Zero Investment Framework provides recommended methodologies and actions which asset owners and asset managers should utilise to assess and undertake alignment of their portfolios towards net zero, in order to maximise their contribution to the decarbonisation of the real economy. The Framework puts forward metrics to assess investments and measure alignment, and requires investors to set concrete targets at portfolio and asset level.

The key recommendations revolve around governance and strategy, portfolio reference targets, strategic asset allocation, asset class alignment, policy advocacy, and stakeholder and market engagement.

Investors are encouraged to publish information annually on how they consider their targets to be aligned to a pathway to achieve global net zero emissions by 2050, and the strategy and actions they have implemented across all asset classes, and performance against the objectives and targets over time.

Financial reporting

Entry into force: 23 December 2020

Benchmark administrators

The three Delegated Acts required by the Low Carbon Benchmarks Regulation and adopted by the EC, set out (i) the environmental, social, and governance (ESG) disclosure requirements for benchmarks provided in accordance with the EU Benchmarks Regulation (Regulation (EU) 2016/1011), and (ii) sustainability criteria in order for a benchmark to qualify as an EU Climate Transition Benchmark or EU Paris-aligned Benchmark. Those are:

Commission Delegated Regulation (EU) 2020/1816

Commission Delegated Regulation (EU) 2020/1817

Commission Delegated Regulation (EU) 2020/1818

Environmental policy

Entry into force : Member States shall bring into force the provisions of the Directive by 10 March 2020

Any EU Member State

This Directive presents some amendments to Directives 2010/31 and 2012/27 to better address and ensure that sustainability requirements are met in building construction activities, new building characteristics and building energy performance aspects.

Social policy, due diligence obligation

Entry into force: 8 June 2017.

New consolidated version adopted on 19 November 2020.

Application: 1 January 2021

EU-based importers of tin, tantalum, tungsten and gold

The regulation requires EU importers of the four minerals – tin, tantalum, tungsten and gold – to ensure they use only responsible and conflict-free sources.

They need to comply with, and report on, supply chain due diligence obligations if the minerals originate (even potentially) from conflict-affected and high-risk areas.

Companies from outside the EU are also impacted as EU-companies will need to make sure they source from responsible smelters and refiners.

Social policy

Entry into force: 23 March 2022

Companies based in Spain

The aim of this new Act 2/2002 is the following: to amend some of the provisions of core Spanish legislation, including but not limited to the Judiciary Act or the Civil Procedure Act, in order to improve the protection of orphans who are victims of gender-based violence.

Social policy; environmental policy; Corporate governance; Government-led standard

In force since 21 May 2021

Companies based in Spain

The aim of this law is to facilitate the decarbonisation of the Spanish economy, and its transition to a circular model, so as to guarantee the rational and supportive use of resources; and promote adaptation to the impacts of climate change and the implementation of a sustainable development model that generates employment opportunities and contributes to the reduction of inequalities.

Social policy; environmental policy; Corporate governance; Government-led standard

In force since 21 May 2021

Companies based in Spain

The aim of this law is minimising the negative impacts of waste generation and waste management on human health and the environment.

Social policy; Corporate governance policy; Government-led standard

Not yet in force

Workers and companies based in Spain

The aim of this draft law (not yet in force) is to implement in Spain the Directive (EU) 2019/1152, which lays down minimum requirements aimed at achieving gender equality as regards labour market opportunities and treatment at work by making it easier for workers who are parents or carers to balance family and working life. It establishes individual rights to be introduced into Spanish national law which relate to: (i) paternity leave, parental leave and leave for carers; and (ii) flexible working arrangements for workers who are parents or carers.

Social policy; Corporate governance policy; Government-led standard

Not yet in force

Workers and companies based in Spain

The aim of this draft law (not yet in force) is to implement in Spain the Directive (EU) 2019/1152 on transparent and predictable working conditions in the European Union, which aims to improve working conditions by promoting employment that offers greater transparency and predictability, while ensuring the adaptability of the labour market. It establishes minimum rights applicable to all workers with an employment contract or employment relationship, taking into account the case law of the EU Court of Justice.

Social policy; Corporate governance policy; Government-led standard

Not yet in force

Companies based and operating in Spain

The aim of this draft law (not yet in force) is to  regulate, in a binding and general manner, the obligation of Spanish companies or groups and those companies operating in the Spanish market, to respect human rights and environmental rights in all the activities carried out throughout their global value chains.

Environmental policy: Government-led standard

In force since 30 April 2007, amended by 2015 Environmental Act

Economic or professional activities that may cause environmental damage or whose actions imminently threaten to cause such damage

The purpose of this law is to ensure the fulfilment of national climate protection targets in compliance with European environmental standards, with the aim of protecting and preventing the effects of global climate change.

For this purpose, this law regulates the liability of those whose activities may cause environmental damage, seeking to prevent, avoid and repair said environmental damage.

In addition to the provisions of European and international legislation, it is grounded on article 45 of the Spanish Constitution, which establishes the right of everyone to enjoy the environment as essential for individual’s development, as well as everyone’s duty to preserve it.

In essence, the main tenet of this law is to legally materialise the idea of “the polluter pays”.

Social policy; Corporate governance policy

In force

Workers and companies based in Spain

This law establishes the general regulations concerning the rights and duties of workers, as well as the rights and duties of companies towards workers in Spain.

In relation to ESGs, this law includes several provisions with a strong social dimension, such as: non-discrimination for any reason; the right to rest; the right to suspension of the employment contract for reasons of pregnancy, with the right to return to the same position afterwards; collective representation rights; worker protection in terms of health and safety at work; equal payment regardless worker’s sex; workers’ right to privacy in relation to the digital environment and the right to disconnection (particularly on the rise since the arrival of COVID-19).

Social policy; environmental policy; Corporate governance; Government-led standard

In force since 5 March 2011

Spanish public and private entities

The main purpose of this law is to ensure economic, social and environmental development in the framework of a productive and competitive economy, while preserving the environment and ensuring that a rational use of natural resources is made.

Some important points in connection with ESGs:

• Public administrations shall encourage companies, organisations and other entities to develop social responsibility policies. To this end, the government will provide them with a series of indicators for self-assessment in this area.

Companies can make public their corporate social responsibility policies and performance. Besides, any company may voluntarily apply to be recognised by the Spanish government as a socially responsible company.

Social policy; Corporate governance policy; Government-led standard

In force since 23 March 2007

Public and private entities, with the aim of avoiding any type of discrimination based on gender.

With the aim of achieving effective equality between women and men, this law includes measures such as:

• Public authorities shall endeavour to take into account the principle of balanced presence of women and men in positions of responsibility.
• To improve employability and performance of women, enhancing their level of training and their adaptability to the requirements of the labour market.
• In order to contribute to a more balanced sharing of family responsibilities, fathers are entitled to paternity leave and paternity allowance.
• Companies must adopt measures aimed at avoiding any type of discrimination between women and men in the workplace.
• Companies with 50 or more employees must draw up and implement a plan setting out specific objectives and strategies to achieve effective equality between women and men.

Besides, the Spanish Ministry of Labour may award recognition those companies that stand out for their implementation of equal treatment and equal opportunities for their employees, as regulated on the Act on Equality in the Workplace.

Social policy; Corporate governance

In force since 23 July 2016

Local legislation, each Spanish Autonomous Region may enact this type of legislation (this one in particular is from the Autonomous Region of Madrid)

In order to avoid discrimination based on sexual orientation, this law foresees some measures such as encouraging the progressive implementation of equality to measure the inclusion of LGTBI people in both public and private sector, so that companies that stand out for the application of equality and non-discrimination policies can be recognised.

Non-financial reporting; Corporate governance policy; social policy

In force since 29 December 2018

Companies based in Spain

This law amends the main Spanish commercial laws, including the Spanish Commercial Code, the Spanish Companies Act and the Spanish Audit Act, on non-financial reporting and diversity.

It impose information disclosure obligations in connection with human rights, as well as the implementation of human rights due diligence procedures and the elimination of the possibility for companies to omit certain information on the grounds that the management body considers that disclosure may harm its commercial position. Besides, if a company has no policy on any of these matters, it should provide a clear and reasoned explanation on why not.

Furthermore, in accordance with the Spanish Companies Act, directors have a duty to avoid situations of conflict of interest. Therefore, directors should refrain from: engaging in transactions with the company; using the company’s name or invoking their position as director to unduly influence the conduct of private transactions; using company assets for private purposes, including confidential company information; taking advantage of business opportunities of the company. In the event that a director is in a situation of conflict, they shall disclose this to the rest of directors, as well as to the board of directors and the shareholders

Prudential measures

Entry into force: 30 December 2019

Institutions subject to supervision by the EBA, EIOPA and ESMA

The Omnibus Regulation establishes ESG-related factors as part of the EBA, EIOPA and ESMA’s "scope of action" and assigns each with the task of monitoring and assessing ESG-related developments in their areas of competence.

The Omnibus Regulation also modifies Article 23 (1) of each regulation, requiring each authority to develop criteria for the identification and measurement of systemic risk, including environmental risks, and Article 29 (1) of each regulation, requiring each authority to put in place a monitoring system to assess material ESG-related risks, taking into account the Paris Agreement.

Prudential measures

In progress

Report on Environmental, Social and Governance (ESG) risks management and supervision published on 23 June 2021

Credit institutions and investment firms

Article 98(8) of Directive 2013/36/EU (“CRD IV”) and Article 35 of Directive (EU) 2019/2034 (“IFD”) requires the EBA to develop a report providing uniform definitions of ESG risks, and appropriate qualitative and quantitative criteria for the assessment of the impact of ESG risks on the financial stability of institutions in the short, medium and long term. They also mandate the EBA to assess whether to include ESG risks in its annual prudential supervisory review and evaluation process undertaken by Member State prudential regulators (“SREP”).

Prudential measures

In progress

Report on Environmental, Social and Governance (ESG) risks management and supervision published on 24 October 2022

Credit institutions and investment firms

In June 2021, the EBA published a Report on the management and supervision of ESG risks for credit institutions and investment firms in accordance with Article 98(8) of Directive 2013/36/EU (Capital Requirements Directive - CRD) and Article 35 Directive (EU) 2019/2034 (Investment Firms Directive - IFD).

Following the publication of the EBA Guidelines on SREP for investment firms, the Report published on 24 Oct 2022 fulfils the mandate under point (d) of Article 35 of the IFD and complements the Report on the management and supervision of ESG risks for credit institutions and investment firms, published in June 2021.

Point (d) of Article 35 of IFD mandates the EBA to develop a report providing the criteria, parameters and metrics by means of which supervisors and investment firms can assess the impact of short, medium and long-term ESG risks for the purposes of the supervisory review and evaluation process. The Report has been transmitted to the EU Parliament, the Council and the European Commission.

Non-financial reporting

A draft legislative proposal has been adopted by the Commission on 21 April 2021.

The CSRD has been adopted by EU Parliament on 10 November 2022 and Council should adopt on 28 November 2022. Publication in EUOJ should follow and CSRD should enter into force 20 days after the publication.

The rules will start applying between 2024 and 2028:

• From 1 January 2024 for large public-interest companies (with over 500 employees) already subject to the non-financial reporting directive, with reports due in 2025;
• From 1 January 2025 for large companies that are not presently subject to the non-financial reporting directive (with more than 250 employees and/or €40 million in turnover and/or €20 million in total assets), with reports due in 2026;
• From 1 January 2026 for listed SMEs and other undertakings (small and non-complex credit institutions and captive insurance undertakings), with reports due in 2027. SMEs can opt-out until 2028.

Listed companies, with the exception of listed micro-enterprises.

The CSRD Directive addresses shortcomings in existing legislation on the disclosure of non-financial information (NFRD), perceived as largely insufficient and unreliable. The CSRD introduces more detailed reporting requirements on companies’ impact on the environment, human rights and social standards, based on common criteria in line with EU’s climate goals. The Commission will adopt the first set of standards by June 2023.

To ensure companies are providing reliable information, they will be subject to independent auditing and certification. Financial and sustainability reporting will be on an equal footing and investors will have comparable and reliable data. Digital access to sustainability information will also have to be guaranteed.

Corporate governance policy and financial and non-financial disclosures

In force since 2013

New consolidated version adopted on 30 September 2021.

Large institutions with securities traded on a regulated market of any EU Member State

Regulation (EU) 2019/876 amending Capital Requirements Regulation includes under article 449a the requirement to disclose prudential information on environmental, social and governance risks, including transition and physical risk, addressed to large institutions with securities traded on a regulated market of any Member State. These disclosure requirements are applicable from June 2022 on an annual basis during the first year and biannually thereinafter. 

Non-financial reporting

Voluntary standards

Financial institutions such as pension funds and asset managers

The Net Zero Investment Framework provides recommended methodologies and actions which asset owners and asset managers should utilise to assess and undertake alignment of their portfolios towards net zero, in order to maximise their contribution to the decarbonisation of the real economy. The Framework puts forward metrics to assess investments and measure alignment, and requires investors to set concrete targets at portfolio and asset level.

The key recommendations revolve around governance and strategy, portfolio reference targets, strategic asset allocation, asset class alignment, policy advocacy, and stakeholder and market engagement.

Investors are encouraged to publish information annually on how they consider their targets to be aligned to a pathway to achieve global net zero emissions by 2050, and the strategy and actions they have implemented across all asset classes, and performance against the objectives and targets over time.

Financial and non-financial reporting

Voluntary standards

Asset managers

The code focuses on socially responsible investment (SRI) funds distributed publicly in Europe and has been designed to cover a range of assets classes, such as equity and fixed income.

The principle driving the Code is that asset manager signatories should be open and honest, and disclose accurate, adequate and timely information to enable stakeholders, in particular retail investors, to understand the policies and practices of a given SRI fund.

Signatories need to make several commitments such as respecting the order and exact wording of the questions of the code, updating responses at least on an annual basis, and making the responses to the code easily accessible from the fund’s and/or fund manager’s website.

Sustainability standards

Voluntary standards

All companies

The Commission adopted on March 2022 draft revised Guidelines on the assessment of Horizontal Agreements. Such guidelines will enter into force on 1 January 2023. Chapter 9 of the guidelines concerns “sustainability agreements”. According to chapter 9, agreements which meet certain standards of sustainability can outbalance negative effects under a competition standpoint and can thus be exempted from the application of competition rules.

Corporate Governance

In force

EU financial services firms

The EU has introduced amendments to various Delegated Acts (see link) which will integrate sustainability issues into a number of key financial services Directives.

Entities will be:

• Required to integrate sustainability factors into their assessment of client suitability for certain financial products and when undertaking product approval of instruments.
• Subject to new obligations to integrate sustainability risks into risk management and conflict procedures
• Subject to new fiduciary duties, making sure that they encompass sustainability risks such as the impact of climate change.
   

Support of SMEs and organisations projects

Entry into force: 26 March 2021.

Application: 1 January 2021

EU SMEs and organisations with difficulties when accessing finance because of their perceived high risk (in particular after COVID-19 crisis).

This Regulation establishes the InvestEU Fund, which shall provide for an EU guarantee to support financing and investment operations carried out by the implementing partners that contribute to objectives of the Union’s internal policies. The Regulation also establishes an advisory support mechanism to provide support for the development of investable projects and access to financing and to provide related capacity building assistance.

Social policy; Corporate governance policy

In force since 14 April 2021

Men and women workers, and companies based in Spain

Royal Decree provides for the incorporation of a series of instruments that, in application of the principles of transparency of remuneration, make effective the right to equal treatment and non-discrimination between women and men in matters of remuneration.

All companies must have a remuneration register for their entire workforce, including management personnel and senior executives. The second obligation is to have a remuneration audit to verify compliance or non-compliance with the principle of equality between men and women in terms of remuneration. Companies that must carry out an audit will have the obligation to carry out a diagnosis of the remuneration situation. They must also establish an action plan for the correction of pay inequalities, with the determination of objectives, specific actions, timetable and person responsible. The last obligation is to establish a job evaluation system. It is stated that one job has the same value as another when the nature of the functions, the conditions and the factors strictly related to its performance are in fact equivalent.

Social policy; Corporate governance policy; Government-led standard

In force since 14 July 2022

Workers, companies and other employer entities based in Spain.

The purpose of the Law is to guarantee and promote the right to equal treatment and non-discrimination, respecting the equal dignity of persons. This law extends protection to more situations of discrimination by adding, to the six grounds included in the Spanish Constitution (discrimination on the grounds of birth, race, sex, religion, opinion or any other personal or social condition or circumstance), the right of all persons to equal treatment and non-discrimination regardless of their nationality, whether they are minors or adults or whether or not they enjoy legal residence not to be discriminated against on the grounds of: age, disability, sexual orientation or identity, gender expression, disease or health condition, serological status and/or genetic predisposition to suffer pathologies and disorders, language, socioeconomic status. It is important to point out that the law has explicitly and specifically referred to illness in order to make it clear that differences in treatment based on this circumstance cannot be protected.

Social policy; Corporate governance policy

In force since 2 March 2023

Workers, companies and other employer entities based in Spain.

The Law establishes the organization of public employment policies and regulates the set of structures that make up the National Employment System. It aims to contribute to job creation and unemployment reduction, improve employability, reduce structural gender gaps and promote social and territorial cohesion. The Law transforms the State Public Employment Service into the Spanish Employment Agency and establishes a series of commitments to be assumed in order to be able to access the guaranteed services. In addition, exceptionally, specific working and employment conditions for women and young workers are allowed in order to guarantee real and effective equality in the access to and consolidation of employment. It also introduces amendments to the Workers’ Statute Act.

Social policy; Government-led standard

Approved the 16 March 2023

Families and their social protection and reconciliation rights.

The main novelties it contains are based on four pillars:

Firstly, the extension of social protection to families and support for upbringing, which extends the upbringing income to a greater number of families, and the range of protection for large families is extended. In the advance in guaranteeing the right to conciliation for all families, it creates three types of care leave. Likewise, full legal recognition is given to the different types of families, such as unions and unmarried couples and the protection of families with members with disabilities, adoptive and multiple families, among others. Ultimately, it guarantees the recognition and protection of the children and adolescents, through respect for family diversity as a principle of the educational system, and improves the Child Support Guarantee Fund.

Social policy; Corporate governance; Government-led

In force since dd 17 March 2023

Workers nearing retirement age

The main objective pursued throughout this regulatory process has been to deal with the retirement of the largest generation in Spain (baby boomers). The focus has been on the following aspects: shielding the revaluation of present and future pensions, revaluing minimum and non-contributory pensions and not penalizing workers who have had irregular careers.

The first measure is the gradual increase in the maximum contribution bases, increasing the mass of wages subject to contribution, together with a correlative increase in the maximum pensions. Secondly, it establishes the creation of a 6% solidarity quota for the highest salaries. On the other hand, the Intergenerational Equity Mechanism (MEI) is modified so that it will grow by one tenth of percentage point each year. It also establishes a new calculation formula so that the most beneficial contribution is applied to the worker. The regulation also provides for an increase in the gender gap supplement and seeks to reinforce and improve minimum pensions, including in the lowest minimum and non-contributory pensions.

Social policy

In force since 30 June 2023

Workers, especially with regard to the protection and the exercise of their rights.

The Royal Decree includes various labor-related measures. Among them, the transposition of the European Directive on the reconciliation of family and professional life, and the amendment of the Workers’ Statute. The main new features are related to the recognition of domestic partners for the purpose of reconciliation rights; the extension of the adaptation of the working day due to the need to care for a child, partner or family members; new permits such as caregivers’ leave or leave for urgent situations; new grounds for suspension of the contract due to parental leave; simultaneous exercise of certain reconciliation rights and extension of the nullity of dismissal.

Social Directive

In force since 6 June 2023

Workers, companies, public and private entities

The Directive reinforces the application of the principle of equal pay for men and women for equal work of equal value. Its most relevant aspects are, first of all, the description of the gender-neutral criteria used to determine pay and career advancement. It devotes a section to the right of information for female workers on their individual pay levels and on the average pay levels. It also provides that job applicants have the right to receive information from the potential employer on the starting pay level or starting pay range, and the objective and gender-neutral criteria for the position for which they are applying and the duty for employers to ensure that job vacancy announcements are gender-neutral, and that recruitment processes are carried out in a non-discriminatory manner. Furthermore, provides for compensation of victims of pay discrimination and the reversal of the burden of proof when the principle of equal pay has been violated.