Sustainability reporting is changing - EU reporting directive adopted
The Corporate Sustainability Reporting Directive (CSRD) has been adopted in its final form in the European Union, with the Council of the European Union adopting the proposed directive on 28 November 2022.
This means that the new directive will apply from 1.1.2024. However, the application has been staggered so that the reporting obligations come into force from 1 January 2024, first for large companies that already report non-financial information and are covered by the so-called Non-Financial Reporting Directive (NFRD).
Thereafter, the scope will be extended annually to cover other and smaller companies, until full coverage in 2028. EU-level sustainability reporting standards, which are essential to the application of the Directive, are currently in draft form, but will play a key role in the implementation of reporting.
The impact of the CSRD:
More than 50 000 businesses across the EU will be affected by reporting obligations
The new reporting directive requires verification of reported data, and a stronger specification of the reporting process
The Directive requires a double materiality assessment, which means assessing impacts in two directions: the impact of the activities on the environment and society, and the impact of sustainability factors on the activities
The Directive's obligations are complemented by the EU Sustainability Reporting Standards (ESRS), which are still in draft form and will be adopted in the first half of 2023
Now is the time to assess the impact of the Directive on business and prepare for increased reporting obligations. In addition to the mandatory obligations, many stakeholders require sustainability to be addressed through communication, reports and information sharing.
Please make sure as soon as possible that your company complies with the new Sustainability Reporting Directive. Fondia's experts will help your company to manage the legal developments in sustainability in a proactive and business-oriented way.