EU Sustainability Reporting

EU Leading the way in Mandatory Corporate Sustainability Reporting

Certitude Sustainability, Uncategorized , ,

Last year the EU introduced of the Corporate Sustainability Reporting Directive (CSRD). This new framework will be rolled out from 2024, and will require companies to report on how sustainability issues impact their business and how their operations affect people and planet, together with governance elements, and must specifically include:                            

  • Environmental matters – including climate risk reporting. 
  • Social matters and treatment of employees.
  • Human rights.
  • Anti-corruption and bribery.
  • Diversity on company boards (age, gender, educational and professional background).

These reports must be independently assured to ensure they are accurate and complete.

Approximately 50,000 companies are expected to be obligated under CSRD, this includes:

  • Companies listed in the EU, and large companies (one that meets two out of three of the following criteria: more than 250 employees, a turnover of over €40 million and over €20m total assets).
  • Listed SMEs. 
  • Non-EU companies with a net turnover of €150 million in the EU, and with at least one subsidiary or branch in the EU.

CSRD requirements will be introduced in phases:

From 1/1/24Companies already reporting under the Non-Financial Reporting Directive (reports to be submitted in 2025 covering 2024 data)
From 1/1/25Large companies that are not currently subject to NFRD (reports to be submitted in 2026 covering 2025 data)
From 1/1/26Listed SMEs, small and non-complex credit institutions and captive insurance undertakings (reports to be submitted in 2027 covering 2026 data).
From 1/1/28Applicable non-EU companies. (report to be submitted in 2029 covering 2028 data).

If you need help in your preparations for CSRD, please don’t hesitate to contact us.  We have a wealth of experience with company reporting from a GHG, Sustainability and a CSR perspective as both consultants and independent assurers.  Let us help you build your reporting requirements into your core business processes and provide clarity for all your stakeholders.