In June the European Parliament and the European Council have reached a provisional agreement on the Corporate Sustainability Reporting Directive (CSRD). That is, the legislation that regulates the criteria and methods on the basis of which companies must report on the adherence of their activities to certain sustainability criteria.
The new directive amends the previous Non-Financial Reporting Directive (NFRD, 2014/95/EU). The main objectives are:
- to curb greenwashing;
- to increase transparency and comparability;
- to enable the implementation of the Action Plan for Sustainable Finance and the Green Deal.
The main changes concern scope, auditing, reporting standards, the digital tag and the introduction of the concept of dual materiality. All large companies and all companies listed on regulated markets (excluding listed micro-companies) will be subject to CSRD.
Specifically:
- from 1 January 2024 for companies already subject to the CSRD;
- from 1 January 2025 for large companies that are not currently subject to the Non-Financial Reporting Directive;
- from 1 January 2026 for small and medium-sized listed companies, small and non-complex credit institutions and certain insurance companies, while other small and medium-sized companies can wait until 2028.
