Last year, the new Corporate Sustainability Reporting Directive (CSRD) was published and should enter into force this month, followed by the European Sustainability Reporting Standards (ESRS).
The new CSRD directive comprehensively defines obligations for sustainability in business operations and directs further development towards a sustainable world economy. The new directive shifts the focus to reporting on the sustainability of companies, instead of the previous focus on non-financial reporting. The aim of the CSRD directive is to make reporting on the sustainability of companies relevant, reliable and comparable at the level of the economic sector and the EU economy.
CSRD applies to all companies based in the EU, which meet two of the three conditions: to have more than 40 million euros in turnover, more than 250 employees and more than 20 million euros in assets. The EU estimates that CSRD will apply to around 50,000 companies.
Companies will be required to prepare non-financial reports in which they will show how their operations affect the environment, and all interested investors and regulators will be able to get an accurate picture of the company’s operations through the reports. The reports cover a wide range of ESG topics covered by ESRS standards, including issues of water, air, land pollution, circular economy, protection of human and labor rights, and corporate governance.
E2 portal
Source: www.e2.rs
