Sustainability reports to be compulsory in the EU
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The Council of the European Union aims to make it compulsory for companies in the EU to report their corporate sustainability performance. The ‘Corporate Sustainability Reporting Directive’ (CSRD), will impact all large companies and their subsidiaries active in the EU. Many small and medium enterprises (SMEs) will also be affected. However, listed SMEs can opt out during a transitional period and gain exemption until 2028. Non-European companies with a net annual turnover within the EU of EUR 150 million or more, or with a branch or subsidiary located in the EU will also have to comply.
The CSRD requires that in 2024, detailed information will have to be compiled on how business models affect sustainability, in addition to ways that climate change, human rights issues and other external factors influence their activities. By the following year, companies will need to present on the previous year’s information.
This article was originally published on page 3 of the December 2022 issue of SATRA Bulletin.