🚨🌏🌱The Corporate Sustainability Reporting Directives (CSRD) was founded on 10 November finally adopted by the EU Parliament. Today the proposal was adopted by the European Council. 🚨🌏🌱
With the introduction of the new EU Sustainability Reporting Directive (CSRD), the number of companies required to report in Germany and the EU as a whole is increasing sharply and represents a significant expansion of the requirements for sustainability reporting.
The objective of the CSRD is to ensure that companies provide reliable and comparable sustainability information based on uniform standards. In particular, transparency should be improved in order to encourage investment in sustainable technologies and companies.
For this purpose, it was necessary to revise the existing directive on the disclosure of non-financial information (Non-Financial Reporting Directive - NFRD) and to expand the regulatory requirements. The origin of this development is the commitment to the EU Green New Deal and the associated aspiration to build a sustainable, fair and stable economic system in Europe.
For the companies concerned, the new requirements mean a significant expansion of the scope of the report content. In addition, publication must now be made in the annual report. The directive is being implemented using the binding EU standards for sustainability reporting (European Sustainability Reporting Standards - ESRS), which are being developed by the European Financial Reporting Advisory Group (EFRAG). Last week, the EFRAG Sustainability Reporting Board (SR Board) published the first part of the final European Sustainability Reporting Standards ESRS drafts and submitted them to the European Commission. In the coming year, EFRAG will develop a separate set of standards for small and medium-sized capital market-oriented companies.
The CSRD also incorporates the EU taxonomy and its structure has been aligned with the Regulations of the Reporting Directive to the Task Force on Climate-related Financial Disclosures (TCFD) and to the International Sustainability Standards Board (ISSB).
The member states are obliged to transpose the requirements into national law within 18 months. It is therefore crucial for all affected companies to begin preparations for the implementation of the CSRD as soon as possible in order to ensure compliance with the new reporting requirements and at the same time meet the continuously increasing sustainability demands of customers, business partners and investors.
MOORE TK supports companies of all sizes and stages of development for which sustainability reporting is relevant. Given the complexity of the topic, an end-to-end perspective is essential.
👉🏻👉🏻👉🏻 Is your company affected by the CSRD or is sustainability relevant to you? We will work with you to successfully implement and execute it. ESG & Sustainability Reporting
