EU Corporate Sustainability Reporting Directive: Businesses need to rethink

On 21 April 2021, the European Commission adopted a proposal for a Corporate Sustainability Reporting Directive (CSRD), which will eventually amend the existing reporting requirements of the Non-Financial Reporting Directive (NFRD). From 1 January 2024, companies that fall within the scope of the directive must adapt their reporting to the CSRD requirements for the 2023 financial year. The Ecovis experts explain exactly what companies must do.

Under the NFRD, large public-interest companies with more than 500 employees are obliged to report information about their entity’s handling of:

• Environmental matters
• Social matters
• Treatment of employees
• Respect for human rights
• Anti-corruption and bribery
• Diversity

We discuss with you how the CSRD affects your company and prepare you for the reporting obligations.

Dr Roberta Avellino Pulé, Senior Legal Consultant, ECOVIS Malta, Mosta, Malta

In its strong belief that consumers and investors alike deserve accurate information to assess the sustainability impact of businesses across the board, the European Union has proposed a directive, which:

• Extends the scope of reporting obligations to
  • All large companies meeting at least two of the following criteria:
    • 250 employees
    • EUR 40 million turnover
    • EUR 20 million total assets
  • All companies listed on regulated markets (except listed micro-enterprises)
• Requires the reported information to be subjected to an audit (assurance)
• Introduces more detailed reporting requirements
• Enhances accessibility of information through a dedicated section of company management reports

This newly proposed infrastructure under the CSRD will include the adoption of EU sustainability reporting standards, developed by the European Financial Reporting Advisory Group (EFRAG), which companies will be required to follow in their reporting obligations arising out of the directive.

For further information please contact:

Dr Roberta Avellino Pulé, Senior Legal Consultant, ECOVIS Malta, Mosta, Malta
Email: malta@ecovis.com