During summer 2022, new sustainability regulation will come into force in the European Union.
What is the CSRD?
The Corporate Sustainability Reporting Directive (CSRD) is the long-awaited update to the existing Non-Financial Reporting Directive which, in 2014, created sustainability reporting and transparency obligations for a number of European companies, described below.
The CSRD broadens the scope of companies subject to sustainability reporting obligations, and aims to improve the quality of the information presented by imposing mandatory use of European Sustainability Reporting Standards and mandatory audit of reports prepared in accordance with the CSRD.
What was the announcement?
On June 22, 2022, the European Council and the Parliament, after a long period of negotiation, reached an agreement on a slightly revised version of the initial CSRD proposal, presented by the European Commission in April 2021.
The final text will be published soon and special attention will have to be paid to the details of the final provisions. These are the highlights that are known so far.