Sustainable news
All large companies in the EU will need to disclose data on the impact of their activities on people and the planet and any sustainability risks they are exposed to.
The Corporate Sustainability Reporting Directive (CSRD), adopted on November 10 will make businesses more publicly accountable by obliging them to regularly disclose information on their societal and environmental impact. This would end greenwashing, strengthen the EU’s social market economy and lay the groundwork for sustainability reporting standards at global level.
New EU sustainability standards
These rules address shortcomings in existing legislation on the disclosure of non-financial information (NFRD), perceived as largely insufficient and unreliable. The CSRD introduces more detailed reporting requirements on companies’ impact on the environment, human rights and social standards, based on common criteria in line with EU’s climate goals. The Commission will adopt the first set of standards by June 2023.
To ensure companies are providing reliable information, they will be subject to independent auditing and certification. Financial and sustainability reporting will be on an equal footing and investors will have comparable and reliable data. Digital access to sustainability information will also have to be guaranteed.