From 2024, all large European companies must report on their corporate sustainability in alignment with the new EU Corporate Sustainability Reporting Directive (CSRD).
The directive and required reporting has two main parts: how the company is affected by sustainability risks such as climate change, and the company’s own impact on society and the environment. EU Commission’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union informs on their webpage that,
“On 5 January 2023 the Corporate Sustainability Reporting Directive (CSRD) entered into force. This new directive modernises and strengthens the rules about the social and environmental information that companies have to report. A broader set of large companies, as well as listed SMEs, will now be required to report on sustainability – approximately 50 000 companies in total.” (Link to webpage)
Even if the new directive does not address SME’s directly – it is likely that it has an impact on industry and businesses as a whole.Download the directive in all European languages here.