Council of the European Union approves Corporate Sustainability Reporting Directive (CSRD)
02 December 2022
The Council of the European Union gave its final approval to the Corporate Sustainability Reporting Directive (CSRD), following which the legislative act was adopted. After being signed by the President of the European Parliament and the President of the Council, it will be published in the Official Journal of the European Union and will enter into force 20 days afterwards. The new rules will need to be implemented by member states 18 months later.
The CSRD and requires large companies and listed SMEs to report on sustainability matters such as environmental rights, social rights, human rights and governance factors. For non-European companies, the requirement to provide a sustainability report applies to all companies generating a net turnover of EUR 150 million in the EU and which have at least one subsidiary or branch in the EU exceeding certain thresholds.
The regulation will become applicable from financial year 2024 (reporting in 2025) in a phased manner.
The press release by the Council may be accessed here.