15 Jul Mandatory sustainability reporting
Mandatory sustainability reporting
15 July, 2022
In 2021, the European Commission published the Corporate Sustainability Reporting Directive (CSRD). The European Commission’s intention in doing so is to require companies to include sustainability reporting in their annual reports. For large companies, it is expected to come into force from fiscal years ending in calendar year 2024. For small and medium-sized enterprises, the obligation will probably follow three years later. Sustainability is firmly on your agenda. Sustainability reporting can be added to that.
In general terms, the CSRD requires reporting on various matters related to Environmental, Social and Governance (ESG) data. The specific standards are currently being developed and are expected to be adopted in the second half of 2022. The accountant is asked to provide assurance concerning the reliability of the reports.
To whom does the CSRD apply?
The CSRD will initially apply to listed companies and companies that meet at least two of the three following criteria (designated ‘large companies’):
- More than 250 employees
- More than €40 million turnover
- More than €20 million balance sheet total
Three years after the introduction for these companies, medium-sized and small enterprises will follow. If your company falls into one of the latter categories, bear in mind that the directive will become relevant to you before then. This has to do with the fact that companies have to report on their entire chain (from raw material to finished product).
When will the CSRD come into force?
For listed companies and companies that meet the aforementioned criteria, the CSRD will take effect from 2024. For small and medium-sized enterprises, it is expected to apply three years later.
Do you want to know whether and how the CSRD applies to your company? Feel free to get in touch with your regular contact person at Joanknecht or Job van den Heuvel (firstname.lastname@example.org or +31 040 240 9445) or Edwin Vogel (email@example.com or +31 040 240 9515).