The European Parliament has adopted the Corporate Sustainability Reporting Directive (CSRD), which will oblige a wider range of EU companies to disclose data on the social and environmental impacts of their activities.
CSRD should provide more detailed and standardized disclosure of ESG information, its independent verification and audit.
Mandatory disclosure of social and environmental information will apply to about 50 thousand companies, it will be introduced gradually:
- from January 1, 2024 - for large companies of public interest (with more than 500 employees) already covered by the Non-Financial Reporting Directive (NFRD) (reports should be submitted in 2025);
- from January 1, 2025 - for large companies (with more than 250 employees, or with a turnover of 40 million euros, or assets for the amount of 20 million euros), which are not currently subject to the NFRD directive (reports should be submitted in 2026);
- from January 1, 2026 - for other issuing companies (reports should be submitted in 2027, small and medium businesses can get a time extension until 2028).
Foreign companies whose revenue in the EU exceeds 150 million euros will also have to comply with the requirements of the new directive.