The Corporate sustainability reporting directive (CSRD) reached final approval by the European Council in November 2022. After publication in the EU’s Official Journal, the new directive shall be adopted by member states with 18 months. The CSRD strengthens the existing rules on non-financial reporting, and requires companies to publish detailed information on the sustainability of their business. Four different application dates will apply, according to the specific characteristic of each interested company:
- reporting in 2025 (on financial year 2024) for companies already subject to the NFRD;
- reporting in 2026 (on financial year 2025) for large companies that are not currently subject to the NFRD;
- reporting in 2027 (on financial year 2026) for listed SMEs (except micro undertakings), small and non-complex credit institutions and captive insurance undertakings;
- reporting in 2029 (on financial year 2028) for third-country undertakings with net turnover above 150 million in the EU if they have at least one subsidiary or branch in the EU exceeding certain thresholds.
Source: European Council, https://www.consilium.europa.eu/en/press/press-releases/2022/11/28/council-gives-final-green-light-to-corporate-sustainability-reporting-directive