Overview
EU law requires large companies to disclose certain information on the way they operate and manage social and environmental challenges.
This helps investors, consumers, policy makers and other stakeholders to evaluate the sustainability performance of large companies and encourages these companies to develop a responsible approach to business.
Directive (EU) 2022/2464 – also called the Corporate Sustainability Reporting Directive (CSRD) – lays down the rules on disclosure of sustainability and diversity information by large companies. This directive amends the accounting directive 2013/34/EU. Companies are required to include sustainability statements in their annual reports from 2025 onwards (covering financial year 2024).
Companies that must comply
EU rules on sustainability reporting apply to large public-interest companies with more than 500 employees, as well as many more companies in a phased rollout. This covers approximately 50,000 companies and groups across the EU, including
listed companies
banks
insurance companies
other companies designated by national authorities as public-interest entities
Information to be disclosed
Under Directive (EU) 2022/2464, large companies have to publish reports on the policies they implement in relation to
environmental protection
social responsibility and treatment of employees
respect for human rights
anti-corruption and bribery
diversity on company boards (in terms of age, gender, educational and professional background)
How to report
Directive (EU) 2022/2464 requires companies to disclose relevant information in their management report using European Sustainability Reporting Standards (ESRS). Companies may also consider international, European or national guidelines when preparing their statements – for instance, they can rely on
the UN Global Compact
the OECD guidelines for multinational enterprises
ISO 26000
In June 2017 the European Commission published its guidelines to help companies disclose environmental and social information. These guidelines are not mandatory and companies may decide to use international, European or national guidelines according to their own characteristics or business environment.
In June 2019 the European Commission published guidelines on reporting climate-related information, which in practice consist of a new supplement to the existing guidelines on non-financial reporting, which remain applicable.
How we can help
Our organisation, being a third party reviewer, can audit your organisation and issue your statement of compliance in order to be ready for provision to the administration.