Brussels, 10 November 2022
On the 10th of November, the European Parliament adopted the Corporate Sustainability Reporting Directive (CSRD) with 525 votes in favour, 60 votes against and 28 abstentions.
The aim of the CSRD is to oblige all large companies in the EU to regularly disclose information on their social and environmental impact, including human rights and social standards, based on common criteria.
The CSRD reporting will be based on common criteria. The Commission is expected to adopt the first set of standards by June 2023. The data provided by companies, should be subject to independent auditing and certification.
After the adoption of the proposal by the Council, it will be signed and published in the Official Journal of the EU. 20 days after its publication, the Directive will enter into force. The Directive will start applying between 2024 and 2028.
- From 1 January 2024 the rules will apply to large public interest companies which are already covered by the current non-Financial Reporting Directive. This means that the first report is due for 2025.
- As of 1 January 2025, all large companies will be covered by the CSRD-rules. Again, the deadlines for the reports are in 2026. Large companies have more than 250 employees and/or €40 million turnover and/or €20 million total assets.
- From 1 January 2026 onwards, the CSRD rules will apply to listed SMEs and other undertakings. Again the reports are due the year after, but SMEs can opt-out until 2028.
Source: European Parliament