On January 5, 2023, the Corporate Sustainability Reporting Directive (CSRD) came into force. This new Directive modernizes and reinforces the rules on the social and environmental information that companies must communicate. A broader set of large companies, as well as listed SMEs, will now be required to report on sustainability, approximately 50,000 companies in total.
The new rules will ensure that investors and other stakeholders have access to the information they need to assess investment risks arising from climate change and other sustainability issues. They will also create a culture of transparency about the impact of companies on people and the environment. Finally, information costs will be reduced for companies in the medium and long term by harmonizing the information that must be provided.
The CSRD directive also obliges companies to have an audit of the sustainability information they report. In addition, it provides for the digitization of information on sustainability.
Failure to comply with the CSRD reporting obligations may result in civil and/or criminal action.
For more information on this, you can consult the official website of the European Commission.