On January 5, 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force.
This new directive modernises and strengthens the rules on social and environmental information that companies must report.
More large companies, as well as listed SMEs (around 50,000 companies), will be required to report on sustainability.
The new rules ensure stakeholders have access to the information needed to assess investment risks arising from climate change and sustainability issues.
Companies subject to CSRD will have to report in accordance with the European Sustainability Reporting Standards (ESRS). The draft standards are developed by EFRAG (European Financial Reporting Advisory Group).
The European Commission will adopt the first set of standards by mid-2023, based on the draft standards published by EFRAG.