On 28th November 2022, the Council formally adopted the latest version of the compromise found with the European Parliament and the European Commission on the proposal for a Directive on Corporate Sustainability Reporting (CSRD).
The European Commission presented the CSRD proposal on 21 April 2021 as part of the European Green Deal and the Sustainable Finance Agenda.
The CSRD will fill the gaps in the existing rules on non-financial information. Financial markets need access to environmental, social and governance information that is reliable, relevant and comparable if private capital is to be channelled into financing the green and social transition. Disclosure of sustainability information could attract additional investment and funding to facilitate the transition to a sustainable economy, as described in the Green Deal.
This paves the way for further implementation at national level of the CSRD, which puts in place increased reporting requirements on a number of sustainability items for a larger number of companies.
This means that today’s date marks the formal adoption of the CSRD. After its signature by relevant Ministers, it will be published in the European Official Journal and then Member States will have 18 months to transpose its provisions into their national laws.
Businesses will have to report on ESG standards, which are currently being defined by the EFRAG (European Financial Reporting Advisory Group), which will also feed into management reports of companies. Investors are looking more thoroughly at non-financial reporting items in order to make investment and business decisions and the implementation of the CSRD will also lead to new business opportunities for business information providers.
More information on the Council adoption can be found here: Council gives final green light to corporate sustainability reporting directive - Consilium (europa.eu)
Source: Press Release