The European Union has adopted the Corporate Sustainability Reporting Directive (Directive 2022/2464), which the Member States need to implement by 6 July 2024.
In short, starting from financial year 2024, large stock-listed companies in the EU will need to disclose their impacts on sustainability matters and explain how their environmental, social and governance (ESG) actions affect their businesses.
A company will be considered as a large one if it meets two of the following three criteria:
· Annual turnover exceeding 50 million EUR;
· Total assets of more than 25 million EUR; and
· More than 250 employees (averaged over a year).
From financial year 2028, all stock-listed companies in the EU including small and medium ones will need to comply with these requirements as well. Until 2028, these small and medium listed companies will simply need to state in their management report why the sustainability reporting was not provided.
Please, Contact CIS Management for further information.