The EU Commission publishes frequently asked questions about the implementation of new corporate sustainability reporting rules

The European Commission has issued detailed guidelines on the implementation of the EU Corporate Sustainability Reporting Directive (CSRD). CSRD, introduced through Directive (EU) 2022/2464, aims to increase transparency and accountability by introducing new sustainability reporting requirements for certain companies.

Scope and Applicability

The CSRD applies to:

• Big businesses.
• SMEs (excluding micro-enterprises) with transferable securities admitted to trading on regulated EU markets.
• Parent companies of large groups.
• Some entities from third countries that have significant business operations within the EU.

These entities must prepare sustainability information in accordance with the European Sustainability Reporting Standards (ESRS) and ensure compliance with the requirements of the digital taxonomy. This information must be included in the company's management report and must be subject to limited assurance by statutory auditors or independent assurance providers (IASPs). (More on esgnews.com)