Companies will be required to provide qualitative and quantitative sustainability disclosures as part of mandatory common reporting measures under the European Union’s (EU) corporate sustainability reporting directive (CSRD) agreed to in November 2022, which amends the EU’s current nonfinancial reporting directive (NFRD). The directive was enacted on 5 January 2023, and member states will have until 16 June 2024, to transpose the directive into national laws. The first set of standards that companies must use will be published before 30 June 2023, and the largest companies will have to submit their first report in 2025 for the financial year starting on or after 1 January 2024. Reporting by other companies, including non-EU organizations with substantial EU turnover, will be phased-in. Approximately 50,000 companies are in the scope of the CSRD, compared with about 11,700 companies under the NFRD.
Management sustainability reports should cover all material information on environmental, social and human rights, and governance matters to enable diverse stakeholders’ understanding of how the organization impacts sustainability, and how sustainability impacts its development and performance. The information must be forward-looking, retrospective, qualitative and quantitative. Highlights of what should be included are as follows: