The European Parliament has agreed to adopt the CSRD framework in a move towards increasing transparency on corporate governance, environmental and social impacts of listed firms.
The European Parliament has agreed to adopt the Corporate Sustainability Reporting Directive (CSRD), in a big step towards the implementation of a Europe-wide sustainability reporting system.
The adoption of the framework means that all large listed EU companies will need to disclose data on the impact of their activities on people and the environment, as well as any sustainability risks they are exposed to. This means around 50,000 companies will be subject to the new reporting rules, and will make the EU a front-runner in global sustainability and reporting standards.
The CSRD has been created to make companies be more transparent about the their environmental impact, as well as social affairs and governance matters, and will make reporting on these issues standard for large listed European firms. It is one of the cornerstones of the Sustainable Finance Agenda and the European Green Deal, and part of a wider initiative by the EU to make companies commit to reducing their impact on the environment.
It is expected that the proposal will be adopted on 28 November 2022. It will then be signed and published in the EU Official Journal. The directive will enter into force 20 days after publication, and the rules are expected to start applying between 2024 and 2028.
More information can be found in here in the official press release.