Summary: The Corporate Sustainability Reporting Directive, the EU legislation that sets out environmental, social and governance reporting requirements for organisations, has passed its final legal hurdle. Starting in 2025, companies will start reporting under the "new" rules, with most companies covered by 2029.
Why this is important: While formal reporting does not start until 2025 (for the 2024 financial year), the scale of the work means companies really need to start soon, even though much detail is lacking.
The big theme: The consensus among politicians and lobby groups is that one of the big barriers to getting companies to apply ESG best practice is the absence of data. If you measure and report it, in a consistent and comparable way, companies will act on it. And improved reporting will provide investors and other stakeholders with the tools they need to push for change. Globally, we are seeing a big push by regulators to make sustainability reporting compulsory and consistent.
Summary of a story from The European Council
The European Council has recently formally approved the Corporate Sustainability Reporting Directive. After being signed by the President of the European Parliament and the President of the Council, it will be published in the Official Journal of the European Union and will enter into force 20 days afterwards. The new rules will need to be implemented by member states 18 months later.