The European Union has released their Corporate Sustainability reporting rules for 2024. Here's how they will change the day to day operations of all companies in Europe!
The CSRD (corporate sustainability reporting directive) is part of the Union's 2030 Agenda for Sustainable Development and the SDGs. As corporations are seen as a major contributing factor in the accelerated climate change that impacts day to day life in Europe, this is an important directive. The European commission has implemented new proposals, starting from Jan. 1st 2024 and coming into full effect of Jan. 1st 2026.
Sustainable development goals 2030
Since its incorporation as a general goal of EU policy in the Treaty of Amsterdam about 20 years ago, sustainable development has been one of the main aims of the European Union. The Treaty of European Union lays out the EU's plan for ensuring Europe's long-term prosperity through balanced economic growth and price stability; a highly competitive social market economy; the pursuit of full employment and social progress; and a commitment to a high standard of environmental protection and the enhancement of environmental quality.
The EU Sustainable Development Strategy, the EU 2020 Strategy, and the EU Better Regulation Agenda all contribute to the EU's efforts to integrate sustainable development into its policies and laws. Sectoral initiatives, such as the 7th Environment Action Programme, reflect this trend. There has been a concomitant increase in the involvement of Member States and other stakeholders as a result of these initiatives, which is essential for a smooth rollout.
The proposals include:
- To extend the scope to all large companies and all companies listed on regulated markets (except listed micro-enterprises)
- Require an audit (assurance) of all of the reported information
- Introducing more detailed reporting requirements, and a necessity to report according to mandatory EU sustainability reporting standards.
- Require companies to digitally ‘tag’ the reported information, so it is machine readable and feeds into the European single access point envisaged in the capital markets union action plan.
How to start
Do you have no idea how to start your own company sustainability audit? We are excited to announce Greenifs - a service that will allow you to report and account all of your sustainability goals and measures and put them in a single database! We will then generate fully automated monthly audit reports. You can use them to submit them to the EU, your local authorities, or use it internally as part of your ESG reporting. Interested in finding out more? Check out Greenifs!