In the European Union, the UK and elsewhere, key questions are being asked by EU-based companies caught by the CSRD in their financial year 2025, as well as entities with parent companies outside of the EU that are caught by CSRD.
The CSRD’s requirements will apply to companies that meet the relevant thresholds. The requirements will essentially require forward-looking and detailed environmental, social and governance (ESG) information to be disclosed in an assured sustainability report each year. Such reports must cover actual or potential material ESG liabilities for relevant legal entities and in some cases, disclosures are even required down to site level.
There is a lot of confusion around the date on which reporting obligations will apply to companies that pass the relevant thresholds. In summary, they have been/will be phased in on a staggered basis between 2024 and 2029; and apply irrespective of the sector in which a company operates.
Our handy guide explains the key challenges that we’ve been seeing for EU and other headquartered business that are impacted by these requirements and includes thresholds, when the obligations will apply, which reporting option companies should use and compliance obligations.
