Speciale Hannover Messe

16 SPECIAL HANNOVERMESS E 2023 In 2023, there will be a turning point in sustainability for European businesses. The final approval of the Corporate Sus- tainability Reporting Directive (Csrd) by the Council of the European Union on November 28th represents a fundamen- tal piece in the regulatory framework on sustainability. Detailed and stringent com- munication obligations on ‘environmental, social, and governance’ (ESG) aspects are introduced for large companies and listed SMEs, with inevitable implications for a large part of the production system. With the final approval to the Csrd new, standardized and detailed sustainabili- ty reporting are required by companies. The Csrd replaces, and exceeds all previ- ous sustainability reporting requirements, both in the number of companies affected - from around 12,000 today to approx- imately 50,000 - and in the scope of its reporting requirements. Companies will soon be required to pub- lish detailed information on sustainability matters. This will increase a company’s accountability, prevent divergent sustain- ability standards, and ease the transition to a sustainable economy. In practical terms, companies will have to report on how their business model affects their sustainability, and on how external sus- tainability factors (such as climate change or human right issues) influence their ac- tivities. This will equip investors and other stakeholders better for taking informed decisions on sustainability issues. The Csrd strengthens the existing rules on non-financial reporting introduced in the Accounting Directive by the 2014 non-fi- nancial reporting directive (NFRD), which are no longer tailored to the EU’s transi- tion to a sustainable economy. New reporting rules for companies The Csrd introduces more detailed re- porting requirements and ensures that large companies and listed SMEs are required to report on sustainability mat- ters such as environmental rights, social rights, human rights and governance factors. The new sustainability reporting rules will apply to all large companies and to all companies listed on regulated mar- kets except listed micro undertakings. The Council gave its final approval to the Corporate Sustainability Reporting Directive (Csrd). All large companies in the EU will soon be required to publish detailed information on sustainability matters. This will increase a company’s accountability, prevent divergent sustainability standards, and ease the transition to a sustainable economy Antonella Pellegrini Sustainable reporting: new rules approved