The
Corporate Sustainability Reporting Regulations 2024 transpose the Corporate Sustainability Reporting Directive
(EU) 2022/2464 which arises from the European Green Deal’s climate change action objectives, to further enhance the disclosure by companies on climate and environmental data.
The regulations came into effect on 6 July 2024 and commence for financial years on or after:
- 1 January 2024 for public interest entities in scope of EU non-financial reporting rules (greater than 500 employees)
- 1 January 2025 for other larger companies and public interest entities (greater than 250 employees)
- 1 January 2026 for listed SMEs, with an ‘opt out’ possible until 2028
Companies in scope will be required to report on a double materiality basis. This means that companies will have to disclose not only the risks they face from a changing climate and other ESG matters (financial materiality), but also the impacts they themselves may have on climate and society (impact materiality). Companies will also have to provide information on their value chain. To assist companies with the transition to the new requirements, for the first three years of reporting, where information on the value chain is not available, they may elect to explain their inability to obtain the information.
For further details click
here.