Making sense of sustainability reporting in a changing regulatory landscape
At this very moment, sustainability regulation is going through unprecedented changes: disclosures on impact information are moving from voluntary to mandatory. The Corporate Sustainability Reporting Directive (CSRD), first proposed by the European Commission in 2019, has been approved by both the European Parliament and Council of Ministers. The CSRD will go into effect from 2025, effectively requiring organisations to disclose on sustainability topics for financial year 2024 onwards.
Disclosure requirements include environmental, social and governance topics and integration of sustainability strategies. With up to 50.000 companies in the EU in scope, this is important legislation to help address crises such as climate change, biodiversity collapse and poverty. Sustainability regulation is instrumental in realising an impact economy – if done well. Delivering on the CSRD promise can accelerate impact-driven organisations.