Corporate Sustainability Reporting Directive, known as CSRD:
- connects measures to achieve the goals of the European Green Agreement (e.g. mitigation of climate change and adaptation to this change) and an action plan on financing sustainable growth (e.g. strengthening transparency and uniformity of reporting),
- sets new thresholds (turnover, asset size, number of employees) for companies falling under the reporting of nonfinancial information in the environmental, social and management area (ESG reporting),
- specifies the rules and requirements for participants and for the information that companies must report to be consistent, comparable, reliable and easily accessible in order to prevent uncontrolled publication of embellished or irrelevant/unverified information.
Parties involved - users of sustainability information that must be disclosed in the annual reports of companies:
- banks, insurance companies, investors, including asset managers for understanding the risks and sustainability opportunities for their investments, and impact evaluation of these investments on people and the environment.
- nongovernmental organizations and social partners, citizens to increase the level of corporate responsibility for their impact on people and the environment.
- Other e.g. business partners, employees, competition
The directive enters into force at the national level only after the member states adopt legislation for its transposition. The CSRD directive and its requirements have been transposed to Slovak legislation, specifically through amendments to Act No. 431/2002 Coll. on accounting as amended by n.p. and to Act No. 423/2015 Coll. on the statutory audit as amended by n.p.
In order to familiarize our clients, we have prepared a basic package of information for orientation in the threshold values, whether companies fall under the obligation of ESG reporting according to the CSRD directive, about the format of submitting the reported information, including a description of the categories of mandatory ESRS standards.
