Corporate sustainability reporting rule in effect
The European Union Corporate Sustainability Reporting Directive (CSRD) has been signed into law by Minister for Enterprise, Trade and Employment Peter Burke TD, coming into effect for Ireland on July 6, 2024.
The CSRD requires that all large companies and all listed companies (except listed micro-enterprises) report sustainability information in accordance with European Sustainability Reporting Standards in their annual directors’ report.
The Directive is the EU’s response to the global reframing of company reporting to include environmental, social and governance matters arising from the European Green Deal and the EU Action Plan for Financing Sustainable Growth. It harmonises the EU rules for sustainability reporting by companies, to put this on the same footing as financial reporting, ensuring investors and other stakeholders have access to information to assess investment risks arising from climate change and other sustainability issues.
Minister Burke said:
“These Regulations provide a helpful structure to companies for preparing sustainability reporting in a clear and consistent way, that gives the relevant information to investors, consumers, and other stakeholders”.
Minister of State for Trade Promotion, Digital and Company Regulation, Dara Calleary TD, said:
“The Regulations play an important role in addressing risks posed by climate change to financial systems, and in channelling future investments and consumption towards companies that have a clear sustainability focus. The Regulations will be highly useful to the companies, and to investors and consumers alike, and bring predictability for all stakeholders in this valuable aspect of Ireland’s active response to the climate agenda at national and European level.”
The new rules will be phased in for financial years from 2024-2028. The directors’ report must be produced in single electronic format, subject to a limited assurance or audit, ahead of sustainability assurance standards by the European Commission due by 2028.
- Further information on the qualification of a company as micro-company is available from the Irish Statute Book: irishstatutebook.ie/eli/2024/si/301/made/en/print
Read more on the Department of Enterprise, Trade and Employment website.
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