The EU Corporate Sustainability Reporting Directive (“CSRD”), approved this week, 28 November, at EU level, marks the biggest transformation in corporate reporting in the last almost 20 years, when the first accounting regulations harmonized with International Accounting Standards (IAS) were launched in Romania.
However, companies are no longer assessed today from an economic-financial perspective, with commitments to ESG having to be integrated into an organization’s business strategy and mission in order to meet regulatory frameworks and expectations of corporate information users.
The CSRD has introduced wide-ranging changes to the reporting requirements, and also includes a much wider range of reporting companies within its scope. The implementation of these requirements is fundamental in supporting the stated objective of the European Commission to direct capital flows towards sustainable activities.
The Directive provides for information on issues such as the business model, its strategy and policies, key non-financial performance indicators and target indicators, company governance on sustainability issues, assessment of double materiality, risk management and ESG opportunities, as well as environmental (including European taxonomy) and social information, in line with European sustainability reporting standards.