The Council and the European Parliament reached a provisional agreement on the European Commission’s proposal for a Corporate Sustainability Reporting Directive (CSRD) which envisages the adoption of EU sustainability reporting standards.
The final text includes mandatory climate transition plans, ESG Standards, independent audit (limited assurance), and an opt-out clause for SMEs. They plan an application of the regulation in 3 stages
- January 1, 2024: for companies already subject to the NFR Directive
- January 1, 2025: for companies that are not presently subject to the NFR Directive
- January 1, 2026: for listed SMEs, small and non-complex credit institutions, and captive insurance takings.
The final text will be published soon.