The same trend is observed at the EU level, where specific reporting rules have been in place (since 2014, the Non-Financial Reporting Directive - NFRD), which are now being amended this year with the new Corporate Sustainability Reporting Directive, aiming for more precise reporting by affected companies to assess the financial impacts of their sustainable business aspects.
Given that the CSRD directive this year affects the operations of almost all legal entities along the value chain (through amendments to the Accounting Act, Audit Act, and Capital Market Act), it is extremely important to familiarize students with this topic.
The CSRD - Corporate Sustainability Reporting Directive introduces significant changes regarding the disclosure of environmental, social, and governance information according to the European Sustainability Reporting Standards (ESRS). Entities will no longer be able to voluntarily choose which information to disclose and how. The first sustainability reports prepared according to ESRS standards will be published in 2025 for the financial year 2024. The first entities to report according to European sustainability reporting standards will be the current NFRD obligors, i.e., companies of public interest with over 500 employees. A year later, the obligation will apply to all large companies, and from 2028, all small and medium-sized companies listed on the stock exchange will also report on sustainability.
