Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
ACCA has welcomed the adoption of the Corporate Sustainability Reporting Directive (CSRD) into national laws across Europe, which will initially apply only to large companies.
This means that companies subject to the CSRD will have to report according to the European Sustainability Reporting Standards (ESRS), and more specifically, that they will be required to report on the impact their activities have on society and the environment with an audit being conducted to “provide assurance that the statements fairly present the company’s position”.
While 6 July marked the deadline for EU member states to implement the CSRD into national legislation, many countries have not met the deadline.
Set to be introduced on a phased basis and based on size, the standards will be applicable to large companies from 1 January 2025. The CSRD will require businesses to review their operations and strategically plan in a way that “supports society and the environment, and helps create a more sustainable future”.
Fiona Murray, head of EU public affairs at ACCA, said: “The introduction of the ESRS is one of the most significant developments in the accounting profession in over 30 years. We would encourage any companies that have not yet reviewed their environmental footprint, to do so as a matter of urgency as it will increasingly influence the growth of their business in the years ahead.
“While the standards will apply initially only to large companies, the requirement for all organisations to conform to the directive will be in place by 2028. They must also be ready to provide information relating to their approach and progress in managing sustainability-related risks and opportunities for their businesses.”
She added: “Although these new requirements are challenging, evidence suggests the effort will bring environmental and social rewards. That is why ACCA would particularly encourage all SMEs to take small first steps and do what’s possible in communicating sustainability-related information with a view to becoming better businesses.”
