European Union

Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting (Corporate Sustainability Reporting Directive)

Legislative

Law

Passed in 2022

This Directive amends the previous directive governing the reporting of non-financial information in financial disclosures. It extends the scope of reporting obligations to a much wider set of companies headquartered or operating in the European Union. They new obligations will apply from the 2024 financial year.

The Directive requires member states to introduce measures to ensure that sustainability disclosures include information on plans and strategies to ensure a corporate entity's business model and strategy are compatible with the transition to a sustainable economy, the global temperate target of 1.5 Degrees, and the goal of achieving climate neutrality by 2050, as well as the exposure of the entity to coal, oil and gas.

The Commission is mandated to adopt delegated acts supplementing the Directive and providing sustainability reporting standards for both large entities and small and medium sized businesses. These shall specify that reporting should include scope 1, 2 and "where relevant" scope 3 greenhouse gas emissions. Businesses are also required to report on social and human rights factors. Reporting standards should be aligned with the work of the Task Force for Climate Related Financial Disclosures.

Documents

Link to Official Journal (English)