As part of its flagship policy of the “European Green Deal”, the European Union has recently adopted the Corporate Sustainability Reporting Directive (“CSRD”) which will impose new reporting obligations on tens of thousands of EU and non-EU companies doing business in Europe.
This means that in-scope businesses will need to report on cross-cutting ESG issues, and make specific disclosures in relation to a wide range of issues including labour relations, lobbying activities, climate neutrality plans and targets, etc. Disclosures will have to comply with mandatory, sector-specific and detailed EU sustainability reporting standards to be adopted by the European Commission, and be audited (under ‘limited assurance’) by independent auditors.
Baker McKenzie has developed a CSRD tool to help you ascertain whether the directive is likely to be applicable for your business, the link to which can be found here:
