Corporate sustainability reporting

What the EU is doing and why

EU law requires companies above a certain size to disclose information on what they see as the risks and opportunities arising from social and environmental issues, and on the impact of their activities on people and the environment.

This helps investors, civil society organisations, consumers and other stakeholders to evaluate the sustainability performance of companies, as part of the European green deal.

The first companies subject to the Corporate Sustainability Reporting Directive (CSRD) have to apply the new rules for the first time in the 2024 financial year, for reports published in 2025.

Companies subject to the CSRD have to report according to European Sustainability Reporting Standards (ESRS). The standards are developed in a draft form by the EFRAG, previously known as the European Financial Reporting Advisory Group, an independent body bringing together various different stakeholders.

On 26 February 2025, the Commission adopted a package of proposals to simplify EU rules and boost competitiveness. Among other things, the package proposes to apply the CSRD only to the largest companies (those with more than 1000 employees), focusing the sustainability reporting obligations on the companies which are more likely to have the biggest impacts on people and the environment. Moreover, it seeks to ensure that reporting requirements on large companies do not burden smaller companies in their value chains.

Relevant legislation