European Union - Corporate Sustainability

As part of the EU’s new growth strategy, named The Green Deal, the European Commission made a commitment to review the provisions regarding non-financial reporting for businesses. The Directive reminds us in its preamble that The Green Deal “aims to transform the Union into a modern, resource-efficient and competitive economy where all regions and EU citizens participate in a socially just transition to a sustainable economic system” – and much more. In order to achieve that, the Commission is convinced that better sustainability reporting will benefit citizens and investors, as it will provide them clear guidance for respectively their social dialogue and asset management strategies. It has therefore broadened the scope of companies and undertakings subject to obligatory non-financial reporting, and enlarged the content of their mandatory reporting requirements.

A first step for your business will be to verify whether you do indeed qualify as an undertaking subject to the Directive – or not. If you are, then despite the fact that the EU’s member states still need to adopt national legislation in line with the Directive, you should start preparing now.

To read more:  https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32022L2464