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ESG - New obligations for companies
Prosman & Pavlovič law firm prepared a Newsletter to inform you about the new obligations linked to the European Sustainability Reporting Directive.
On 10 November 2022, the European Parliament approved the long-awaited Sustainability Reporting Directive (CSRD or Corporate Sustainability Reporting Directive), which introduces new obligations for various groups of businesses, in particular with regards to sustainability reporting.
The aim of the CSRD is to promote economic growth while reducing pressure on the environment in order to help achieve climate and environmental goals. The CSRD sets different deadlines for different types of companies to apply the reporting obligation, while in general terms the different ESG application deadlines can be expressed as follows:
- from 2025, public interest entities with more than 500 employees are obliged to report and publish ESG information (sustainability information) for the year 2024,
- from 2026, large companies that meet at least two of the following three criteria will be required to report and disclose ESG information for the year 2025: (i) revenues of more than EUR 40 million, (ii) more than 250 employees and/or (iii) assets of more than EUR 20 million,
- from 2027, small and medium-sized enterprises whose shares are admitted to trading on a regulated market will be required to report and disclose ESG information for the year 2026;
- from 2029, third country entities with a net turnover of more than EUR 150 million will be required to report and disclose ESG information, provided they have at least one subsidiary or branch in the EU, for the year 2028.
Companies subject to the ESG Phase 1 obligation (point a) above) must therefore start collecting data as early as 2024!
The enclosed newsletter is capturing the basic concepts and responsibilities related to CSRD and ESG reporting obligations.
In case of any questions/implementation problems, the Prosman & Pavlovič law firm is ready to provide you with legal assistance in this area.
