4th July 2023
Minister of State with responsibility for Company Regulation at the Department of Enterprise, Trade and Employment, Dara Calleary TD, today held a webinar to inform business of new responsibilities under the Corporate Sustainability Reporting Directive (CSRD).
The purpose of the webinar was to provide an update on the directive and its transposition into Irish law, including policy options arising from the public consultation held earlier in the year.
Speaking at the event, Minister Calleary said:
“Climate change is the single greatest challenge that we will face in our lifetimes. Climate and the economy have been thought of as separate and disconnected, but today we know they are now fundamentally intertwined. It is why we must act.
"The Corporate Sustainability Reporting Directive will play a central role in addressing risks posed by climate change to financial systems and in channelling future investments and consumption towards companies that have a clear sustainability focus.
“The new rules for sustainability reporting may be challenging at the outset, however, the requirements have been sequenced, whilst still maintaining ambition, to allow companies, and the accounting and audit industry time to understand the new standards, start measuring the relevant data, and deepen the knowledge and skills necessary.”
He continued,
“With more and more initiatives to address the impact of business on people and communities, the environment, and economies, I will also establish and chair a new sub-group of the Enterprise Forum on Responsible Business that will act as a link with industry and relevant stakeholders and will provide a platform for regular interaction between the Department and its agencies on these important matters.”
Concluding the webinar, Minister Calleary encouraged businesses to engage with ongoing consultations underway in the European Commission on the new Sustainability Reporting Standards
“The mandatory European Sustainability Reporting Standards will define the work that companies will undertake annually and as such, their importance cannot be overstated. The Commission is conducting a final public consultation on the sustainability reporting standards, and I would encourage the relevant stakeholders to engage with it and have your say.
"The CSRD came into effect on 5 January 2023. EU member states have 18 months in which to transpose the directive into law.”
Notes for Editor
Directive (EU) 2022/2464 of the European Parliament and of the Council, amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting.
Background
- The directive arises from the European Green Deal’s climate change action objectives, to further enhance the disclosure by companies on climate and environmental data.
- It expands the scope of the existing rules for non-financial reporting by very large companies and public-interest entities to large companies, large public-interest entities, and listed SMEs (excluding micros) on a main EU stock market.
- It introduces mandatory reporting standards developed by EFRAG (European Financial Reporting Advisory Group). Companies in scope will be required to report annually in their management/directors’ report on environmental, social and governance (ESG) and human rights matters according to the EU mandatory standards.
- Information reported on will require audit (assurance).
Timeline
Ireland and other member states have 18 months to transpose the directive, that is, mid 2024, with a view to mandatory requirements commencing for financial years on or after:
- 1 January 2024 for public interest entities in scope of the existing rules (greater than 500 employees)
- 1 January 2025 for large companies and public interest entities (greater than 250 employees)
- 1 January 2026 for listed SMEs, with an ‘opt out’ possible until 2028
ENDS
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