Corporate Sustainability Reporting

The Corporate Sustainability Reporting Regulations 2024 transpose the Corporate Sustainability Reporting Directive (EU) 2022/2464 which arises from the European Green Deal’s climate change action objectives, to further enhance the disclosure by companies on climate and environmental data.

Scope and timeline

The regulations came into effect on 6 July 2024 and commence for financial years on or after:

1 January 2024 for public interest entities in scope of EU non-financial reporting rules (greater than 500 employees)
1 January 2025 for other large companies (at least 2 of balance sheet greater than €25 million, turnover greater than €50 million and employees greater than 250)
1 January 2026 for listed SMEs, with an ‘opt out’ possible until 2028

Companies in scope will be required to report on a double materiality basis. This means that companies will have to disclose not only the risks they face from a changing climate and other ESG matters (financial materiality), but also the impacts they themselves may have on climate and society (impact materiality). Companies will also have to provide information on their value chain. To assist companies with the transition to the new requirements, for the first three years of reporting, where information on the value chain is not available, they may elect to explain their inability to obtain the information.

Guidance on implementation

To further assist companies in the implementation of the new rules, the European Commission has published FAQs on the implementation of corporate sustainability reporting rules.

Information you need to provide

The new reporting requirements are underpinned by European Sustainability Reporting Standards (ESRS) developed by EFRAG and adopted by the European Commission.

There are 12 standards in total – 2 cross-cutting standards and 5 on the environment, 4 on social matters and 1 on governance. EFRAG has developed a suite of practical guidance for companies to assist in implementing the new rules. You can also submit questions and read EFRAG answers on its ESRS Q&A Platform.

Government sustainability supports

All businesses are encouraged to avail of government sustainability supports. For further information see the National Enterprise Hub and Sustainable Business.

Corporate Sustainability Reporting Regulations

Scope and timeline

Guidance on implementation

Information you need to provide

Government sustainability supports

Related links