The Corporate Sustainability Reporting Regulations 2024 transpose the Corporate Sustainability Reporting Directive (CSRD) which arises from the European Green Deal’s climate change action objectives, to further enhance the disclosure by companies on climate and environmental data.
About CSRD
CSRD is the EU’s response to the global reframing of company reporting to include environmental, social and governance matters. It entered into force in January 2023 and arose from the European Green Deal and the EU Action Plan for Financing Sustainable Growth.
The aim of the CSRD is to harmonise the EU rules for sustainability reporting by companies. It ensures that investors and other stakeholders have access to information to assess investment risks arising from climate change and other sustainability issues. While it is in essence a reporting directive, its impact aims to contribute to a more strategic and focused approach across companies on sustainability matters.
As it currently stands (prior to the agreement of the Omnibus proposals – see below), the Directive expands the scope of the existing EU rules for non-financial reporting by very large public-interest entities to large companies, large public-interest entities, and listed SMEs (excluding micros) on a main EU stock market. Subsidiaries and large branches of non-EU companies with a significant presence in the EU will also be required to produce an equivalent sustainability report. The new rules will be phased in between 2024 and 2028.
Companies in scope will be required to report annually in their directors’ report on environmental, social and governance (ESG) and human rights matters according to EU mandatory standards entitled European Sustainability Reporting Standards (ESRS).
The directors’ report must be produced in single electronic format by digitally tagging the information making it more amenable to digital analysis. The information reported will be subject to assurance (audit) and statutory auditors can qualify to carry out the assurance of sustainability reporting. Member states may also provide for independent audit assurance providers (IASPs) to carry out the assurance.
European Commission Omnibus proposals
The work programme of the European Commission for 2025 indicated the intention to bring forward a number of so-called 'Omnibus' packages and simplification proposals in the context of strengthening EU competitiveness.
The first of these Omnibus packages (Omnibus I and II) was published on the 26 February 2025 with the aim of balancing the EU’s ambition towards a sustainable transition with the enhancement of EU companies’ competitiveness. The package of proposals includes amendments to the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), the Carbon Adjustment Mechanism (CBAM), and the InvestEU Regulation and is accompanied by a draft Taxonomy Delegated Act for public consultation.
The Department of Enterprise, Tourism and Employment has responsibility for both the CSRD and CSDDD and is supportive of their objectives which aim to promote responsible business conduct.
The ‘Stop the Clock’ Directive
The European Union (Corporate Sustainability Reporting) Regulations 2025 gives legal effect in Ireland to the EU’s ‘Stop the Clock’ Directive on the CSRD which postpones by two years the reporting requirements on so-called Wave 2 and Wave 3 companies, while the European Commission’s Omnibus package is being negotiated.
Related press release: Regulations to give effect to EU Directive on cutting red tape and simplifying obligations in relation to corporate sustainability reporting
Policy making timeline
EU rules require large companies and listed companies to publish regular reports on the social and environmental risks they face, and on how their activities impact people and the environment. For further information on CSRD and the policy making timeline, refer to the European Commission’s CSRD information page: Corporate sustainability reporting - European Commission
Government sustainability supports
All businesses are encouraged to avail of government sustainability supports. For further information see the National Enterprise Hub and Sustainable Business.
Related links
Corporate Sustainability Reporting Regulations 2024
Corporate Sustainability Reporting (No 2) Regulations 2024