Agreement on CSRD after extensive negotiations

Agreement on CSRD after extensive negotiations

A provisional political agreement regarding the Corporate Sustainability Reporting Directive (CSRD), after an extensive negotiation process.

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Agreement on CSRD after extensive negotiations

The Council and the European Parliament reached a provisional political agreement regarding the Corporate Sustainability Reporting Directive (CSRD), after an extensive negotiation process.

CSRD is supposed to help with the transition to a more sustainable economy by replacing the current Non-Financial Reporting Directive (NFRD) with more extensive and clearer regulations regarding sustainability reporting based on ESG.

In the agreed proposal, they have settled on a gradual implementation of the regluatoin, based on the size of the company:

  • 1 January 2024 for companies already subject to the non-financial reporting directive;
  • 1 January 2025 for companies that are not presently subject to the non-financial reporting directive; and
  • 1 January 2026 for listed SMEs, small and non-complex credit institutions and captive insurance undertakings.

An opt-out will be possible for SMEs during a transitional period, meaning that they will be exempted from the application of the directive until 2028.

The requirements will also apply for non-European companies that have a turnover of EUR 150 million in the EU and which have at least one subsidiary or branch in the EU. 

Contact us:

Ieva Kustova, Head of ESG & Sustainability, KPMG in Latvia

© 2023 KPMG Baltics SIA, a Latvian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

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