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.
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
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