Step by step for non-financial reporting

The EU has adopted a comprehensive framework for financing the transformation of the European economy to become sustainable and carbon neutral by 2050. As the new EU legislation brings with it a number of new non-financial reporting obligations for companies, we have prepared the first comprehensive guide in collaboration with the Prague Stock Exchange and the European Bank for Reconstruction and Development to help navigate the new legislation and provide an overview of best practice for preparing corporate sustainability reporting, including practical advice on the transition to the new CSRD/ESRS regulatory package.

One of the cornerstones of the EU approved framework is the disclosure of sustainability-related information (sustainability reporting), both by financial market participants and non-financial companies. The European Commission has therefore adopted the Corporate Sustainability Reporting Directive (CSRD), which sets out the rules for disclosure and establishes binding European standards (European Sustainability Reporting Standards). The new European standards represent a comprehensive regulation of sustainability reporting and fundamentally change the current practice. The aim in developing them was to remain consistent with the expected content of the reporting standards developed by the ISSB, as well as with the key elements of the Global Reporting Initiative (GRI) standards, international instruments and EU law requirements for corporate sustainability due diligence.

“The handbook alone will not solve the companies’ reporting. However, it will provide them with clear and understandable guidance and inspiration on how to develop sustainability reporting that not only complies with the CSRD requirements, but is particularly useful for the further development of their business,” 

explains Robert Adamczyk, Senior Environmental Advisor, EBRD 

Watch the full interview >

The introduction of the new sustainability disclosure obligation will affect both listed and unlisted companies with a balance sheet total of more than EUR 20 million, a turnover of more than EUR 40 million or more than 250 employees. These obligations will be phased in gradually, with mandatory reporting starting in 2025 (for 2024) for companies already reporting on sustainability under the European Non-Financial Reporting Directive (NFRD). All other affected companies, including SMEs listed on regulated markets, will have to comply in subsequent years depending on specific criteria.