The importance of sustainability is continuously increasing. This includes ESG factors, meaning environmental aspects (Environmental), social and labor law aspects (Social) as well as the governance of companies and their supply chain (Governance). This also has a significant impact on the business model of many companies. Customers, investors and market partners expect companies to be aware of the environmental and social impact of their actions. In addition, sustainability risks, measures and key figures must be made credibly transparent as part of sustainability reporting.
The CSRD fundamentally reforms the previous EU directive on sustainability reporting, the "Non-Financial Reporting Directive" (NFRD), which was implemented in Austria by the NaDiVeG („Nachhaltigkeits- und Diversitätsverbesserungsgesetz“). The CSRD, which is to be transposed into national law, will therefore replace the existing NaDiVeG in the future. The group of companies affected will be significantly expanded. The NaDiVeG stipulates a reporting obligation for large, listed companies with more than 500 employees. Under the CSRD, all large companies are now included, i.e. also those without a stock exchange listing and with fewer than 500 employees. The extended group of users of the CSRD also influences the group of users of the EU Taxonomy Regulation, as all companies are obliged to report on sustainability must also provide information in accordance with Article 8 of the EU Taxonomy Regulation.
Directive on due diligence obligations for supply chains
In addition, companies with international supply chains are already affected by national supply chain laws, for example in Germany or the Netherlands. These aim to identify potentially negative effects on the environment and human rights in the supply chain and establish corporate due diligence obligations for these. With the CSDDD (Corporate Sustainability Due Diligence Directive), a proposal for a directive on the due diligence obligations of companies for their supply chains has been available since February 2022, which goes beyond existing national laws and is also intended to cover indirect suppliers.
EU Taxonomy Regulation
The EU Taxonomy Regulation has created a classification system for environmentally sustainable economic activity that establishes a recording and reporting system for economic activities and the associated contribution to achieving defined environmental goals.
The above-mentioned regulatory requirements are constantly being developed and supplemented by further legal acts. Our sustainability experts support you in the concrete implementation of current requirements.
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In our folder, you can find out how we can help you to successfully develop your sustainability strategy and prepare your sustainability reporting in compliance with regulations. Our Sustainability Audit Services create security and trust.
Road to CSRD
The first-time reporting obligation under CSRD relates to the financial year beginning on or after the specified reporting date. Under certain conditions, there is an exemption option for subsidiaries if they are included in the consolidated management report of their parent company (group privilege). There is no exemption for large listed subsidiaries.