Picture shows EUs green deal

CSRD endorsed by Parliament

Let’s talk about something that’s on everyone’s lips in the business world right now: the Corporate Sustainability Reporting Directive (CSRD). On Wednesday, May 29, the Swedish Parliament finally approved the proposal on how CSRD will be incorporated into Swedish legislation. Finally, we know which companies are covered and as of when: Fiscal years beginning on or after July 1, 2024.

As a result, many of the companies that are already well advanced in their preparations may choose to postpone reporting until 2025. But there is also a strong incentive for many to report as early as 2024 i.e. according to plan: they operate and are highly influenced by the world around them and thus have reason to enable comparisons with similar companies in the EU.

For those of you who have not yet familiarized yourself with CSRD, it is high time! Here is a quick summary:

The CSRD is a new EU regulation and milestone that requires certain companies to report in detail and comparably on sustainability. For the first time, there is a standard that makes the reports truly comparable.

Why is that important?

  • Increased transparency: the impact of companies on the environment and society becomes clear.
  • Better informed investment: Investors can make informed decisions based on comparable and reliable information. The EU wants to steer investment towards sustainable activities,
  • Contributing to a green economy: CSRD is part of the EU’s wider plan, the European Green Deal, which aims to make Europe climate neutral by 2050.

Scope of CSRD: The regulation covers a wide range of companies, from large multinationals to listed SMEs, as well as non-EU companies with significant activities in the EU.

What do businesses have to report on? Companies must now report on a range of environmental, social and governance (ESG) factors in more detail. This includes information on emissions, working conditions, human rights and much more. All of this must also be audited by a certified auditor to ensure the reliability of the reports, i.e. sustainability data is equated with financial data.

Summary: CSRD is not just about complying with regulations – it is an opportunity for companies to develop their business or operations for a sustainable future and strengthen the trust of customers and investors. It will put pressure on companies on sustainability issues and shape the business world for years to come.

More information on the decision is available on the Parliament’s website.