With the Corporate Sustainability Reporting Directive (CSRD) coming into force on January 1st 2024 there will a sea change in the field of sustainability reporting for corporates writes BDO’s former Managing Partner and current Head of Sustainability, Michael Costello.
He writes that in its scope and complexity CSRD is as at least equal to Financial Reporting. The first phase will see corporates currently subject to the EU’s Non-Financial Reporting Directive (NFRD) report on 2024 information in 2025 - this will impact on around 11,000 EU corporates - while the second phase will bring ‘large’ corporates into scope and will see an estimated 50,000 coporates caught in the CSRD net - the vast majority of whom will need to prepare to deal with a new type of framework they are not familiar with writes Costello. He outlines the steps in-scope companies should now be taking meet these new obligations.