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illuminem summarizes for you the essential news of the day. Read the full piece on ESG Today or enjoy below:
🗞️ Driving the news: The European Commission has sent letters to 17 EU member states, initiating infringement procedures due to their failure to fully transpose the Corporate Sustainability Reporting Directive (CSRD) into national law
• The CSRD expands sustainability reporting requirements to over 50,000 companies, up from 12,000, under new European Sustainability Reporting Standards (ESRS)
• The deadline for transposition was July 6, 2024, but compliance remains incomplete in key countries like Germany, Spain, and Belgium
🔭 The context: The CSRD is a major update to the Non-Financial Reporting Directive (NFRD), mandating detailed disclosures on environmental, social, and governance (ESG) factors
• It applies to large companies from 2024, with smaller firms to follow in later years, and aims to harmonize sustainability reporting across the EU
🌍 Why it matters for the planet: Full implementation of the CSRD is essential to drive transparency in corporate sustainability, enabling investors to make informed, ESG-conscious decisions and helping the EU reach its climate and sustainability targets
⏭️ What's next: The 17 member states have two months to respond and comply, or the European Commission may escalate the matter, potentially bringing it to the Court of Justice to enforce penalties
💬 One quote: "In the absence of transposition of these new rules it will not be possible to achieve the necessary level of harmonisation of sustainability reporting in the EU," the European Commission stated
📈 One stat: The CSRD will increase the number of companies required to report on sustainability from around 12,000 to over 50,000
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