European Comission approves new rules on sustainability reporting for companies and multinationals

Europe. The Corporate Sustainability Reporting Directive (CSRD) approved by the European Parliament on November 28 will make companies more publicly accountable, obliging them to regularly disclose data about the impact of their activities on people and the planet and any sustainability risks to which they are exposed.

The new rules also apply to large companies, even if they are not European.

A significant improvement is also expected in the consistency of information on sustainability disclosed. This will inhibit greenwashing, strengthen the EU's social market economy and lay the groundwork for sustainability reporting standards globally.

Previously, in 2018, Parliament had asked for a review of disclosure of non-financial information (NFRD) and in 2020 presented its recommendations on sustainable corporate governance. The CSRD is one of the pillars of the European Green Deal and Sustainable Finance Agenda and part of a wider EU policy to commit business to respect human rights and reduce their impact on the planet.

Once the CSRD has been signed by the President of the European Parliament and the President of the Council, the legislative act will be published in the Official Journal of the European Union and will enter into force 20 days after its publication.

Click on the image below for an article from the European Parliament itself. And here for a brief analysis (in Portuguese) by the Mattos Filho law firm.