CSRD update August 2023
On 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force. Companies subject to the CSRD will have to report according to European Sustainability Reporting Standards (ESRS). Do you want to know more about EU legislation who have impact on the textile and clothing companies? Check our overview with 16 legislations. Here you can also find more information about CSRD.
Reporting timetable
Companies will have to start reporting under ESRS according to the following timetable:
- Companies previously subject to the Non-Financial Reporting Directive (NFRD) (large listed companies, large banks and large insurance undertakings – all if they have more than 500 employees), as well as large non-EU listed companies with more than 500 employees:
Financial year 2024, with first sustainability statement published in 2025.
- Other large companies (> 500 employees), including other large non-EU listed companies:
Financial year 2025, with first sustainability statement published in 2026.
- Listed SMEs, including non-EU listed SMEs: financial year 2026, with first sustainability statements published in 2027. However, listed SMEs may decide to opt out of the reporting requirements for a further two years.
The last possible date for a listed SME to start reporting is financial year 2028, with first sustainability statement published in 2029.
At least two of the three following criteria: balance sheet total: €20 milion, net turnover: €40 million, average number of employees during the financial year: 250.
- Non EU branch, turnover > €150 million in EU or EU branch turnover > €40 million in EU, reporting over financial year 2028
How to report?
Reporting will have to be done in 3 layers:
- Sector agnostic
- Sector specific
- Entity specific
12 ESRS, covering the full range of sustainability issues:
|
Group |
Number |
Subject |
|
Cross-cutting |
ESRS 1 |
General Requirements |
|
Cross-cutting |
ESRS 2 |
General Disclosures |
|
Environment |
ESRS E1 |
Climate |
|
Environment |
ESRS E2 |
Pollution |
|
Environment |
ESRS E3 |
Water and marine resources |
|
Environment |
ESRS E4 |
Biodiversity and ecosystems |
|
Environment |
ESRS E5 |
Resource use and circular economy |
|
Social |
ESRS S1 |
Own workforce |
|
Social |
ESRS S2 |
Workers in the value chain |
|
Social |
ESRS S3 |
Affected communities |
|
Social |
ESRS S4 |
Consumers and end users |
|
Governance |
ESRS G1 |
Business conduct |
Timeline ESRS
If there will be no objections, the acceptance of the ESRS enter into force by the end of December and start applying as of 1 January 2024. In the meantime, EFRAG is working on implementation guidance on materiality assessment and value chain disclosures. These should be published this autumn. Sector specific, SME specific and non EU specific ESRS are expected to be adopted mid 2024.
Even if your company is not subject to mandatory reporting, you still may wish or have to report for various reasons.
>> Read the European commission’s Q&A
Save the date - round table October 10th
We invite you to our open discussion on October 10th. During this round table, we would like to exchange experiences as well get insight what Modint can do for members on this topic. More information: Ronde tafel CSRD (Corporate Sustainability Reporting Directive) | Modint
