The EU Council and European Parliament announced that they have reached an agreement on the rules of the Corporate Sustainability Reporting Directive (CSRD).
The new agreement will require companies to have their reported sustainability information independently audited.
The rules will require disclosure under a common framework of European Sustainability Reporting Standards (ESRS), currently under development by the European Financial Reporting Advisory Group (EFRAG).
Under the new system, companies will be required to report on issues ranging from environmental rights and social rights to human rights and governance factors, and the information they provide will have to be independently audited and certified.
The agreement extends the reporting requirements to non-European companies that generate over €150 million in the EU.
The number of companies required to provide sustainability disclosures will probably expand the to over 50,000 from around 12,000 currently.
Press Release New rules on corporate sustainability reporting: provisional political agreement between the Council and the European Parliament, here.
