Spenoki Roundup - The new EU Sustainability Reporting Rules (English version)

In April, the EU Commission published a press release which announced some significant changes to the rules regarding corporate sustainability reporting, the Corporate Sustainability Reporting Directive. 


In particular the following developments are worth bearing in mind:


  • The number of companies subject to mandatory reporting is to increase.
  • SMEs with securities listed on regulated markets will now be required to report. However, these SMEs will be allowed to report according to standards that are simpler than the standards that will apply for large companies.
  • Changes are to take effect from the 2023 reporting period.
  • External auditing of sustainability related disclosures will now be required.
  • Digital tagging of sustainability information is to be explored.
  • The changes embrace the ‘double materiality' principle, which has sometimes been overlooked by organisations which have determined to take a business-risk-only approach to reporting.


Rather than provide a re-interpretation or commentary of our own, Spenoki has gathered a few interesting articles and editorials in both German and English that have been compiled by others on the key topics of interest.


Full details directly from the commission can be found at their “Questions and Answers” page here: https://ec.europa.eu/commission/presscorner/detail/en/QANDA_21_1806



In German:

PWC Germany published a summary article, providing some further details on the key points relating to the EU announcement.

CSR-Richtlinie: Heute beginnt eine neue Ära in der Nachhaltigkeitsberichterstattung


The Mittlestandsverbund have commented on the proposals, taking into account specific needs of, and possible impacts to small and medium enterprises in Germany. The piece entitled “Nachhaltigkeitsberichterstattung: Neuer Vorschlag der EU-Kommission“ is here: https://www.mittelstandsverbund.de/politik/europa-internationales/d-nachhaltigkeitsberichterstattung-neuer-vorschlag-der-eu-kommission-516872128



In English:

GreenBiz Magazine discussed the concept of “Double Materiality” earlier this year. Their article entitled “Here's why companies should assess double materiality“  is here: https://www.greenbiz.com/article/heres-why-companies-should-assess-double-materiality 


The current European Single Electronic Format is to be used for the digital reporting of sustainability information. Details regarding the format are available from the European Securities and Markets Authority here: https://www.esma.europa.eu/policy-activities/corporate-disclosure/european-single-electronic-format


International Investment put the reporting changes into context with a number of other sustainability related regulatory moves with an eye on how this could impact financial and some suggestion for optimism in the battle against greenwashing: https://www.internationalinvestment.net/news/4030322/eu-sustainable-finance-rules-crucial-fight-greenwashing-net-zero-goals