EU: Council adopts Corporate Sustainability Reporting Directive
The Council of the European Union announced, on 28 November 2022, the adoption of the Directive as regards corporate sustainability reporting ('the Corporate Sustainability Reporting Directive'), following the European Parliament's adoption on 10 November 2022. In particular, the Council explained that, in practical terms, companies will have to report on how their business model affects their sustainability, and on how external sustainability factors (such as climate change or human rights issues) influence their activities. Further to this, the Council highlighted that such reporting obligations will better equip investors and other stakeholders for taking informed decisions on sustainability issues.
Moreover, the Council specified that, after being signed by the President of the Parliament and the President of the Council, the Corporate Sustainability Reporting Directive will be published in the Official Journal of the EU ('OJEU') and will enter into force 20 days afterwards. Importantly, the Council pointed out that the new rules will need to be implemented by Member States within 18 months from the publication in the OJEU.
You can read the press release here.