Consulting services on sustainable development and the New Reporting Norms ESRS

From 2024, new EU rules come into force where large companies (with over 250 employees and 40 million euro turnover) must publicly announce how they operate and manage social and environmental risks. We are ready to help any company that encounters difficulties in preparing its non-financial statements by providing knowledge, as well as resources from where such knowledge can be drawn, in order to cope on their own.

What are the new rules?

The Corporate Sustainability Reporting Directive amends the Non-Financial Disclosure Directive of 2014. It introduces more detailed reporting requirements and ensures that large businesses are required to disclose information on sustainability issues. such as environmental rights, social rights, human rights and governance factors.
The DOPU also introduces a requirement to certify the information published in connection with sustainability, as well as to improve the accessibility of the information, requiring its disclosure in a separate section of the enterprise’s activity report.

The European Financial Reporting Advisory Group (EFRAG) will be responsible for setting European standards based on technical advice from several European agencies.

Who will be covered by the directive?

EU rules on non-financial information apply to all large companies and all companies whose securities are listed on regulated markets. These entities are also responsible for evaluating information at the level of their subsidiaries.

The rules also apply to SMEs that are registered on the regulated markets, taking into account their specificities. During a transition period, a derogation (non-participation) will be possible for SMEs, meaning that they will be exempted from the application of the directive until 2028.

For non-EU companies, the sustainability reporting requirement applies to all companies with a net turnover of more than €150 million in the EU that have at least one subsidiary or branch in the EU. These enterprises must account for their impact in relation to ESU issues (ie environmental, social and governance) as defined in this Directive.Кой гарантира качеството на отчитането?
The reporting must be certified by an accredited auditor or independent certification body. In order to ensure that companies comply with the reporting rules, an auditor or an independent certification body is envisaged to ensure that sustainability reporting meets the certification standards adopted by the Union. The accounting of non-European companies must also be certified by a European or third-country auditor.

When do the rules apply?

The regulation will be implemented in three stages:

  • on January 1, 2024 for the enterprises to which the Directive on the disclosure of non-financial information already applies;
  • on January 1, 2025 for large enterprises to which the Directive on the disclosure of non-financial information does not currently apply;
  • on January 1, 2026 for SMEs that are registered on the regulated markets, as well as for small and uncomplicated credit institutions and captive insurance companies