The European Union has stepped up setting rules to ensure carbon neutrality. The continent is set to achieve that target by 2050. Therefore, it is also strengthening the rules for non-financial reporting. The new directive encourages companies to take a responsible approach to business. They will monitor the impact of the business on the environment, access to employees and respect for human rights.
The new rules will affect hundreds of companies
In Slovakia, according to the new standards, sustainability must appear in its annual framework Reports from more than 600 companies. He imposes this obligation on them Guidance on the reporting of information on corporate sustainability (CSRD). Reporting will be mandatory for companies that meet at least two of the three criteria – i.e. It has more than 250 employees, a balance sheet of more than 40 million euros and sales of more than 20 million euros.
Sustainability reports will not be avoided even by those companies that They have their securities traded on the stock exchange, including small and medium businesses. But for them, the commitment is three years behind compared to the big companies.
Slovak companies lag behind in reporting
“According to our analysis, he currently has experience in what is called a sustainability business card About 30 Slovak companies. The most stringent reporting standards will be met by a maximum of one-third,” says Jana Rocica, expert in non-financial data reporting at Mazars.
According to her, the directive that applied this applies so far The obligation imposed on companies with more than 500 employees with a certain turnover rate and a certain balance sheet. Most companies, in accordance with applicable legislation, have used the exemption provided for in the Regulations, and as subsidiaries of foreign companies, Inclusion of information in the parent company’s consolidated non-financial statement.
as set out below, The new directive will be more binding Member states will not have this flexibility in the process of converting it into national law.
Sustainability information is also interesting for investors
The European Commission argues that the financial sector needs transparent, reliable and comparable information on how companies affect the environment and society. Investors are increasingly guided not only by indicators of the financial condition of companies, but also by information about the impact of their activities on climate change or their approach to employees. The aim of the directive is to support the flow of capital to sustainable activities, which require accurate and standardized data so that companies do not slip into the so-called greenwashing.
Auditors will highlight sustainability
In order to achieve the greatest possible transparency, there will be corporate governance Must verify independent review. In addition, it will be accompanied by financial indicators Published in digital form as well as in the European database.
The exact criteria companies will use in their reporting will be known within a year. It is prepared by the European Financial Reporting Advisory GroupIt will be based on current and used standards.
The union will become a global unit
Currently preparing a Europe-wide sustainability report The union publishes about 11,000 companies. After the new number It will rise to nearly 50 thousand. Thanks to that, the European Union will become A global leader in setting standards for sustainable finance.
It is likely that large companies should demonstrate sustainability Already in the annual report for 2023. Companies do it They have a year and a halfto have fun Set up data collections from January 2023 and elevate their activities to a level they can communicate openly with.
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