The European Parliament is working on changes in the field of CSR reporting.
The European Commission recently agreed that the reporting threshold for CSRD reporting should be 1,000 employees/EUR 450 million in turnover.
On the other hand, the threshold for the application of the CS3D Directive would be set at more than 5,000 employees/EUR 1.5 billion in turnover.
In addition, the obligation to implement measures for the climate transition would be deleted, or civil liability for breaches of due diligence obligations would be abolished.
For companies that are no longer covered by the regulations, reporting will be voluntary, in line with the European Commission’s guidelines. To prevent large companies from shifting reporting responsibilities to smaller business partners, they will not be able to request information that goes beyond voluntary standards. Sectoral reporting will also become voluntary, and existing sustainability reporting standards will be further simplified, with a focus on quantitative information and reduced administrative and financial burdens.
The European Commission also intends to create a digital portal for businesses, offering free access to templates, guidelines and information on all EU reporting requirements, complementing the European Single Access Point.
These proposals are to be negotiated on the final shape of the regulations in October.
Let us recall that CS3D assumes the introduction of a due diligence obligation for certain groups of companies in order to counteract the negative effects of conducting business activities in the field of human rights and the environment. First of all, due diligence will be introduced with regard to respect for human rights and environmental issues for certain groups of companies.
The CSRD, on the other hand, is the Corporate Sustainability Reporting Directive – an EU regulation aimed at extending the sustainability reporting obligations of companies.
