ACCA encourages member states to transpose the CSRD without undue delay, providing certainty for companies in scope and contributing to Europe’s sustainable future
6th July marked the deadline for EU member states to implement the Corporate Sustainability Reporting Directive (CSRD) into national legislation. As is often the case, however, many countries have not met the deadline.
Companies subject to the CSRD will have to report according to European Sustainability Reporting Standards (ESRS). Specifically, this means that they will be required to report on the impact their activities have on society and the environment with an audit being conducted to provide assurance that the statements fairly present the company’s position.
Set to be introduced on a phased basis, over time based on size, the standards are applicable to large companies from 1 January 2025. They will require businesses to review their operations and strategically plan in a way that supports society and the environment and helps create a more sustainable future.
Fiona Murray, Head of EU Public Affairs, ACCA said: ‘The introduction of the ESRS is one of the most significant developments in the accounting profession in over 30 years. We would encourage any companies that have not yet reviewed their environmental footprint, to do so as a matter of urgency as it will increasingly influence the growth of their business in the years ahead.
‘While the standards will apply initially only to large companies, the requirement for all organisations to conform to the directive will be in place by 2028. They must also be ready to provide information relating to their approach and progress in managing sustainability-related risks and opportunities for their businesses.
‘With this new company law requirement in place, expectation and demand for environmental and sustainable reporting will extend beyond the organisation to its value and supply chains including suppliers, partners, regulators, investors, bankers and many other stakeholders. This means that the expectation on SMEs to provide clarity on their impact on society and the environment will also increase due to the crucial role they play in the value chain for larger companies.
‘It is important that companies of all sizes are provided with support and expertise to enable them to make informed decisions about how they can improve their environmental and sustainable footprint by developing a strategy to set targets and report on the achievement against those targets. By doing this they will help to future proof their business, creating new opportunities for growth and potentially gain a competitive advantage both nationally and internationally.’
Fiona Murray concluded: ‘Although these new requirements are challenging, evidence suggests the effort will bring environmental and social rewards. That is why ACCA would particularly encourage all SMEs to take small first steps and do what’s possible in communicating sustainability-related information with a view to becoming better businesses.’
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About ACCA
We are ACCA (the Association of Chartered Certified Accountants), a globally recognised professional accountancy body providing qualifications and advancing standards in accountancy worldwide.
Founded in 1904 to widen access to the accountancy profession, we’ve long championed inclusion and today proudly support a diverse community of over 252,500 members and 526,000 future members in 180 countries.
Our forward-looking qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to create, protect, and report the sustainable value delivered by organisations and economies.
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Guided by our purpose and values, our vision is to develop the accountancy profession the world needs. Partnering with policymakers, standard setters, the donor community, educators and other accountancy bodies, we’re strengthening and building a profession that drives a sustainable future for all.