Corporate Sustainability Reporting Directive signed into law
The Government recently signed the Corporate Sustainability Reporting Directive (CSRD) into Irish law.
The CSRD requires companies to report on the impact of corporate activities on the environment and society and requires the audit of reported information.
However, the CSRD only applies directly to companies that meet two or three criteria below:
- 250+ employees
- €50m+ turnover
- €25m+ total assets
Coupled with this development is the Corporate Sustainability Due Diligence Directive (CS3D) which was formally adopted by the Council of the EU on 24 May and was published in the Official Journal of the European Union on 5 July. It entered into force on 25 July and apply to the first set of companies in 2027. The deadline for national transposition is 25 July 2026.
The CS3D applies directly to companies that in the last financial year had:
- 1000+ employees
- €450m+ turnover
However, it is worth noting both pieces of legislation are relevant for all businesses that are in the supply chain of companies that are in scope as:
- In the case of the CSRD, they will have to provide sustainability information to companies in scope to support their compliance
- In the case of the CS3D, they will have to provide information on their behaviour in international trade with regard for potential or actual adverse impacts on human rights or the environment in support of the companies that are in scope
What does it mean for small firms?
For the CSRD, there is a voluntary “standard” (guidance) for SMEs to help them provide sustainability information to their trading partners that are in scope. See details here.
For questions on this topic, please contact SFA Public Affairs Lead, Jonathan McDade - Tel: 01 605 1688 or Email: jonathan.mcdade@sfa.ie.
