CSRD Update
The Department Enterprise, Trade & Employment has published new information on Part 28 of the Companies Act 2014, inserted by the European Union (Corporate Sustainability Reporting) Regulations 2024, as amended, in the form of answers to Frequently Asked Questions (FAQs) received since the publication of new legislation, which can be found here.
The Corporate Sustainability Reporting Regulations 2024 transpose the Corporate Sustainability Reporting Directive (EU) 2022/2464 which arises from the European Green Deal’s climate change action objectives, to further enhance the disclosure by companies on climate and environmental data.
The regulations came into effect on 6 July 2024 and commence for financial years on or after:
- 1 January 2024 for public interest entities in scope of EU non-financial reporting rules (greater than 500 employees)
- 1 January 2025 for other large companies (at least 2 of balance sheet greater than €25 million, turnover greater than €50 million and employees greater than 250)
- 1 January 2026 for listed SMEs, with an ‘opt out’ possible until 2028
Companies in scope will be required to report on a double materiality basis. This means that companies will have to disclose not only the risks they face from a changing climate and other ESG matters (financial materiality), but also the impacts they themselves may have on climate and society (impact materiality). Companies will also have to provide information on their value chain. To assist companies with the transition to the new requirements, for the first three years of reporting, where information on the value chain is not available, they may elect to explain their inability to obtain the information.
Government sustainability supports
All businesses are encouraged to avail of government sustainability supports. For further information see the National Enterprise Hub and Sustainable Business.
For questions on this topic, please contact SFA Public Affairs Lead, Jonathan McDade - Tel: 01 605 1688 or Email: jonathan.mcdade@sfa.ie.
