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Environment
Applicable since 1 January 2024, what is the CSRD?
Publié le 05 janvier 2024 - Mise à jour le 27 septembre 2024 - Directorate for Legal and Administrative Information (Prime Minister)
Applicable since 1er January 2024, the European Corporate Sustainability Reporting Directive (CSRD) sets new standards and extra-financial reporting requirements. It concerns large companies and listed SMEs.
The objectives of the CSRD
The aim of this directive is to promote the sustainable development of companies and to identify those which are disciplined in this area. The information gathered will enable a better assessment of the impact of the company and its activity on the environment.
It follows on from the 2014 Non-Financial Reporting Directive and aims to harmonize the non-financial reporting of European companies.
What information should be provided?
Extra-financial reporting is about data ESG (Environmental, Social and Governance) company. These are:
- environmental factors: climate change mitigation and adaptation, biodiversity, resource use...;
- social factors: equal opportunities, working conditions and respect for human rights and fundamental freedoms...;
- governance factors: role of administrative bodies, lobbying activities, management of relations with trading partners...
The information provided by the company must be certified by an auditor or by an accredited independent third-party body.
Please note
The indicators mentioned in the CSRD will soon be included in the CSR Portal.
Progressive application
The application of the European CSRD Directive is carried out in three stages according to the companies concerned:
Entry into force of the CSRD | First reporting | Companies concerned |
|---|---|---|
1er january 2024 | 2025 (for 2024) | Companies already subject to the non-financial disclosure directive in force since 2018. Companies that meet two of the following criteria: more than 500 employees, more than €50 million in turnover, more than €25 million in balance sheet total |
1er january 2025 | 2026 (for 2025) | Companies meeting two of the following criteria: more than 250 employees, more than €50 million in turnover, more than €25 million in balance sheet total |
1er january 2026 | 2027 (for 2026) | Listed SMEs (except micro-companies: companies with less than 10 employees whose balance sheet total does not exceed €450 000 or whose net turnover does not exceed €900 000) |
Communication of the management report
A management report must be drawn up by the commercial businesses (SA: titleContent, SARL: titleContent, LOCK: titleContent, SCA: titleContent and CNS: titleContent). Its aim is to provide a detailed picture of the business situation over the past year.
This report shall include the following information:
- the business’s situation during the previous year: includes an ‘objective and comprehensive’ analysis of the development of the business, its performance and its situation, including its debt position, in the light of the volume and complexity of the business;
- the ‘foreseeable development’ of the business situation;
- material events which occurred between the end of the financial year and the date on which the report is drawn up;
- the business' research and development activities;
- existing branches;
- key performance indicators of a financial nature and, where appropriate, of a non-financial nature in relation to its specific activity (information on environmental and personnel matters);
- the main risks and uncertainties facing the business;
- if relevant for the purpose of assessing the assets, liabilities, financial position and profit or loss of the business, indications of the business' objectives and policy regarding the hedging of each main category of expected transactions for which hedge accounting is used, as well as its exposure to price, credit, liquidity and cash risks (financial instruments are required for such indications);
- if the business is a large company (meets at least 2 of 3 criteria: balance sheet over €25 million, net turnover over €50 million and has over 250 employees), information about its core intangible assets, how its business model is fundamentally dependent on these assets and how they are a source of value creation.
Please note
These provisions, which will come into force on 1er January 2025, increases the amount of information to be reported in the management report for SARLs, SASs and SNCs.