The Eurocadres blog
Compulsory ESG reporting for companies
A step forward to a just transition.
On October 18th, the delegated act of the Corporate Sustainability Reporting Directive (CSRD) was finally adopted by the European Parliament, after a tentative, last minute attempt to deprive the directive of its substance. The new reporting requirements are a great step forward, as they place a binding onus on companies to introduce mandatory and comparable tools in corporate social responsibility reporting.
The CSRD is a text that will be leveraged as a major tool within the array of measures under the European Green Deal. The obligations will be introduced gradually, beginning in 2025, with the first set of companies, namely those already subject to the non-financial reporting directive (which is replaced by the CSRD), set to deliver their data. In one of many wins for workers, the new text gives an explicit right to trade unions to have a say in the environmental, social and governance data (ESG) being compiled.
While we rightly celebrate the success in securing this text, we now move to the transposition process, where it is important that trade unions insist of their right to be part of the process of analysis. This analysis is a core part of the directive as it defines which data is important or not. Moreover, the directive provides an explicit right to social partners to have their say on the provisional ESG data. The reporting requirements are most of the time on the group level, not to be confounded with the data provided for negotiations on the enterprise level. It gives trade unions an opportunity to have their say on the just transition.
For more information, please see more from IR notes here:
Vice-President of Eurocadres