What You Need to Know About the New Corporate Sustainability Reporting Regulations (2024)

Sustainability is no longer just a buzzword—it’s a legal requirement for many businesses across Europe. The Corporate Sustainability Reporting Regulations 2024 bring significant changes to how companies report on their environmental and social impact. Whether you’re running a growing SME or managing a large company, it’s essential to understand how these changes may affect your business.

What Are the Corporate Sustainability Reporting Regulations?

These regulations implement the Corporate Sustainability Reporting Directive (EU) 2022/2464, which forms part of the European Green Deal—a strategy aimed at making the EU climate-neutral by 2050.

The goal? To improve transparency and ensure companies report clearly on how they are tackling environmental, social, and governance (ESG) issues. This means more structured, consistent disclosures on everything from emissions to labour practices and board diversity.

Who Needs to Report—and When?

The reporting requirements will apply in phases depending on the size and type of your business:

• From 1 January 2024: Large public interest entities already subject to the EU’s non-financial reporting rules (typically with over 500 employees).
• From 1 January 2025: Other large companies meeting** two out of three** of the following: Balance sheet total over €25 million Net turnover over €50 million More than 250 employees
• From 1 January 2026: Listed SMEs (Small and Medium-sized Enterprises), with the option to opt out until 2028.

If you’re not sure whether your company is in scope, now is the time to review your financials and company structure.

Double Materiality: What It Means

A key concept under the new rules is double materiality. This requires companies to look both ways:

1. Financial Materiality: How do sustainability risks (like climate change or supply chain issues) affect your business?
2. Impact Materiality: What impact does your business have on the environment and society? In other words, it’s not just about protecting your bottom line—regulators want to know how your operations affect people and the planet.

Reporting on Your Value Chain

Companies must also disclose sustainability data across their entire value chain—not just what’s happening internally. If this information isn’t yet available, there is a grace period: for the first three years, companies can explain the gaps in their reporting.

What You Need to Report

Your reports must align with the European Sustainability Reporting Standards (ESRS). These standards, developed by EFRAG and adopted by the European Commission, cover:

• 2 cross-cutting standards
• 5 environmental standards
• 4 social standards
• 1 governance standard EFRAG has also developed practical guidance and a Q&A platform to help businesses get started.

Where to Get Help

If you have any questions or are concerned you will fall within the scope, please contact us to discuss your business and your options going forward.

The National Enterprise Hub and Sustainable Business portals also offer resources and guidance for companies of all sizes.

Need help understanding what these regulations mean for your business?

We’re here to guide you through the reporting process and help you stay compliant.

📩 Contact us today for support or to arrange a consultation.