On 16 December 2022 the Official Journal of the European Union (OJ) published Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting (“CSRD”).

CSRD requires all large undertakings and exchange-listed small and medium undertakings to ensure that their management reports include information necessary to provide an understanding of their impacts on sustainability matters and of how sustainability matters affect their development, performance and position.

Such reporting must comply with the common European sustainability reporting standards (ESRS), with the first ESRS set to be adopted by the European Commission until 30 June 2023. Simplified ESRS will be developed for exchange-listed small and and medium undertakings.

CSRD provides for a three-stage process for introducing the new requirements:

  • with respect to financial year 2024 (reporting in 2025), the new reporting framework will apply to largest entities, which currently provide non-financial reporting under the Accounting Act; these are large public-interest (exchange-listed) entities with average headcount of more than 500 employees;
  • with respect to financial year 2025 (reporting in 2026), the new reporting framework will apply also to all exchange-listed large undertakings;
  • with respect to financial year 2026 (reporting in 2027), the new reports will have to be submitted also by exchange-listed medium and small undertakings.

CSRD will now have to implemented in Polish law. As the other Member States, Poland should do so by 6 July 2024. We will keep you updated on the progress of the legislative process.

If this issue pertains to your business and you are interested in our assistance, please contact us.

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