Did You Know Your Company Might Be Violating These Sustainability Regulations? Find Out Before It’s Too Late!

In today’s business world, sustainability is not just a trend but a legal obligation. European regulations have established a rigorous framework to ensure that companies comply with sustainability standards. Below is a summary of the key regulations you need to be aware of:

1. Accounting Directive (Directive 2013/34/EU):

This directive sets the rules for the presentation of financial reports, including non-financial and diversity information. It is crucial for ensuring the transparency and comparability of financial reports.

2. Audit Directive (Directive 2006/43/EC):

Regulates the statutory audit of annual and consolidated accounts, ensuring the quality and independence of audits.

3. Audit Regulation (Regulation (EU) No 537/2014):

Complements the Audit Directive, establishing specific requirements for the audits of public-interest entities.

4. Company Law Directive (Directive (EU) 2017/1132):

Harmonizes company law rules in the EU, including aspects of governance and transparency.

5. Corporate Sustainability Reporting Directive (CSRD) (Directive (EU) 2022/2464):

Requires large companies to report on sustainability matters, expanding the scope and depth of the information required.

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6. ESAP Package:

• Regulation (EU) 2023/2859 (ESAP): Establishes a European Single Access Point (ESAP) to centralize information relevant to financial services, capital markets, and sustainability.
• Regulation (EU) 2023/2869 (ESAP Omnibus): Amends certain regulations to facilitate the functioning of the ESAP.
• Directive (EU) 2023/2864: Amends certain directives for the establishment and functioning of the ESAP.

7. ESEF Delegated Regulation (Commission Delegated Regulation 2019/815):

Establishes the European Single Electronic Format (ESEF) for the presentation of financial reports.

8. European Sustainability Reporting Standards (ESRS):

• ESRS for listed SMEs: Specific standards for listed SMEs, excluding micro-undertakings, for the preparation of their sustainability statements.
• ESRS for third-country undertakings: Standards for third-country undertakings subject to the Accounting Directive.
• General ESRS: Standards for all undertakings within the scope of Articles 19a and 29a of the Accounting Directive.

9. Sustainable Finance Disclosures Regulation (SFDR) (Regulation (EU) 2019/2088):

Requires financial market participants to disclose sustainability information.

10. Taxonomy Regulation (Regulation (EU) 2020/852):

Establishes a framework to facilitate sustainable investments, providing clear criteria to determine whether an economic activity is sustainable.

Don’t let your company fall behind. Ensure compliance with these regulations to avoid penalties and enhance your market reputation. Act now!

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