The European Commission has taken action against 17 EU member states for failing to implement the updated Corporate Sustainability Reporting Directive (CSRD) into national law. This directive, an overhaul of the previous Non-Financial Reporting Directive (NFRD), significantly expands the number of companies required to disclose their sustainability practices, increasing the scope from 12,000 to over 50,000 companies.
View of green hills and dense forest in Europe. AI generated picture.
The CSRD, which took effect in 2024 for large companies with over 500 employees, requires detailed disclosures on environmental impacts, human rights, and social standards. The directive aims to enhance transparency and accountability in corporate sustainability, with smaller companies due to follow in subsequent years. The deadline for member states to transpose the CSRD into their laws was 6 July 2024, but countries including Belgium, Germany, Spain, and Poland are among those yet to comply fully.
Read more: Aligning with CSRD: the smart move for future-proofing your business
In its announcement, the Commission warned that without the full implementation of the CSRD, harmonised sustainability reporting across the EU would not be possible, complicating investment decisions based on companies’ environmental and social performance. The member states have two months to respond and complete the transposition, or they may face further legal action, including potential penalties from the Court of Justice.
Read more: What is CSRD and how does it affect your business?
In a related move, the Commission has also launched infringement procedures against 26 member states for failing to meet deadlines under the Renewable Energy Directive, which aims to boost renewable energy to 42.5% of the EU’s total consumption by 2030. Only Denmark has fully met the July 2024 deadline for implementing the directive, while the rest of the bloc lags behind.
Partnering with DGB Group ensures that your business is well-equipped to meet the challenges of sustainability compliance under frameworks like the CSRD. With expert support in carbon footprint analysis, carbon reduction, and compensation strategies, DGB helps businesses not only meet regulatory requirements but also achieve meaningful sustainability milestones.
By starting your sustainability journey today, you can position your business for long-term success. Begin by measuring your environmental impact and developing a strategy that reduces and compensates for emissions. Reach out to DGB to assess your carbon footprint and receive tailored guidance from our experienced team, helping you lead the way in environmental responsibility.
Begin your sustainable journey with DGB
