EC begins action against 17 member states for failing to transpose CSRD
Seventeen member states in Europe have failed to notify the European Commission that they have fully transposed the bloc’s new sustainability reporting requirements under the Corporate Sustainability Reporting Directive (CSRD).
The EC has opened infringement proceedings against Belgium, the Czech Republic, Germany, Estonia, Greece, Spain, Cyprus, Latvia, Luxembourg, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia and Finland.
In a letter of formal notice, the member states were told they should have transposed the directive, and notified the EC, by July 2024. The member states now have two months to respond and complete the transposition of the CSRD or the EC will move to the next level of infringement proceedings.
The CSRD applies to large companies and listed firms from financial years beginning 1 January 2024, requiring organisations to disclose social and environmental risks.
The EC said: “In the absence of transposition of these new rules, it will not be possible to achieve the necessary level of harmonisation of sustainability reporting in the EU, and investors will not be in a position to take into account the sustainability performance of companies when making investment decisions.”