The Corporate Sustainability Reporting Directive represents one of the biggest ever shifts in reporting requirements for organizations. (For most companies, the first reporting will be on the financial year which starts after January 1, 2025.)
It requires most large organizations to comply with mandatory, detailed sustainability reporting standards, including extensive employment related disclosures. We are already advising a number of organizations in their sustainability journey and employment-related implications of the CSRD and, if it is not something you are already looking it, it will likely be on your radar very soon.
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This represents a material step change in sustainability reporting which will require significant input from employment legal and HR professionals to ensure that the vast reporting obligations are strategically and properly complied with. As employers begin to think about how they can start preparing, Baker McKenzie can assist with advising on gathering the relevant data in a legally compliant way, advising on consultation obligations with workers representatives in respect of the data collection and materiality assessment, considering the scope of disclosure obligations, drafting relevant disclosures, and any remediation work identified as a result of data gathered.
The link below shares a brief overview of the employment focus of CSRD, who it applies to, and some considerations for HR and employment legal functions. Please get in touch with one of us, or your usual Baker McKenzie contact if you have any questions or would like to set up a discussion on this topic.
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