On December 14, 2022, the European Union adopted the Corporate Sustainability Reporting Directive (CSRD).

The European Parliament called for the extension of the scope of the Non-Financial Reporting Directive in its resolution on sustainable finance from May 2018 and for the further development of reporting requirements. The main users of the sustainability information published in the companies' annual reports are investors and non-governmental organizations, social partners and other stakeholders.

Investors want to better understand the investment risks and opportunities arising from sustainability issues, as well as the impact of those investments on people and the environment. Non-governmental organizations, social partners and other stakeholders want companies to take greater responsibility for the impact of their operations on people and environment. Users of information want to be better informed about sustainability issues because unfavorable indicators can harm the company's financial results. A request was made for the current non-financial reporting to become sustainability reporting.

Full name of the directive:

Directive on corporate sustainability reporting – Directive (EU) 2022/2464 of the European Parliament and the Council of December 14, 2022 amending Regulation (EU) no. 537/2014 (Revision Regulation) of Directive 2004/109/EC (Transparency Directive), Directive 2006/43/EC (Revision Directive) and Directive 2013/34/EU regarding corporate sustainability reporting.