European Union (Corporate Sustainability Reporting) Regulations 2024

Overview

The European Union (Corporate Sustainability Reporting) Regulations 2024 is an Irish Regulation transposing the EU’s Corporate Sustainability Reporting Directive (EU) 2022/2464 into Irish law. The regulation aims to increase transparency in corporate practices with regards to sustainability matters, aligning with EU climate objectives. It requires businesses to provide information on environmental, social and governance (ESG) matters within their Directors' Reports. They must also include human rights matters in line with European Sustainability Reporting Standards (ESRS).

The Regulation makes amendments to the Companies Act 2014 and implements a new ‘Part 28’ for the purposes of sustainability reporting. It expands the Transparency Regulations 2007 to include sustainability information. Additionally, it establishes a framework to verify and register Auditors for the purposes of assuring sustainability reports.

The regulations require all large companies and all listed companies (except listed micro-enterprises) to provide information relating to ESG in their Directors’ report.

The scope and implementation timeline:

• 1 January 2024: Regulations are applicable to public interest entities within the scope of EU non-financial reporting rules, specifically those with over 500 employees. 
• 1 January 2025: Applicability extends to other large companies and public interest entities which meet at least two of the following criteria: have a balance sheet greater than €25 million; a turnover greater than €50 million; or over 250 employees.
• 1 January 2026: applicable to listed SMEs, with an ‘opt out’ possible until 2028.