The newly adopted Corporate Sustainability Reporting Directive (CSRD) obliges companies to be more accountable to society in a continuous effort to strengthen the EU's social market economy and lay the foundations for global standards for sustainability reporting. According to experts, the CSRD effectively addresses most of the shortcomings in the existing legal framework regarding the disclosure of non-financial information, which has been criticized as insufficient and unreliable. The CSRD introduces more detailed reporting requirements for companies’ impact on the environment, human rights and social standards, based on common priorities and criteria that are fully aligned with the EU's climate goals. The first set of standards will be adopted by the European Commission by June 2023. In addition, companies will be subject to independent auditing and certification to ensure the reliability of the information provided. There are also benefits for EU investors, who will now have comparable and reliable data, with digital access to information also guaranteed.

The Council is expected to adopt the proposal on 28 November, after which it will be signed and published in the EU Official Journal. The directive will enter into force 20 days after publication, and the rules will start applying between 2024 and 2028.