Within the Ministry of Economy, a proposal for amendments and additions to the Companies Act (ZGD-1M) is being prepared, which will, among other things, transpose Directive 2022/2464/EU on sustainability reporting (CSRD) into our legislation.
According to the current proposal, the sustainability report will be included in the business report as a separate section, disclosing information that companies must disclose in accordance with Article 8 of Regulation 2020/852/EU. The extent of disclosures will vary depending on the size of the companies, and specific requirements will also apply to the consolidated sustainability report and sustainability reports for dependent companies controlled by a company from a third country, as well as for branches of foreign companies.
Regarding the proposed timeline:
• Public interest entities with an average number of employees exceeding 500 in the financial year or serving as the parent company of a large group with an average number of employees exceeding 500 will first include sustainability information in their business reports for the financial year beginning on January 1, 2024, or later.
• Other large companies will first report for the financial year beginning on January 1, 2025, or later, and the same applies to parent companies of large groups.
• Small and medium-sized companies listed on the stock exchange, except micro-companies, will first report for the financial year beginning on January 1, 2026, or later. The same applies to insurance companies.
• Other companies are exempt from reporting.