The European Union (EU) is at the forefront of implementing robust sustainability reporting requirements to combat climate change and promote responsible business practices. As part of its ambitious European Green New Deal, the EU has introduced various laws and regulations to drive corporate and investor sustainability. This guide aims to provide an overview of the key EU sustainability reporting requirements and their implications for organisations in 2023 and beyond.

Here’s what you need to know:

Major EU Sustainability Reporting Laws and Regulations in 2023:

  • Sustainable Finance Disclosure Regulation (SFDR): Regulating sustainability reporting for EU asset managers and investment advisers.
  • Corporate Sustainability Reporting Directive (CSRD): Mandating corporate sustainability reporting for companies in the EU.
  • EU Taxonomy for Sustainable Activities: Establishing a common classification system for sustainable economic activities.
  • German Supply Chain Due Diligence Law (LkSG) and Corporate Sustainability Due Diligence Directive (CSDDD): Regulating corporate supply chain due diligence and reporting.

Other EU Sustainability Laws and Regulations to Track in 2023:

  • EU ecodesign for sustainable products
  • EU green claims initiative
  • EU regulation on deforestation-free products
  • Proposal for a revision of EU legislation on packaging and packaging waste
  • The EU “Women on Boards” Directive

SFDR: The EU’s Sustainable Finance Disclosure Regulation:

  • Disclosure requirements for EU asset managers and investment advisers.
  • Categories of financial products and their corresponding reporting obligations.
  • Reporting on sustainability risks, adverse impacts, and sustainable investment strategies.
  • Pre-contractual and periodic disclosure obligations.

CSRD: The EU’s Corporate Sustainability Reporting Directive:

  • Obligations for companies regarding tracking and reporting ESG activities.
  • Criteria for companies covered under the CSRD.
  • Reporting requirements and disclosure topics.
  • Digital data and third-party assurance.

EU Taxonomy for Sustainable Activities:

  • The role of the EU Taxonomy in aligning sustainable investments.
  • Reporting obligations based on EU Taxonomy criteria.
  • Reporting on green revenue and green expenditure.

2023 EU Supply Chain Due Diligence Laws:

  • Overview of the Corporate Sustainability Due Diligence Directive (CSDDD).
  • Scope and compliance requirements for companies.
  • Integrating sustainability and human rights due diligence.
  • Reporting obligations and enforcement mechanisms.


What does this mean for businesses?

As the EU drives its sustainability agenda, organisations must prepare for the evolving landscape of sustainability reporting requirements. Compliance with major laws such as SFDR, CSRD, and the EU Taxonomy will become crucial for companies operating within the EU. Additionally, understanding and preparing for upcoming regulations on supply chain due diligence is essential to ensure responsible and sustainable practices throughout global value chains.

The bottom line

By staying informed and implementing robust sustainability reporting systems, organisations can navigate the EU’s sustainability requirements effectively and contribute to a greener future.

Additional resources

For more detailed guidance and resources, organisations can refer to additional reading materials and explore software solutions, such as Brightest, designed to streamline and automate sustainability reporting processes.

Curious about how to kick-start your business’s sustainability transformation?