EU Countries Falling Short on CSRD Compliance

With the deadline of July 6th 2024 having come and gone for states to transpose the CSRD into national laws, the EU Commission today issued letters to 17 member states announcing the launch of the infringement procedures. 

The states receiving the letters include Belgium, Czech, Germany, Estonia, Greece, Spain, Cyprus, Latvia, Luxembourg, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia and Finland.

So why are countries taking so long? There is no doubt that CSRD is the most comprehensive and far reaching Sustainability Disclosure requirements to date. But it is also welcomed by most because of the ability to harmonise and drive progress in ESG matters. 

We already saw EFRAG publish a report on some of the first CSRD reports by companies, and although some gaps in the reporting completeness, it showed progress in many other areas. Supply Chain mapping and risk mapping had some way to go to cover the full value chain. But scope emissions 1 and 2 well reported. 

So why delay this inevitable enhancement on ESG reporting? We have heard different views on what sanctions should be imposed for non-compliance, extending the scope of entities at local level, and whether or not to expand the type of auditor for the report. However should it really differ that much country to country is the question? 

Meanwhile companies, especially small to medium-sized ones, are having to plough ahead and get ready, as this is coming and fast. 

For more information on CSRD, ESG and sustainability please visit:

Corporate Sustainability Reporting Directive (CSRD) Auditing Services (intertek.com)

ESG Assurance (intertek.com)

Total Sustainability Assurance (intertek.com)