The phasing-in, deadlines, etc. are affected by the EU Commission's omnibus proposal.
Companies in Denmark will be covered after a gradual phasing-in:
The requirements are comprehensive and include, among other things, the strategic work on sustainability and a detailed assessment of the company's impact on the outside world and the impact of the outside world on the company through a dual materiality analysis.
This is followed by the comprehensive reporting requirements as stipulated in the ESRS (European Sustainability Reporting Standards). Sustainability reporting must be included as part of the annual report and is also subject to the requirement for a limited assurance auditor's statement.
There is therefore a major task ahead in terms of determining data requirements and subsequently establishing internal systems and processors that ensure the provision of data and its quality - in the same way as with all other financial data.
Your business may be indirectly affected by CSRD requirements if you are a supplier to larger companies that are covered. Companies that do business with larger companies may be required to measure and document their impact on the environment and climate, as well as social and governance (ESG) issues.
The ability to meet increasing demands for ESG data from customers and partners will therefore be crucial for competitiveness going forward.
The legislative amendment is crucial to further boost companies' green transition, and the final adopted bill can be found in its entirety here:
The EU directive on sustainability reporting means that a number of Danish companies must comply with extensive reporting requirements.
It is often obvious that the CFO area takes ownership when the data part of the ESG work is to be anchored. They are experts in the use of data, including the need for structure, security and quality. However, it is important to establish that the entire organization must be involved.
The focus areas are absolutely central to ensuring the completeness, accuracy and timeliness of data and thus supporting ESG reporting:
