Ireland and other member states have until mid-2024 to transpose the CSRD, with a view to mandatory requirements commencing for financial years on or after:
- 1 January 2024 for public interest entities in scope of EU non-financial reporting rules (greater than 500 employees)
- 1 January 2025 for other larger companies and public interest entities (greater than 250 employees)
- 1 January 2026 for listed SMEs, with an ‘opt out’ possible until 2028.
Companies in scope will be required to report on a double materiality basis. This means that companies will have to disclose not only the risks they face from a changing climate and other ESG matters (financial materiality), but also the impacts they themselves may have on climate and society (impact materiality). Companies will also have to provide information on their value chain.
CSRD introduces mandatory reporting standards developed by the European Financial Reporting Advisory group (EFRAG). There are twelve draft standards in total and details of the standards can be found
here. The European Commission has published a
draft delegated Act and is seeking further feedback before the final adoption of the standards.
The website of the Department of Enterprise, Trade and Employment has published relevant information supports for business which can be found
here.