In order to meet the European Green Plan climate and energy goals of the European Union, it is crucial to direct investments into sustainable projects and activities.

On December 14, 2022, the European Union adopted the Corporate Sustainability Reporting Directive (CSRD).

Sustainable development has been at the center of European politics for a long time, and the European Union has not left out this expected segment of business. Today, companies are increasingly trying to join forces with each other in order to create and adapt new ideas, turning towards sustainable business.

Navigating the environmental, social and governance (ESG) landscape is a complex challenge for mid-market companies. Their approach to it will depend on the company size, business type, and stakeholder priorities. There are growing expectations from different stakeholders for companies to integrate ESG into their corporate operations, alongside the regulatory developments that make certain sustainability reports, such as a report on supply chain greenhouse gas (GHG) emissions, mandatory for all companies. This means that companies need a strong ESG position and transparent reporting.

Starting in 2024, the Corporate Sustainability Reporting (CSRD) Directive will require all large companies to report on sustainability policy and performance. In April 2021, the European Commission presented a proposal for a Directive requiring mandatory reporting on the environmental and social impacts of business activities, as well as an independent guarantee on the non-financial information presented.

Mandatory exemplary NFRD regulations, i.e. the publication of sustainability indicators, are planned for the beginning of 2023. Climate change is here and is greatly affecting the lives of all mankind and until recently we can say that this topic was reserved exclusively for certain individuals and scientists who have been planning to respond to this crisis.