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Corporate sustainability reporting rules integrated in Ireland with the accounting and audit framework
| The European Union (Corporate Sustainability Reporting) Regulations 2024 entered into force on 6 July 2024, giving effect to Directive (EU) 2022/2464 as regards corporate sustainability reporting. These Regulations mandate that all large companies and listed companies, excluding listed micro-enterprises, include sustainability information in their directors’ reports following the European Sustainability Reporting Standards. This information must be reviewed by an auditor and given a limited assurance opinion, with the reports submitted digitally. The implementation of these new requirements will be phased in over the financial years from 2024 to 2028. The Companies Act 2014 is amended accordingly. The European Union (Corporate Sustainability Reporting) Regulations 2024 mandate that all large companies and listed companies, with the exclusion of listed micro-enterprises, must disclose information on sustainability topics, which encompass environmental, social, and governance (ESG) issues, including human rights. This information must be included in the directors’ report and adhere to the European Sustainability Reporting Standards. These Regulations modify the Companies Act 2014 by establishing guidelines for sustainability assurance standards and oversight. This includes the approval and registration of statutory auditors and audit firms to ensure the accuracy of sustainability reporting, as well as specifying the responsibilities of audit committees. The sustainability reporting is gradually applicable across the years 2024 to 2028 commencing for financial years on or after: 1 January 2024 for public interest entities; greater than 500 employees 1 January 2025 for other larger companies; greater than 250 employees 1 January 2026 for listed SMEs, with an ‘opt out’ possible until 2028 1 January 2028 for large subsidiaries and branches of non-EU companies with a net turnover of €150 million in the EU. The European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024 provides further information on the qualification of a company as micro-company. Note: The European Union (Corporate Sustainability Reporting) Regulations 2024 will appear within a consolidated version of the Companies Act 2014 in your register. |