The EP adopted new reporting rules for multinational companies

By: STA Date: 2022. 11. 10. 11:23

At the plenary session in Brussels, the European Parliament adopted new reporting rules for multinational companies in order to make environmental, social and management issues transparent, the EU Parliament informed on Thursday.

(Photo: Pixabay)

Adopted by 525 votes in favor, 60 against and 28 abstentions, the Sustainability Reporting Directive obliges companies to regularly publish information on the social and environmental impacts of their activities. The regulation introduces more detailed reporting requirements in environmental, social, gender, human rights and democracy-related matters, among others. They said the new rules address gaps in existing legislation on the disclosure of non-financial information, aim to stop companies pretending to be more environmentally friendly than they really are, strengthen the EU’s social market economy and set global standards for sustainability reporting. its foundations.

To ensure that companies provide reliable information, they must undergo regular and independent audits

The requirements will apply to all large companies, whether listed or not. Non-EU companies with significant activities in the EU and a turnover exceeding EUR 150 million must also meet the requirements. The scope of the decree will also cover the listed SMEs, but they will have more time to adapt to the new rules, they wrote. The collection and sharing of sustainability-related information will apply to nearly 50,000 companies operating in the EU, compared to around 11,700 companies covered by the current rules, they added.


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