It isn’t enough to do it well, you also have to show this

According to the experts of KPMG, the Corporate Sustainability Reporting Directive (CSRD) of the European Union will cause the biggest problems for up-and-coming Hungarian companies. First it will be financial institutions and stock exchange companies that must prepare a report in 2025 on their sustainability achievements of 2024. In 2026 those large companies will follow for which minimum two of the following three criteria apply: they employ minimum 250 people, have a sales revenue of EUR 40m or bigger, and a balance sheet total of minimum EUR 20m. From 2027 the reporting obligation extends to SMEs too, and KPMG believes this can create difficulties for up-and-coming, Hungarian-owned companies.

Complex report

Ágnes Deme, KPMG’s manager: “It isn’t enough to do well, companies must also report on this in a reliable and transparent manner. For this firms need data, measurements, calculating the indexes defined in the CSRD, and integrating the related activities and strategic goals into the company’s operations – this won’t be easy at all.” Julianna Nagy, KPMG’s senior manager added: the time available for preparing for this reporting obligation can be enough, but this work must already start now, and it would be best for firms to start writing complex voluntary reports from 2024, so that the different problems can come to light by 2025, when the reporting becomes mandatory. //

Companies should start preparing this year, experts say

This article is available for reading in Trade magazin 2023/4.