Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amends several regulations and directives concerning corporate sustainability reporting. This significant update extends sustainability and transparency requirements that corporations within the European Union must comply with.

‍

Key changes and their significance:

Expanded scope. The directive extends reporting obligations to a larger number of companies, including small and medium-sized enterprises, making sustainability requirements more comprehensive.

Increased transparency. Enhances reporting requirements to ensure greater transparency in corporate activities, particularly in terms of sustainability and environmental impact.

Support for sustainable development. Promotes the integration of sustainable development principles into corporate strategy and activities, supporting the EU's sustainable development goals.

Companies will need to review and possibly modify their reporting systems to meet the new requirements, making changes to corporate policies and procedures to comply with the updated reporting rules.

‍

This step directly supports the EU's broader efforts towards sustainable development by requiring companies to be more open about their environmental and societal impacts.