Clifford Chance

The corporate sustainability reporting directive became part of the government's budget consolidation package

13 October 2023

As a surprise to everyone concerned, the current Budget Consolidation Package, to become effective for the most part as of January 2024, includes a partial implementation of the Corporate Sustainability Reporting Directive (CSRD).

CSRD requires companies to report on the impact of corporate activities on the environment and society, and requires the audit of such reported information. The Budget Consolidation Package (and the subsequent amendment 3149 by MP Havranek) proposal addresses the first phase of the CSRD obligations, i.e. to publish the sustainability report.

The good news is that the content of the sustainability report is largely consistent with the current obligation to provide an "overview of non-financial information" in the management report under the Czech Accounting Act, with the proposed changes attempting to eliminate any deviations from the CSRD that the current legislation contains.

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