Sustainability Report

Importance of the sustainability report

• Today, companies are increasingly called upon to account for the non-financial aspects of their activities by drawing up documents such as a sustainability report;
• Not all companies are legally obliged to draw up a sustainability report, although the latest European directives have extended the scope of the obligation;
• Many companies that are not legally obliged to do so voluntarily choose to produce a sustainability report because of the many benefits it brings.

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The sustainability report allows companies to monitor the links between their financial and non-financial performance, improve their reputation and mitigate their environmental impact. On the other hand, disclosing information about the social, environmental and governance (ESG) performance of companies makes it possible to channel private investment towards the ecological and social transition.
In November 2022, the European Council gave its final approval to the Corporate Sustainability Reporting Directive (CSRD) that was proposed in April 2021 as part of the European Green Deal and the Agenda for Sustainable Finance. With this new step, the rules on non-financial reporting contained in the 2014 Accounting Directive have been strengthened.
The Corporate Sustainability Reporting Directive sets out how to draw up a sustainability report and regulates the reporting of ESG aspects. The latter directive is more stringent than the previous regulation and applies to all large companies, as well as to a list of small and medium-sized companies taking their specificities into account.