CSRD: Does the law require employees’ representatives?

New Irish regulations under the EU’s Corporate Sustainability Reporting Directive (CSRD) took effect in July. It applies to Irish companies, their non-EU parent companies, and branches of non-EU companies in Ireland and raises key issues around employee representation

Why it matters: The CSRD will impact around 50,000 companies, requiring significant effort and engagement with stakeholders.

Details: Directors must consult with employees’ representatives about sustainability disclosures. The opinion of these representatives must be communicated to the directors.

Key questions: Could employees’ representatives at the “appropriate level” mean the EWC? Will US companies in Ireland need to establish employee representation due to the CSRD?

We are working on a paper on CSRD and employee information and consultation which we hope to have available in the next few weeks. 

ADDITIONAL INFORMATION:

Matheson LLP, have produced a useful note on the Irish legislation. It says:

Preparing for the CSRD involves considerable effort and resources and input from stakeholders from across the business (including external stakeholders, such as customers and suppliers).

On engagement with employees’ representatives the note says:

The directors of Irish companies that are in-scope for CSRD reporting are required to provide information to, and consult with, employees’ representatives at the appropriate level in relation to the sustainability information that is to be disclosed and the means of obtaining and verifying the information. The opinion of the employees’ representatives must be communicated to the directors.