Ireland: CSRD regulations published, but wording is ambiguous?

The EU’s Corporate Sustainability Reporting Directive was transposed into Irish law on July 6, requiring companies to report publicly on environmental, human rights, and labour issues. The wording of some parts are ambiguous in our view. 

Why it matters: This law impacts around 50,000 companies in Europe and 600 in Ireland, ensuring greater transparency and accountability across various sectors.

The big picture: The law will be implemented in stages, starting from January 2024 for public interest entities and extending to 2028 for large subsidiaries of non-EU companies with significant EU turnover.

• January 2024: Public interest entities (500+ employees) 

• January 2025: Larger companies (250+ employees) 

• January 2026: Listed SMEs with an opt-out until 2028 

• January 2028: Large subsidiaries of non-EU companies

Details: Non-EU companies with financial securities listed on an EU market may be affected sooner. Ambiguities in the regulations require companies to seek guidance on compliance.

Concerns: The wording around companies in scope and on reporting obligations is not straightforward and every undertaking must look at its own situations and take appropriate advice. Similarly, the wording on how employees’ representatives are to be designated is ambiguous. We explore these concerns in a separate paper.

ADDITIONAL INFORMATION:

Ireland’s CSRD Regulations

• We have scheduled a discussion on CSRD for our September meeting 
• The role of EWCs in CSRD will be explored at our Sitges October training program