ABSTRACT
Environment Social Governance (ESG) reporting addresses environmental care, social considerations, and corporate management methods. It aims to show the business model, the sustainability processes implemented with their results, and to analyse the risks associated with business relationships, products, or services that may have an adverse impact on the sustainability of the company. On December 14, 2022, the European Commission adopted the Corporate Sustainability Reporting Directive (CSRD Directive) 2022/2464/EU. This directive will replace the current Non-Financial Reporting Directive (NFRD Directive) 2014/95/EU.
The aim of the chapter is to analyse the changes in ESG reporting and to assess their impact on the information system and reporting of business entities.
The study presents the reasons for the changes in the presentation of sustainability information, analyses the existing legal regulations, in particular regarding the subject and object scope of sustainability-related reports prepared as non-financial reports under the regulations of Directive 2014/95/EU, and as ESG reports under the regulations of Directive 2022/2464/EU. An analysis was also made of the ESG reporting standards promulgated by the European Commission on July 31, 2023.
