The European directive on corporate sustainability reporting (CSRD), adopted in 2022, came into effect on January 1, 2024.
European member states have until July 6, 2024, to transpose this directive into national legislation.
The CSRD marks a significant step forward in promoting non-financial reporting in Europe. Its aim is to improve the transparency and comparability of sustainability information published by companies. This enables investors, stakeholders, and the broader public to better assess companies’ performance in terms of environmental, social, and governance (ESG) criteria.
Belgium began the process of transposing this directive in late 2023. This process is led by the Federal Public Service Economy, in collaboration with the Federal Public Services of Foreign Affairs and Justice. By the end of December, a draft of the law was submitted for consultation with stakeholders.
The process of transposing the CSRD into Belgian legislation is currently underway. Before the bill is submitted to the federal parliament, inter-cabinet consultations will take place on the draft. Advisory bodies, such as the Central Economic Council (CRB), have also been consulted on the text. After approval by the Council of Ministers, the bill will be submitted for review by the Council of State, after which parliamentary discussions can begin, with the Economic Committee responsible for the dossier.
The transposition of the CSRD into Belgian law is an important process with significant implications for companies, investors, and stakeholders. It is essential for companies to begin preparing for the transposition now so that they can meet the new requirements within the specified timeframe.