Sustainability reporting requirements pose challenges for SMEs

The trilogue negotiations on the CSRD are expected to be completed by the end of May. Many companies may then have to prepare a sustainability report for the first time next year. The Corporate Sustainability Reporting Directive (CSRD) will significantly change the reporting requirements. The new standards are embedded in the EU’s sustainable finance strategy and are intended to provide investors with more accurate data and thus guide financial flows. Small and medium-sized companies, in particular, are ill-prepared for this, according to industry sources.