On the 2nd of April, a pivotal legislative proposal, bill of law number 8370, was introduced in the Luxembourg Parliament to transpose the Corporate Sustainability Reporting Directive (CSRD) into national law. The CSRD will now extend the scope of application of non-financial reporting and aims to improve the quality, comparability and reliability of sustainability information disclosed by certain EU and non-EU companies who have significant activities in the EU.

Implications for National Laws

The bill of law proposes to amend several laws that regulate the accounting and reporting obligations of different types of companies, such as the law of 19 December 2002 on the trade and companies register, the law of 10 August 1915 on commercial companies, the law of 17 June 1992 on the accounts of credit institutions, and the law of 8 December 1994 on the annual and consolidated accounts of insurance and reinsurance companies. Amendments to the law of 23 July 2016 on the audit profession and the law of 11 January 2008 on the transparency requirements for issuers are also foreseen.

Gradual Implementation Strategy

The CSRD will apply to a large number of companies and groups, depending on their size and market presence. The bill of law adopts a phased approach to the CSRD's implementation, detailed as follows:

Closing Remarks and Contact Information

The Luxembourg legislator needs to implement CSRD into its national law by 6 July 2024. We will keep you informed of the developments concerning this bill of law.