EU-corporations and non-EU corporations should prepare for new sustainability reporting obligations under the European Corporate Sustainability Reporting Directive (CSRD). The United Kingdom continues to develop its own revised and updated corporate sustainability reporting regime that will apply to UK companies.

Sustainability has been at the forefront of the European Union’s legislative activities for the last few years. The United Kingdom has begun passing its own economy-wide sustainability regulations that are distinct from EU laws. With respect to corporates, the EU and UK have opted for extensive reporting obligations to meet stakeholder demands for more sustainability transparency and accountability. The EU and UK laws both no longer focus only on listed companies or public-interest companies (such as banks and insurers); instead, the new laws will be triggered if certain size thresholds (e.g., revenue or employee thresholds) are met on an individual or consolidated basis. Notably, from 2025, large private EU companies will be in scope of the CSRD. The EU laws are phased in over time, with the largest companies becoming subject to the new rules the earliest