Corporate Sustainability Reporting – Between Politics and Reality

The paper explores key aspects, challenges, and opportunities related to corporate sustainability reporting within the context of the European Union’s Corporate Sustainability Reporting Directive (CSRD). It critically analyzes the regulatory and political dynamics surrounding the CSRD implementation, emphasizing the significant changes proposed by the Omnibus package. These changes notably reduce the directive’s initial scope and impact, raising concerns about decreased transparency and accountability. The report identifies key issues, such as excessive bureaucratic burdens, frequent regulatory changes, insufficient time for businesses to adapt, and concerns about reduced transparency and accountability. The implications of the sharp decline in the number of companies required to report sustainability information are outlined from the perspective of comparability. The main thesis emphasizes that sustainability reporting must go beyond regulatory compliance, providing indicators that are prepared, adapted, comparable, traceable, and used in the same robust way as indicators from the main financial statements, enabling effective management decision-making and long-term corporate responsibility.