Commercial Information Circular

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref. : EIC 230/6/16

20 December 2022

Dear Sirs,

Commercial Information Circular No. 984/2022

European Union (EU)* : Corporate Sustainability Reporting Directive

The European Parliament and the Council of the EU have adopted Directive (EU) 2022/2464, which is known as the Corporate Sustainability Reporting Directive (CSRD), to amend the existing requirements on corporate sustainability reporting.  The Directive was published on         16 December 2022 and is available at: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32022L2464&from=EN.

2.The CSRD introduces more detailed reporting requirements and mandatory sustainability reporting standards on matters covering environmental, social and human rights, and governance factors.  It covers all large companies and all companies listed on regulated markets (except micro-undertakings) in the EU.  Third-country companies (i.e. non-EU companies) which generate a net turnover of more than EUR 150 million in the EU and have at least a subsidiary or branch in the EU with net turnover exceeding EUR 40 million are also required to provide a sustainability report.

3.The CSRD will enter into force on 5 January 2023 and the EU Member States will bring into force relevant regulations by 6 July 2024.  The application will take place in stages from the financial year starting in 2024 with the reporting requirement on third-country companies to apply from the financial year starting in 2028 onwards.  For background and further details on the EU's rules on corporate sustainability reporting, please refer to the relevant webpage at https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.

4.For enquiries concerning the content of this circular, please contact the undersigned at 2398 5684.

Yours faithfully,

(Miss Tracy MAK)
for Director-General of Trade and Industry

* The EU comprises of 27 member countries, namely, Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.