Since 2013, the EU has regulated the reports to be published by companies and organizations, i.e. the so-called non-financial reports, in which obliged companies evaluate and present to the public their non-financial values, environmental protection, social-societal, human rights, anti-corruption commitments and environment. In Hungary, since 2018, some organizations have also had to publish their non-financial reports.
These reports are gaining more and more emphasis in business life, responsible investors are increasingly curious about the environmental and social effects of a given company or activity, as well as the long-term values of the company or activity under investigation.
In addition to the mandatory ones, many large companies voluntarily prepare sustainability reports, which are usually compiled in accordance with the Global Reporting Initiative (GRI) standard.
Based on the current EU directives, it is mandatory for listed companies, banks, and insurance companies of public interest to publish non-financial reports if they employ more than 500 employees.
In April 2021, a draft of the Corporate Sustainability Reporting Directive (CSRD) was submitted to the EP and the Council, which significantly expands the obligation to report on corporate sustainability, so it is expected that five times as many companies will become obligated as at present, including all large companies and listed companies.
The EU's package of standards regulating the sustainability report in detail is also being prepared, which is expected to enter into force in the fall of 2022.
