The article discusses the importance of environmental, social, and governance (ESG) reporting for companies in Europe. The Corporate Social Responsibility Disclosure (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) are two upcoming EU directives that companies need to pay attention to. The CSRD introduces extensive reporting and disclosure obligations that cover a wide array of sustainability areas, while the CSDDD places the duty of due diligence on companies to identify, prevent, and resolve or mitigate the negative impact resulting from business operations on people and the environment. Both directives are mandatory, and failure to comply may result in fines and penalties.
