Is there an obligation to draft a sustainability report if I am part of a group?

The purpose of annual reporting is that it provides insight into the performance of (i) any undertaking and (ii) the group of undertakings ( consolidated). However, there are exceptions. Many undertakings are part of a group. To reduce the administrative burden within a group, it is possible - under certain conditions – for an individual group-member to be exempted from the reporting obligation. The sustainability information must then be included in the consolidated report of the head of the group (the parent undertaking).

In addition, exempted undertakings need to include a reference in their annual report to the consolidated sustainability report – the report of the parent undertaking whose reporting contains the sustainability information of the group (article 1(4) of the CSRD (article 19bis (9) and article 5 of the draft implementation decree directive sustainability reporting). This exemption is comparable to the exemptions for the financial statements. Users of sustainability information gain access to the sustainability information and insight into the entire group by sustainability information which is shared by the parent undertaking.

Questions CSRD & ESRS

Do you have questions about the CSRD, ESRS or are you missing a question in this list? Send us an e-mail and we will contact you as soon as possible. For technical questions, EFRAG has set up an ESRS Q&A platform (latest release of technical explanations: December 2024). Here you can submit a question, and also find answers to previously asked questions.

Questions regarding individual facts or circumstances will not be answered through these channels. For such questions, we recommend that you contact an advisor such as your company accountant.

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