CO2 reporting obligation

Beginning in 2024, the European Union's obligation to report on sustainability issues and data (CSRD), that is, on the areas of environmental, social and corporate governance, comes into force. One of the elements covered by this directive is the obligation to report direct and indirect CO2 emissions for selected sectors of the economy.

The purpose of this provision is to increase the transparency of environmental activities and enable monitoring of progress in the fight against climate change.

Who is subject to the reporting obligation and from when?

2024 - companies listed on the stock exchange and with more than 500 employees (record their CO2 emissions and report in the 2025 report);

2025 - companies that are not listed and meet 2 of the 3 conditions:

- more than 250 employees;
- revenues of more than €40 million;
- total assets of more than €20 million;

(they record their CO2 emissions and report in the 2026 report)

2026 - small and medium-sized companies listed on the stock exchange and meeting 2 of the 3 conditions:

- more than 10 employees;
- revenues of more than 700.000 EUR;
- total assets of more than 350.000 EUR;

(they record their CO2 emissions and report them in the 2027 report)

2027 - companies subject to non-EU entities and with revenues of more than €135 million within the EU (recording CO2 emission levels for reporting purposes).

Reporting obligations not only serve to protect the environment, but can also bring economic benefits. Companies that invest in sustainability often achieve better financial results and gain a competitive advantage. Customers' environmental awareness is growing, and many of them prefer to cooperate with companies that care about the environment.

Author: Wioletta Mazur