Management of sustainable development of companies through the prism of corporate reporting in accordance with the requirements of CSRD and ESRS

Abstract

The concept of sustainable development is gaining more and more importance in business management, as it involves the creation of a management system that will balance the economic, ecological and social directions of its development. The newest tool for achieving such a balance is the Directive on Corporate Reporting on Sustainable Development. However, the perception of its requirements is not unambiguous due to the insufficient level of understanding of their significance. The purpose of the study was the transfer of knowledge on the introduction of the latest tool for managing sustainable business development – the formation of corporate reporting in accordance with the requirements of CSRD and European standards for the formation of corporate reporting on sustainable development (ESRS), which will allow attracting larger-scale ESG investments, which are critically important for the reconstruction of the country and achieving ambitious goals to preserve the environment and improve the quality of life. The research was carried out according to the triangulation approach, the application of which involved the use of several methods for the analysis of the normative and legal field for the formation of corporate reporting on sustainable development, namely: analysis and synthesis, comparative and critical analysis, content analysis, bibliographic method and generalisation method. CSRD and ESRS adopted by the European Financial Reporting Advisory Group (EFRAG) are reviewed and briefly characterised. The measures taken by EFRAG regarding the gradual transition from voluntary to mandatory reporting under CSRD and ESRS requirements are highlighted. It has been argued that CSRD and ESRS are a critical step towards a more sustainable business landscape. By harmonising reporting practices and improving the quality of disclosed information, these business sustainability management tools will empower stakeholders to make informed decisions, promote positive change and contribute to a just and sustainable future