Corporate Sustainability Reporting Directive (CSRD)
What is it? The CSRD requires companies to disclose their ESG impacts and related risks, setting out new reporting requirements. Conducting a double materiality assessment is a foundational element.
Who will it affect and when will it come into law in Ireland? The first cohort of eligible companies (large, listed corporates) from financial year 2024, with reports to be published in 2025. Listed SMEs will have to comply from FY 2026 (report publication 2027) with an ‘opt out’ possible for a further 2 years (FY 2028, report publication 2029).
Green Claims Directive (GCD)
What is it? This Directive aims to stop greenwashing, when companies claim to be more environmentally friendly than they are. The GCD focusses on substantiating, communicating and verifying claims.
Who will it affect and when will it come into law? From September 2026 any company or product making claims to consumers in the EU, that state or imply a positive effect on the environment, will be affected. Example claims include, e.g., ‘carbon neutral’, ‘net zero’ or ‘packaging made from recycled material’.
Corporate Sustainability Due Diligence Directive (CSDDD)
What is it? The CSDDD establishes a corporate due diligence duty for companies to integrate responsible business practices into their daily operations, actively identifying and addressing risks to human rights and the environment and providing remediation where necessary.
Who will it affect and when will it come into law? Phased approach applying first to EU companies with more than 1,000 employees and a net global turnover of more than €450 million by July 2027. SMEs are not directly in scope, but they could be affected as contractors or sub-contractors, or suppliers to companies covered by the legislation.
European Union Deforestation Regulation (EUDR)
What is it? The EUDR requires companies trading in seven listed commodities to carry out extensive due diligence on the value chain to make sure goods do not result from recent (post 31 December 2020) deforestation, forest degradation or breaches of local environmental and social laws.
Who will it affect and when will it come into law? The EUDR covers seven commodities - Cattle, cocoa, coffee, oil palm, rubber, soya and wood – as well as many derived products such as chocolate, coffee and paper. The directive will come into effect from 30 December 2024 or 30 June 2025 for micro or small businesses.
Carbon Border Adjustment Mechanism (CBAM)
What is it? The CBAM puts a price on imported embedded carbon emissions generated in the production of certain goods to ensure the carbon price of imports is equal to the carbon price of production within the EU.
Who will it affect and when will it come into law? CBAM applies to imports of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen because these are carbon-intensive goods at most significant risk of carbon leakage. CBAM will apply in full from 2026. We are currently in a transitional phase (2023-2025).