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New Sustainability Reporting Act
With the adoption of the Sustainability Reporting Act (NaBeG) Parliament has transposed the Corporate Sustainability Reporting Directive (CSRD) into Austrian law and considerably expanded the reporting obligations for certain companies.
Consequently, certain companies must disclose their sustainability information according to uniform European standards. The relevant standards are the European Sustainability Reporting Standards (ESRS) issued by the European Commission, which are based on the Balance Sheet Directive.
The obligation to produce (consolidated) sustainability reports applies, taking transitional provisions into account, to companies or groups that, for consolidated group reporting, generate more than EUR 450 million in revenue and employ more than 1,000 people on average per year. In addition, it is new that the Third‑Country Company Reporting Act (DriBeG) also brings certain subsidiaries and branches of companies headquartered outside the EU within the scope of application. This significantly widens the pool of reporting‑obliged entities.
Changes relating to accounting
Besides the core sustainability reporting, the NaBeG also introduces adjustments in the area of accounting. Certain entities will from now on have to disclose in the management report detailed information on their most important intangible resources. This also includes the extent to which the business model depends on those resources.
Another amendment concerns balance‑sheet law. The previous requirement to capitalise a discount on liabilities is abolished.
Under the NaBeG, entrepreneurs will be more strongly obliged to publish standardised and audited sustainability information. Alignment with the ESRS ensures a Europe‑wide uniform structure of the reports and enhances their comparability for investors, lenders and other stakeholders.
Adjust internal reporting structures
Affected companies are therefore advised to adapt their internal reporting structures early to the new requirements, as the substantive and organisational demands can be considerable. Furthermore, it should be examined whether any reporting obligations arise from the status as a subsidiary or branch of a third‑country company. As the relevant legislative provisions come into force at different times, individual advice is recommended. We are happy to assist you with the necessary evaluation.
The obligation to produce (consolidated) sustainability reports applies, taking transitional provisions into account, to companies or groups that, for consolidated group reporting, generate more than EUR 450 million in revenue and employ more than 1,000 people on average per year. In addition, it is new that the Third‑Country Company Reporting Act (DriBeG) also brings certain subsidiaries and branches of companies headquartered outside the EU within the scope of application. This significantly widens the pool of reporting‑obliged entities.
Changes relating to accounting
Besides the core sustainability reporting, the NaBeG also introduces adjustments in the area of accounting. Certain entities will from now on have to disclose in the management report detailed information on their most important intangible resources. This also includes the extent to which the business model depends on those resources.
Another amendment concerns balance‑sheet law. The previous requirement to capitalise a discount on liabilities is abolished.
Under the NaBeG, entrepreneurs will be more strongly obliged to publish standardised and audited sustainability information. Alignment with the ESRS ensures a Europe‑wide uniform structure of the reports and enhances their comparability for investors, lenders and other stakeholders.
Adjust internal reporting structures
Affected companies are therefore advised to adapt their internal reporting structures early to the new requirements, as the substantive and organisational demands can be considerable. Furthermore, it should be examined whether any reporting obligations arise from the status as a subsidiary or branch of a third‑country company. As the relevant legislative provisions come into force at different times, individual advice is recommended. We are happy to assist you with the necessary evaluation.