CSRD Reporting Obligations And Their Impact On The Real Estate Sector

CSRD Reporting Obligations And Their Impact On The Real Estate Sector

Introduction-

In previous article, we delved into the impact of the CSRD on the Real Estate Sector's ESG Initiatives. In this article, we shift our focus to explore the reporting obligations stemming from CSRD and their implications for the Real Estate Sector.

The reporting obligations mandated by the CSRD will be gradually implemented between 2024 and 2028 for the subsequent categories of companies:

When assessing whether an enterprise falls into the categories of 'large,' 'medium,' 'small,' or 'micro,' the Accounting Directive employs the following criteria:

Even if they are not directly subject to CSRD requirements, numerous companies will still experience indirect impacts, as they will need to furnish various information to CSRD-compliant entities, whether in the capacity of a subsidiary, supplier, or customer.

Impact on the Real Estate Sector

The CSRD will profoundly impact the real estate sector by requiring companies in this field to report on various ESG (Environmental, Social, and Governance) aspects, including energy efficiency, carbon emissions, social responsibility, diversity, and inclusion. Major players such as REITs and developers must disclose their ESG policies, objectives, and performance while ensuring the accuracy of their sustainability reports. This will enhance transparency and comparability of sustainability data across the sector, benefiting investors, regulators, and stakeholders in assessing sustainability risks and opportunities. However, it's crucial to recognize that the CSRD may also introduce compliance and reporting challenges in the real estate industry.