Sustainability Reports For Business: How To Prepare For The Unexpected?

• Published date: 23 January 2025
• Subject Matter: Corporate/Commercial Law, Corporate and Company Law, Corporate Governance, Shareholders
• Law Firm: Ellex
• Author: Ms Ausra Abraitytė-Gedminė and Rūta Armon&#279

Sustainability has become a popular topic in all industries. Investors are also paying close attention to this issue, requiring companies to provide adequate and relevant information on their sustainability performance before making investment decisions.

Lithuania, like other EU countries, has started to implement Directive (EU) 2022/2464 of the European Parliament and of the Council, which aims to regulate companies' provision of sustainability information. From next year onwards, this topic will become relevant for a significant number of companies. If a company has assets of more than €25 million, or sales revenues of more than €50 million, or has more than 250 employees – two of the three requirements – will require the preparation and submission of sustainability reports. Rūta Armonė, Partner at Ellex Valiunas, and Auara Abraitytė-Gedminė, Associate at Ellex Valiunas, share their insights on this matter.

Main innovations introduced by the new regulation

Sustainability reporting becomes mandatory for companies

Under the previous regulation, companies established in Lithuania and listed on the Lithuanian or international stock exchanges were obligated to report on a specific degree of social responsibility.

However, starting 2025, non-listed companies whose assets at the end of the financial year exceed EUR 25 million, or whose sales revenues exceed EUR 50 million, or whose number of employees exceeds 250 will be...