Transposition Of The CSRD In The Czech Republic

• Published date: 27 November 2023
• Subject Matter: Accounting and Audit, Corporate/Commercial Law, Accounting Standards, Corporate and Company Law
• Law Firm: Kinstellar
• Author: Ms Karla Rundtov' and Jan Lehk'

November 2023 - Directive (EU) 2022/2464 on corporate sustainability reporting (the "CSRD") was adopted at the end of 2022 and entered into force in January 2023, with a transposition deadline of 6 July 2024.

The Czech Republic has opted for a phased-in transposition process in two stages corresponding to the implementation timeframe under the CSRD:

This first phase, carried out as a minimum transposition, is already underway, namely in the context of the draft legislation on the consolidation of public budgets (the "Consolidation Package"). The Consolidation Package, among other legislative measures, introduces legislative provisions on sustainability reporting, to the extent corresponding to the first phase of reporting obligations under the CSRD (applicable to companies that already have reporting obligations under the current Non-Financial Reporting Directive (the "NFRD" (Directive 2014/95/EU)) and does not apply to other groups of companies. Additionally, the Consolidation Package introduces the process for the verification of sustainability reports.

The current expected effective date of the relevant provisions of the Consolidation Package is 1 January 2024.

The second phase, which will extend the reporting obligations to the remaining groups of companies...