Provide more detailed sustain­ability reports

Large enterprises in the Netherlands will soon be required to provide more detailed reports on their sustainability efforts. This obligation applies to publicly listed companies, banks, and insurers. Accountants will assess these sustainability reports and will need to meet stricter requirements to do so. This is outlined in a new executive order from Minister Weerwind for Legal Protection and a legislative proposal from Minister Van Weyenberg of Finance.

The new regulations, based on a European directive, will be implemented gradually. Starting from the 2024 financial year, large publicly listed companies, banks, and insurers with more than 500 employees will need to comply with the new reporting requirements. Other large enterprises will follow in subsequent years. The reports must provide insight into ecological, social, and employment matters, human rights, and the fight against corruption and bribery. The aim is to clarify the impact of the enterprise on the climate and vice versa.

Stricter requirements for accountants

Accountants will issue a statement with a limited level of assurance, which may be expanded to a reasonable level of assurance in the future. To issue these statements, accountants and accounting firms must meet additional requirements. The introduction of sustainability reporting is part of the implementation of the Corporate Sustainability Reporting Directive (CSRD) by the European Union. The European Commission has also issued standards that further specify these reporting obligations.

Legislation under review by the Council of State

The new law, which sets rules for accountants and their organizations, is currently being reviewed by the Council of State. Following this, it will be considered by the House of Representatives and the Senate. The executive order with the reporting obligation will first be sent to the House of Representatives and the Senate and will then be submitted to the Council of State for advice.

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