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Sweden: CSRD implemented into national law

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In brief

On Wednesday 29 May 2024, the Swedish Parliament voted to adopt a bill to transpose the EU Corporate Sustainability Reporting Directive (CSRD) into local law. The new reporting requirements will enter into force on 1 July 2024 meaning that companies will have to report pursuant to the CSRD for the first time for the fiscal year beginning after June 2024. Accordingly, all companies with a calendar year as fiscal year will have to apply the legislation for the first time for FY2025.

In case you have any questions, please reach out to any authors of this alert.
 

This is CSRD

  • The CSRD implements new sustainability reporting requirements for all EU countries. 
  • The CSRD replaces the previous NFRD (Non-Financial Reporting Directive) and sets a higher reporting standard than previously. 
  • The purpose of the CSRD is to provide a harmonized reporting standard throughout the EU which in turn will help investors, civil society organizations, consumers and other stakeholders to assess the sustainability efforts of companies.

Key takeaways from the Swedish implementation

  • Pursuant to the EU directive, the first companies in the EU will start reporting under CSRD for FY2024. Due to the timing of the Swedish implementation, Swedish companies will start reporting for the first time for FY2025. 
  • The requirement to submit a sustainability report under the CSRD, compared to the NFRD, is extended to listed SMEs, large or listed subsidiaries and certain large branches of third country companies with significant activities in the EEA.
  • The sustainability report must be audited by an auditor.
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Author

Carl Svernlöv — listed as a highly recommended lawyer in several law publications — practices in the areas of mergers and acquisitions, corporate law and corporate governance. He is an adjunct professor of the law of business associations at the Department of Law at Stockholm University and a member of the Scientific Counsel of non-profit Stockholm Centre for Commercial Law. In 2009 he presented an official report commissioned by the Swedish Government (SOU 2009:34) proposing simplifications to the Swedish Companies Act for small and medium-sized companies, many of now have been enacted into law. Prof. Svernlöv is the author of 12 books and over 150 articles on Swedish and international business and commercial law.

Author

Marta Janiak is a member of Baker McKenzie’s Corporate Group in Stockholm. Marta joined Baker McKenzie in 2019 as a paralegal. She received her LL.B from the University of Surrey in 2016 and an LL.M from the University of Groningen in 2018. In 2024 she received an LL.M. from the University of Stockholm and began working as an associate at Baker McKenzie Stockholm.

Author

Albin Stålberg is a member of Baker McKenzie’s Corporate / M&A Practice Group in Stockholm. Albin joined the Firm as an associate in 2022.

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