The Legal Evolution of Corporate Sustainability Reporting: Enhancing Transparency and Reducing Information Asymmetry from the Non-Financial Reporting Directive to the Corporate Sustainability Reporting Directive

This article explains the legal evolution of sustainability reporting in the European Union, tracing the journey from the Accounting Directive to the Corporate Sustainability Reporting Directive and the Non-Financial Reporting Directive. The article examines how each legal instrument has revolutionized corporate obligations and improved transparency on environmental and social governance. A specific focus is placed on the principle of double materiality, the role of the European Sustainability Reporting Standards in ensuring harmonization between member states, and the supervisory arrangements for ensuring effective application and accountability.