ESG criteria: How they affect the business environment.

The term “ESG” has already been in the news and is expected to become increasingly so in the future. It refers to environmental (E), social (S) and corporate governance issues (G) that can affect a company’s ability to create value. Although these criteria are often described as “non-financial indicators”, they influence and are linked to a company’s performance and the way they are measured may have financial consequences. The transition to a greener economy has already become a priority for the European Union. The most recent Directive that came into force in 2023 is Directive (EU) 2022/2464 on Corporate Sustainability Reporting Directive (CSRD), which now applies to all large companies and those listed on regulated markets (except micro-entities). Compliance for the above companies starts from fiscal year 2024 and will be extended to the others until 2026 or

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