SARAS, together with representatives of the World Bank, met with the Georgian Banking Association and the banking sector to discuss the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Standards (ESRS) developed by the European Commission

As is known, in 2022, the European Commission developed the Corporate Sustainability Reporting Directive (CSRD), which came into force for EU member states on 5 January 2023. This Directive replaces the existing Non-Financial Reporting Directive - with updated provisions and requirements.

At the meeting, representatives of SARAS and the World Bank presented the general content and requirements of the European Commission's Corporate Sustainability Reporting Directive to representatives of the Georgian banking sector and the Georgian Banking Association. The meeting drew attention to the important issues raised by the Directive developed by the European Commission. In particular, the requirement for entities to disclose information on environmental and social risks, which encourages them to report not only on the impacts on their business model, but also on their impact on environmental and social issues. The new rules strengthen the business sector and ensure the promotion of a green economy, which will be important for investors, civil society representatives and users.

At the event, SARAS representatives took part in the discussion and answered the questions raised. The implementation of the new directive in Georgia is a complex process that will be carried out gradually. During the meeting, the entities were informed about the planned activities of SARAS, which will serve to introduce the obligation to submit corporate sustainability reports in Georgia. SARAS also explained its approach that it is open to communication and receiving opinions from interested parties.

Stakeholders were also informed that it is planned to amend the Law of Georgia on Accounting, Reporting and Auditing. By 2025, the Ministry and the Government will consider submitting a draft law for further initiation.

As part of the dynamic approximation process, SARAS plans to work continuously with EU Member States and experts to ensure compliance with EU requirements. In this process, the implementation of corporate sustainability reporting standards in Georgia and the achievement of results consistent with the regulatory directive are of paramount importance.