Works council involvement in sustainability reporting
On 26 February 2025, the European Commission published a simplification package that will remove approximately 80% of companies from the scope of the Corporate Sustainability Reporting Directive (CSRD) and focus the sustainability reporting obligations on the largest companies. This is also expected to have consequences for the Dutch Sustainability Reporting Directive Implementation Act, which was submitted to the House of Representatives on 13 January 2025. This act implements the CSRD and requires companies to include sustainability information in their management report, sets rules for the audit of that information and requires listed companies to make statements relating to sustainability reporting generally available.
Based on the implementation act, employee participation is involved because the following obligations are laid down in the Works Councils Act:
- Annual consultation meeting between the entrepreneur and the works council on sustainability reporting, including:
- in any case the relevant information from the (consolidated) sustainability reporting;
- the way in which this sustainability information is obtained and verified.
- Authority of the works council to express its views.
If no works council has been established, but there is a staff representation, these obligations apply with regard to the staff representation.
We would like to keep you informed of the legislative process. For more information, please contact the Employment and Pensions Team at Van Doorne, Niels van Boekel and Eline Jekel.
