Sustainability Disclosure Act: Enhanced Transparency on Sustainability Impacts

Effective October 17, 2024, the Sustainability Disclosure Act mandates that companies in Latvia publicly report on the sustainability impacts of their activities. This law applies to large, medium, and small companies with transferable securities traded on regulated markets, along with specific subsidiaries and branches of third-country companies.

Key Requirements:

Sustainability Reports: Entities must prepare sustainability reports aligned with European Commission standards, covering environmental, social, and governance (ESG) factors.
Subsidiary Requirements: Special provisions apply to subsidiaries of third-country companies, with certain exemptions granted to entities like credit unions and collective investment funds.
Data Acquisition: Entities are required to make reasonable efforts to obtain the necessary data and plan for its future acquisition.
The Act promotes transparency, ensuring that sustainability-related information is publicly accessible and comparable across entities, thereby supporting responsible business practices and investment decisions in Latvia.

Source: https://likumi.lv/ta/id/355381-ilgtspejas-informacijas-atklasanas-likums

Region:  Latvia