Mandatory ESG reporting in Slovakia: Ready for 2025?

From 2025, all large companies in Slovakia will have to comply with new ESG (Environmental, Social, and Governance) reporting regulations, as stipulated by Directive reporting, as stipulated by the Corporate Sustainability Reporting Directive (CSRD). The directive extends the reporting obligation not only to public interest entities (such as banks and insurance companies) but also to other large companies. This change is part of broader European efforts to improve business transparency and sustainability, as well as to strengthen public confidence in corporations.

What is ESG reporting?

ESG reporting (Environmental, Social, Governance) is a systematic process of collecting, evaluating, and publishing information about the impact of companies' business activities. It provides a transparent view of companies' sustainable and ethical practices in accordance with international standards such as GRI (Global Reporting Initiative) and European Union directives such as CSRD (Corporate Sustainability Reporting Directive).

ESG reporting focuses on three main areas:

Environmental (E) – Takes into account the company's impact on the environment. It includes factors such as greenhouse gas emissions, waste management, efficient use of resources, and strategies to reduce environmental impact.

Social (S) – Includes issues related to the social impacts of business, such as working conditions, human rights, equal opportunities, occupational safety, and community contribution.

Governance (G) – Covers corporate governance issues, including transparency, ethical behavior, protection of shareholder rights, and internal controls to prevent corruption and fraud.

Companies will have to provide data on their approach to the environment, employees, and society, as well as on corporate governance practices. In addition, this information will have to be included in the annual report as part of the sustainability report. To implement these requirements, companies will need to set up systems for collecting and evaluating data that will allow them to monitor their sustainability impacts, risks, and opportunities. They will also be required to report regularly and have this data audited (assured) externally to ensure its accuracy and transparency.

Why is ESG reporting important?

Mandatory ESG reporting comes in response to growing expectations from investors, customers, and regulators. It allows companies to demonstrate their commitment to sustainable and responsible business practices, which can lead to a better reputation and long-term success.

Since January 1, 2024, ESG reporting has been mandatory for large public-interest entities with more than 500 employees. In January 2025, this obligation will be extended to other large companies that meet at least two of the following three criteria: employ more than 250 people, have a turnover of more than €50 million, or have total assets exceeding €25 million. These companies will have to start collecting and evaluating the data needed for ESG reporting so that they can publish their first reports covering data for the previous year in 2025.

This obligation will continue to expand in the future. From January 1, 2026, the ESG reporting obligation will also apply to small and medium-sized companies that have issued securities and are tradable on the stock exchange. Subsequently, from January 1, 2028, companies outside the EU with a turnover of more than €150 million and at least one branch or subsidiary in the EU will also have to implement ESG reporting.

How to prepare for new requirements?

Preparing for mandatory ESG reporting requires a thorough approach to data collection and evaluation. Companies will need to:

Establish internal processes to gather the necessary information on the environmental, social, and governance aspects of their activities.

Develop strategies and targets to improve your ESG indicators.

Ensure data transparency and accuracy through external verification.

How can ECTA, s.r.o. help you?

At ECTA, s.r.o., we understand the challenges that mandatory ESG reporting brings. We offer comprehensive services in the implementation of ESG standards and ensure that your business complies with the latest regulatory requirements. Our expert teams are ready to assist you with the preparation, implementation, and management of ESG reports, including conducting internal audits to ensure the accuracy and transparency of your data.

We also specialize in ESG training, which will help you better understand the environmental, social, and governance aspects of business and implement them into your strategies.

Be prepared for 2025 and turn mandatory ESG reporting into an opportunity for growth and strengthening trust in your company. Contact us to learn more.