Justice Committee. The new Sustainability Reporting Act sets penalties, specifies reporting obligations and changes the rules of the game for auditors.
A government proposal for a sustainability reporting law with comprehensive changes to the law aims to expand the scope of companies’ sustainability reporting and adapt it to EU regulations through binding standards, as the parliamentary correspondence reports.
Compulsory penalties from the commercial register court
Table of Contents
- Compulsory penalties from the commercial register court
- Digital submission will be permitted in the future
- Foreign subsidiaries are also recorded
- Tax advisors & Co are allowed to check sustainability reports
- Independent “providers” should also be allowed to check
- New rules for auditor supervision
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According to the explanations, sustainability reporting should be given the same importance as financial reporting. This would require, among other things, an adjustment to the sanctions regime. Incorrect information or reports in this area should result in mandatory penalties from the commercial register court.
Digital submission will be permitted in the future
In order to enable digital submission of sustainability reports, the requirement to sign, for example, the annual financial statements should be abandoned and replaced by an equivalent, technology-neutral form of verification by the board or management.
Foreign subsidiaries are also recorded
The Third Country Company Reporting Act included in the package is intended, among other things, to subject subsidiaries and branches of third country companies to sustainability reporting that are based in Austria and have achieved sales revenues of more than €150 million in the Union on a consolidated basis.
Tax advisors & Co are allowed to check sustainability reports
There should also be changes in the area of the Public Accounts Professions Act. Tax advisors and auditors should be authorized to advise on or audit sustainability reporting. According to the explanations, an adaptation of the subject examinations is also planned. In addition, at least eight months of practical training on sustainability reporting should be introduced.
Independent “providers” should also be allowed to check
In principle, independent providers of audit services should also be able to carry out the audit in Austria, according to the explanations. However, this would first require legal regulations on equivalence with auditors. As soon as these regulations have been made, the regulations in the Corporate Code for auditors should also apply to independent providers of audit services.
New rules for auditor supervision
Implementation in the area of financial market legislation in a number of other laws is also necessary. For example, the Auditor Supervision Act – in addition to defining the supervisory regulations – primarily expands the cooperation between the Auditor Supervisory Authority (APAB) and the Financial Market Supervisory Authority (FMA) on the one hand, and the Chamber of Tax Consultants and Auditors (KSW) on the other.
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