The European Union has finalized a deal with large companies ensuring their compliance to corporate sustainability from 2024. As per reports, the agreement aims to end greenwashing and lay the groundwork for sustainability reporting standards at the global level.

It urges listed or unlisted companies with over 250 staff and turnover of €40 million ($42.13 million) to disclose environmental, social and governance (ESG) risks and opportunities, and the impact of their activities on the environment and people.

Some smaller listed companies will be subject to a lighter set of reporting standards, which they can opt out of until 2028. Having a clean human rights record will become just as important as having a clean balance sheet, says Pascal Durand, who led negotiations for parliament. Disclosures will have to be externally audited, Durand added further stating the rules make room for new players offer this service.