CSRD
The Corporate Sustainability Reporting Directive (2022/2464/EU) is a regulatory framework implemented to enhance sustainability reporting by companies in the EU.
The directive was adopted by the European Commission on November 2022, and entered into force on January 2023.
The CSRD aims to expand the scope of reporting requirements beyond financial performance to include environmental, social, and governance (ESG) factors and make sustainability reporting more consistent, transparent, and reliable across the EU.
The CSRD aims to expand the scope of reporting requirements beyond financial performance to include environmental, social, and governance (ESG) factors and make sustainability reporting more consistent, transparent, and reliable across the EU.
Corporate Sustainability Reporting Directive
The CSRD applies to various types of companies, including large, small, and medium public-interest entities (PIEs). These include:
- Listed companies on regulated markets.
- Credit institutions, insurance companies, and cooperatives.
- Companies exceeding at least two of the following thresholds:
- Average net turnover of EUR 50 million.
- Average balance sheet of EUR 25 million.
- At least 250 employees.
Who needs to comply with the CSRD and when?
- Assess current reporting practices and enhance non-financial data collection and management.
- Collaborate with and engage stakeholders to identify material sustainability issues and improve reporting relevance and transparency.
- Develop a roadmap and allocate resources to prepare for compliance with CSRD obligations, including training staff and integrating sustainability into business strategy and operations.
How to report in accordance with the CSRD?
The CSRD aligns reporting requirements with the European Sustainability Reporting Standards (ESRS), ensuring consistency and comparability in sustainability reporting across the EU.
The ESRS represents a major shift, creating new demanding transparency obligations on companies regarding their commitment to sustainability and providing a framework for reporting on ESG topics.
It applies to companies within the scope of the CSRD, with first-time application starting from FY 2024 (reporting in 2025).