CSRD

Corporate Sustainability Reporting Directive

On January 1, 2024, a new EU directive with rules for sustainability reporting, the Corporate Sustainability Reporting Directive, was introduced. The directive will help meet the EU’s Green Deal target of climate neutrality by 2050 by steering towards sustainable investments.

CSRD requires companies to report on the impacts and risks of their social and environmental activities. The sustainability information to be provided by companies is determined by common standards: European Sustainability Reporting Standards (ESRS). Financial and sustainability information are put on an equal footing and must be comparable, accessible and transparent. This in turn is expected to lead to more informed investment decisions that also take into account risks arising from climate change and environmental degradation, among others.

In short, CSRD means that:

  • More companies must report on sustainability 
  • Reporting will be more comprehensive and will be done according to the new ESRS sustainability standards 
  • Sustainability information is equated with financial information 
  • Sustainability data to be reviewed and audited
  • Increasing demands on formality, quality and transparency
  • The sustainability report shall be submitted in the ESEF format.

The reporting requirements under the CSRD will be phased in from the financial year 2024:

  • January 1, 2024 (reporting in 2025) the largest companies already covered by the NFRD, the non-financial reporting directive. 
  • January 1, 2025 (reporting 2026) large companies with more than 250 employees, over 50 MEUR turnover and 25 MEUR balance sheet total.  
  • January 1, 2026 (reporting 2027) listed SMEs, small and non-complex credit institutions and captives. 

Let’s talk CSRD!

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