A Closer Look at the CSRD: Reporting Requirements and Specifications

The Corporate Sustainability Reporting Directive (CSRD or “the directive”) is the new EU directive that amends the existing Non-Financial Reporting Directive (NFRD).

The CSRD entered into force on 5 January 2023. It aims to significantly increase corporate sustainability disclosures to meet users’ needs for comparable, relevant, and reliable information.

All large companies and all publicly listed companies (except microenterprises) will be in the scope of the CSRD. This means nearly 50,000 EU companies will have to report sustainability information compared to 11,600 companies under the existing regulation. However, publicly listed small and medium enterprises (SMEs) will be exempted from the application of the directive until 2028.

The CSRD also contributes to global coverage and harmonization of sustainability reporting standards, with the ESRS incorporating existing European and international initiatives.

For more in-depth information on this game-changing regulation, download our CSRD Research Note via the form below.