What is Corporate Sustainability Reporting Directive (CSRD) and Why is it Important for your business?

The Corporate Sustainability Reporting Directive (CSRD) is an EU regulation that mandates sustainability reporting for certain companies operating in the EU. Learn More

The CSRD aims to increase transparency and comparability of corporate sustainability reporting, promoting responsible business practices and investor confidence.

The CSRD applies to a wider range of companies compared to the previous NFRD, including large listed companies, large non-listed companies, and SMEs meeting certain criteria. Learn More

Companies must report on environmental, social, and governance (ESG) factors, including their impact on sustainability and how sustainability risks are managed (Double Materiality).

Compliance timelines are phased in, with large listed companies needing to report for the financial year starting on or after January 1, 2024. Learn More

Familiarize yourself with the CSRD requirements, assess your company’s impact and risks, and consider using CSRD reporting software to streamline the process.

The CSRD replaces the Non-Financial Reporting Directive (NFRD), which was the previous EU regulation mandating sustainability reporting for certain companies. Learn More

The CSRD applies to a wider range of companies compared to the previous NFRD (Non-Financial Reporting Directive). Here’s a breakdown:

Large listed companies: These are companies already subject to existing reporting requirements.
Large non-listed companies: These are companies meeting specific size criteria (e.g., employees, turnover, assets) and not publicly listed on a stock exchange.
SMEs (Small and Medium-Sized Enterprises): Compliance for listed SMEs is phased in later, while non-listed SMEs may have an opt-out option depending on specific criteria.

What are the pillars of CSRD? Similar to ESG reporting, the CSRD focuses on three key pillars: Environmental: This pillar focuses on a company’s impact on the environment, including greenhouse gas emissions, resource consumption, waste management, and pollution. Social: This pillar considers a company’s social practices, such as labor standards, human rights, diversity and inclusion, and community engagement. Governance: This pillar evaluates a company’s governance structure, including risk management practices, executive compensation, board composition, and ethical business conduct. Learn More

Penalties for non-compliance vary by EU member state, but may include fines or reputational damage.

Benefits include attracting ESG-focused investors, enhancing brand reputation, and improving risk management. Learn More

US companies with a subsidiary or branch in the EU meeting the size criteria may need to comply with the CSRD for that specific entity.

The CSRD is expected to set a global standard for sustainability reporting, influencing practices beyond the EU. Learn More