The EU Corporate Sustainability Reporting Directive (CSRD), in force since January 2023, requires large companies disclose detailed information on Environmental, social and governance (ESG) matters across their operations and value chains. Reporting includes e.g., due diligence processes, governance structures, and sustainability performances. With the concept of double materiality, the CSRD requires the disclosed information to be relevant from either an impact perspective or a financial perspective, or both.
The CSRD is the successor of the Non-Financial Reporting Directive (NFRD), which also imposed obligations on large firms to report on non-financial information regarding the ESG performance. The CSRD has broadened the scope of application and also established binding sustainability reporting standards, further requiring third-party verification.
The CSRD is also subject to changes due to the Omnibus Proposal.
Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting