Corporate Sustainability Reporting Directive

Environmental, social and governance concerns (ESG) - European Union.

(CSRD).

The European Union's Non-Financial Reporting Directive (NFRD) which began to became effective from January 2021. Companies currently under the scope of the NFRD have to disclose information on how - and to what extent - their operations are associated with environmentally sustainable economic activities.

Sustainability reporting scope broadens

"Sustainability reporting will [become] a reality for most major international companies and their banks in 2025. Around 11,000 major companies operating in the EU have already been preparing reports under the EU corporate sustainability reporting directive (CSRD), which are due to be released this year.

From 1 January [2025], companies [exceeding 2 or more] of these thresholds much also start to prepare reports: 250+ employees, EUR 50m+ annual turnover; or EUR 25m+ in assets."

Financial regulatory changes in 2025 and beyond, Keith Nuthall, The Treasurer Issue 1 of 2025, p10.

The strengthened Corporate Sustainability Reporting Directive (CSRD) - among other changes - with effect from 2023:

• Extended the scope of mandatory sustainability reporting to all large companies and all companies listed on regulated markets (except listed micro-enterprises).
• Introduced more detailed reporting requirements, and a requirement to report according to mandatory EU sustainability reporting standards.
• Required auditing of reported sustainability information.

See also

• Audit
• Environmental, social and governance (ESG)
• European Sustainability Reporting Standards (ESRS)
• Non-Financial Reporting Directive (NFRD)
• Regulation
• Sustainability
• Sustainability reporting

Other resource

• Proposal for a Corporate Sustainability Reporting Directive - European Commission