The CSRD - short for the Corporate Sustainability Reporting Directive – was published in the Official Journal of the European Union on 16 December 2022 and entered into force on 5 January 2023. This landmark directive, part of the European Green Deal, will require companies to report on their environmental, social, and governance (ESG) performance in a standardized manner.
Companies will need to rely on a combination of qualitative and quantitative, forward-looking and retrospective information, and will need to report in accordance with mandatory EU Sustainability Reporting Standards (ESRS), the Sustainable Finance Disclosure Regulation (SFDR), and the EU Taxonomy Regulation. The aim of the CSRD is to increase quality, transparency, and comparability of sustainability reporting.
In terms of timing, there is a tiered approach to implementation, with the Directive coming into force as of:
- 1 January 2024 for entities already in scope of NFRD,
- 1 January 2025 for all large entities[i],
- 1 January 2026 for all listed SMEs (except micro-undertakings[ii]), and
- 1 January 2028 for non-EU ultimate parent companies with a combined group turnover in the EU of more than EUR 150 million.
Check this page regularly for updates and key insights from our experts on how to prepare for this new Directive.
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