How are companies preparing for CSRD compliant reporting?

On 21 April 2021, in the wake of the EU Green Deal, the European Commission adopted a proposal for a Corporate Sustainability Reporting Directive (CSRD) aimed at revising and strengthening rules introduced by the existing Non-Financial Reporting Directive (NFRD).

This proposal is intended to ensure that companies report reliable and comparable sustainability information necessary for stakeholders to evaluate companies’ non-financial performance. Its main purpose is to improve transparency for all stakeholders in order to re-orient investments towards more sustainable technologies and companies.

The proposed directive entails a dramatic increase in the number of companies subject to the EU sustainability reporting requirements, with an estimated 49,000 companies in Europe being subject to the new mandatory reporting requirements.

As we expect companies are preparing themselves for CSRD compliant reporting, our colleagues in KPMG Netherlands set out research how companies are preparing in order to be compliant with CSRD. 

This paper aims to provide an overview of the level of preparedness against the main disclosure requirements of the CSRD, as included in EFRAG’s Working Papers. The report concludes with key findings and recommendations for companies to consider.