The Corporate Sustainability Reporting Directive (CSRD) has been effective since January 2023. It amends requirements first introduced by the Non-Financial Reporting Directive (NFRD) in the Accounting Directive to ensure that sustainability reporting is consistent, comparable, relevant, and reliable. It will, for the first time, require companies of a certain size operating in the EU to report sustainability information specified through European Sustainability Reporting Standards (ESRSs).

After the initial draft by EFRAG and subsequent public consultations, the European Commission (EC) published the final text of its first set of twelve ESRSs as delegated acts on 31 July 2023. The scrutiny period of two months (extendable to four months) by the European Parliament and the European Council is now under way. If this timeline is observed, then the ESRSs will become effective for 2024 reporting periods for the first wave of companies.

Simultaneously, EFRAG continues to develop sector-specific standards, to be published in the coming years.

The resource center provides practical guidance on how to prepare for the new standards.