EU Corporate Sustainability Reporting Directive (CSRD)

The EU Corporate Sustainability Reporting Directive (CSRD) is a new reporting requirement for companies operating in the European Union (EU) that aims to enhance corporate sustainability reporting and improve the consistency and comparability of sustainability information across the EU.

The CSRD expands on the existing Non-Financial Reporting Directive (NFRD) and sets out new reporting requirements for companies, including:

1. Reporting on sustainability issues, such as environmental, social, and governance (ESG) factors, including climate change, biodiversity, and human rights.

2. Requiring companies to report on the impact of their activities on the environment and society.

3. Mandating digital reporting in an electronic, machine-readable format.

4. Introducing mandatory audit requirements for sustainability reporting.

5. Increasing the scope of the directive to include more companies, such as small and medium-sized enterprises (SMEs).

The CSRD is part of the EU's sustainable finance agenda and is designed to help investors, stakeholders, and society at large better understand a company's impact on sustainability issues.