September 26, 2025

Corporate Sustainability Reporting Directive (CSRD)

The Corporate Sustainability Reporting Directive (CSRD) is a European Union (EU) legislation that requires large companies to publish regular reports on their environmental and social impact activities. Introduced in 2023, the CSRD aims to ensure that businesses report reliable and comparable sustainability information, enabling investors, consumers, policymakers, and other stakeholders to evaluate their non-financial performance and make more informed decisions

Why was the CSRD introduced?

To increase transparency on sustainability matters and support the European Green Deal objectives.
To meet growing demands from investors, civil society, and other stakeholders for reliable and relevant ESG (environmental, social, and governance) information.
To level the playing field and prevent fragmentation in sustainability reporting practices across EU member states.

How will the CSRD work?

It requires companies to report detailed information on their impacts related to environmental, social, and governance matters.
Reporting will follow the European Sustainability Reporting Standards (ESRS) being developed by EFRAG.
Companies will need to perform double materiality assessments, considering both impacts on the company and impacts caused by the company.
Reports will be subject to independent third-party assurance.

Timeline

April 2021: The European Commission adopted the CSRD proposal.
November 2022: The CSRD was formally adopted by the European Parliament and Council.
January 2024: The CSRD will start applying to large companies already subject to the Non-Financial Reporting Directive (NFRD).
January 2025: The CSRD will apply to all other large companies and listed SMEs.
January 2026: The CSRD will apply to non-EU companies with significant operations in the EU.

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Corporate Sustainability Reporting Directive (CSRD)

October 9, 2025

Carbon Accounting

A systematic approach to measure, monitor, and report greenhouse gas emissions from various sources, including businesses, organizations, and activities.