CSRD (Corporate Sustainability Reporting Directive)

The Corporate Sustainability Reporting Directive (CSRD) is a European Union regulation that requires a broad range of companies to disclose detailed sustainability information on their environmental and social impacts, risks, and opportunities. It introduces mandatory European Sustainability Reporting Standards (ESRS) and extends reporting requirements to more companies, including listed SMEs and non-EU companies with significant EU activity. Disclosures cover governance, strategy, metrics and targets across various ESG topics like climate change, biodiversity, social issues, and business conduct. The CSRD also mandates limited assurance on reported information, with a transition to reasonable assurance over time. Implementation is phased, with large public-interest companies starting from FY2024 and other groups following in subsequent years.