Corporate Sustainability Reporting Directive (CSRD)
Shaping the Future of Sustainability Reporting
CSRD is here
The Corporate Sustainability Reporting Directive (CSRD) is now in effect. This directive aligns with the European Green Deal commitments and replaces the Non-Financial Reporting Directive (NFRD). The CSRD significantly increases the reporting requirements for organizations within its scope, ensuring greater availability and transparency of corporate sustainability disclosures for stakeholders.
Why the need for the CSRD?
The Corporate Sustainability Reporting Directive (CSRD) addresses the growing demand for transparent and comprehensive sustainability information. Investors, NGOs, and civil society, identified as “primary users” by the Directive, rely on this information to evaluate company performance and accountability.
Investors are increasingly aware of the risks and opportunities related to sustainability issues, as well as the broader environmental and societal impacts of their investments. NGOs and civil society seek to hold companies accountable for the wider impacts of their business activities.
The previous Non-Financial Reporting Directive (NFRD) was less stringent in its reporting requirements, leading to incomplete or inconsistent sustainability disclosures. The CSRD aims to close this gap by mandating comprehensive, comparable, reliable, and easily accessible sustainability reporting. This ensures that information about sustainability risks and impacts is publicly available and facilitates performance comparisons between companies.
The CSRD timeline in detail:
The Commission is adopting a phased approach for implementing the Directive. The CSRD will be implemented as follows:
How can companies prepare for the CSRD?
The CSRD directive and the ESRS’ are complex and extensive. Companies need to start preparing now before disclosures are due. DNV’s various support packages help upskill, align and get you started on preparing for the disclosure requirements, whilst simultaneously adding long-term value to your organisation.
