What is the Corporate Sustainability Reporting Directive (CSRD)?
The Corporate Sustainability Reporting Directive (CSRD), a recent EU legislation, requires large companies to publish regular reports on their environmental and social impact activities. This transparency initiative aims to assist investors, consumers, policymakers, and other stakeholders in evaluating the non-financial performance of these companies.
Which companies are required to comply with the CSRD?
The CSRD broadens the sustainability reporting mandate to a larger number of companies than the existing Non-Financial Reporting Directive (NFRD) which requires large public interest organisations to report on sustainability performance.
Companies meeting at least two of the following three conditions will have to comply with the CSRD:
1) €40 million in net turnover
2) €20 million in assets
3) 250 or more employees
Non-EU companies with over €150 million turnover in the EU must also adhere to the directive.
Timeline for CSRD Implementation
On 21 April 2021, the EU Commission announced the adoption of the Corporate Sustainability Reporting Directive (CSRD) as part of the European Green Deal commitment.
The Corporate Sustainability Reporting Directive (CSRD) became effective on 5 January 2023 and the rules will be implemented between 2024 and 2028.
From 1 January 2024 for large public-interest companies (with over 500 employees) already subject to the Non-Financial Reporting Directive (NFRD), reports are due in 2025.
From 1 January 2025 for large companies that are not currently subject to the NFRD (with more than 250 employees and/or €40 million in turnover and/or €20 million in total assets), reports are due in 2026.
From 1 January 2026 for listed SMEs and other undertakings, reports are due in 2027. SMEs can opt-out until 2028.
A new era in sustainability reporting
The proposed Corporate Sustainability Reporting Directive (CSRD) is set to have a profound impact on the landscape of sustainability reporting within the European Union.
With an estimated increase to about 50,000 companies falling under its jurisdiction, this directive represents a significant expansion in the scope of reporting requirements.
The CSRD aims to enhance transparency and accountability by compelling businesses to disclose their sustainability practices in a standardised digital format, facilitating clearer reporting and enabling easier comparison between companies.
Not only does the CSRD mandate reporting for a larger number of companies, it also seeks to drive a fundamental shift towards more sustainable business practices.
By providing investors with essential data to assess a company's sustainability performance, the directive serves as a crucial tool for promoting responsible and environmentally friendly operations.
Beyond mere compliance, the CSRD can be leveraged by companies as a catalyst to accelerate their sustainability initiatives and embark on a journey towards becoming more environmentally conscious organisations.
Getting your business ready for the Corporate Sustainability Reporting Directive (CSRD)
To navigate the complexities of CSRD reporting and ensure compliance with the new EU requirements, the CSRD Institute offers a range of professional online courses tailored to address every aspect of the directive.
Whether you are new to sustainability reporting or seeking advanced insights, our courses are designed to equip you with the knowledge and skills needed to meet the challenges posed by the evolving regulatory landscape.
Embark on your CSRD learning journey today by taking our FREE introductory course and gain a deeper understanding of the key principles and practices driving sustainable business reporting.
The Corporate Sustainability Reporting Directive (CSRD), a recent EU legislation, requires large companies to publish regular reports on their environmental and social impact activities. This transparency initiative aims to assist investors, consumers, policymakers, and other stakeholders in evaluating the non-financial performance of these companies.
Which companies are required to comply with the CSRD?
The CSRD broadens the sustainability reporting mandate to a larger number of companies than the existing Non-Financial Reporting Directive (NFRD) which requires large public interest organisations to report on sustainability performance.
Companies meeting at least two of the following three conditions will have to comply with the CSRD:
1) €40 million in net turnover
2) €20 million in assets
3) 250 or more employees
Non-EU companies with over €150 million turnover in the EU must also adhere to the directive.
Timeline for CSRD Implementation
On 21 April 2021, the EU Commission announced the adoption of the Corporate Sustainability Reporting Directive (CSRD) as part of the European Green Deal commitment.
The Corporate Sustainability Reporting Directive (CSRD) became effective on 5 January 2023 and the rules will be implemented between 2024 and 2028.
From 1 January 2024 for large public-interest companies (with over 500 employees) already subject to the Non-Financial Reporting Directive (NFRD), reports are due in 2025.
From 1 January 2025 for large companies that are not currently subject to the NFRD (with more than 250 employees and/or €40 million in turnover and/or €20 million in total assets), reports are due in 2026.
From 1 January 2026 for listed SMEs and other undertakings, reports are due in 2027. SMEs can opt-out until 2028.
A new era in sustainability reporting
The proposed Corporate Sustainability Reporting Directive (CSRD) is set to have a profound impact on the landscape of sustainability reporting within the European Union.
With an estimated increase to about 50,000 companies falling under its jurisdiction, this directive represents a significant expansion in the scope of reporting requirements.
The CSRD aims to enhance transparency and accountability by compelling businesses to disclose their sustainability practices in a standardised digital format, facilitating clearer reporting and enabling easier comparison between companies.
Not only does the CSRD mandate reporting for a larger number of companies, it also seeks to drive a fundamental shift towards more sustainable business practices.
By providing investors with essential data to assess a company's sustainability performance, the directive serves as a crucial tool for promoting responsible and environmentally friendly operations.
Beyond mere compliance, the CSRD can be leveraged by companies as a catalyst to accelerate their sustainability initiatives and embark on a journey towards becoming more environmentally conscious organisations.
Getting your business ready for the Corporate Sustainability Reporting Directive (CSRD)
To navigate the complexities of CSRD reporting and ensure compliance with the new EU requirements, the CSRD Institute offers a range of professional online courses tailored to address every aspect of the directive.
Whether you are new to sustainability reporting or seeking advanced insights, our courses are designed to equip you with the knowledge and skills needed to meet the challenges posed by the evolving regulatory landscape.
Embark on your CSRD learning journey today by taking our FREE introductory course and gain a deeper understanding of the key principles and practices driving sustainable business reporting.
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