Corporate Sustainability Reporting Directive Overview

This guide provides an overview of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). The ESRS, developed by the European Financial Reporting Advisory Group (EFRAG), outlines the requirements for disclosures that companies must include in their annual sustainability statements starting in 2025. The document details the current status of the CSRD, including the transposition deadline for EU Member States and the applicability of the ESRS. It describes the steps companies are taking to prepare for compliance, such as conducting applicability assessments and establishing oversight procedures. The guide also outlines who is required to report under the CSRD, highlighting its broader scope compared to the previous Non-Financial Reporting Directive. Additionally, it explains the reporting requirements and the concept of double materiality, which is crucial for determining what companies must disclose regarding their sustainability impacts and policies. Companies are advised to consider their due diligence processes in relation to sustainability issues as part of their reporting obligations.