Implications of the Corporate Sustainability Reporting Directive

This guide outlines the implications of the Corporate Sustainability Reporting Directive (CSRD) for policy makers and companies outside the EU. It explains that with the CSRD coming into effect in January 2024, sustainability reporting will become mandatory for approximately 50,000 companies in Europe, including large companies and those listed on European stock exchanges. The directive will also extend reporting obligations to non-EU companies with securities listed in the EU and those generating significant turnover within the EU. Policy makers are advised to ensure that national policies support businesses in meeting these new reporting standards. The document details the options available for non-EU companies regarding compliance with the European Sustainability Reporting Standards (ESRS), including the potential use of domestic reporting guidelines deemed equivalent to ESRS. It emphasizes the importance of aligning domestic standards with ESRS to facilitate compliance and reduce reporting burdens for non-EU businesses. Additionally, it discusses the interoperability between GRI standards and ESRS, which can aid in achieving compliance.