Corporate Sustainability Reporting Directive Overview

This guide provides an overview of the EU’s Corporate Sustainability Reporting Directive (CSRD), which modernizes the rules regarding environmental, social, and governance (ESG) information that companies are required to report. The document outlines the fundamental aspects of the CSRD, including the types of disclosures companies must make, such as governance processes, strategies, impact management, and metrics for measuring performance. It specifies that approximately 50,000 organizations, including large companies and listed SMEs, will be affected by the directive. The CSRD requires compliance with the European Sustainability Reporting Standards (ESRS), which entered into force on January 5, 2023. The guide details the structure and requirements of the ESRS, including the 12 standards that in-scope companies must follow. Additionally, it discusses the timeline for reporting and assurance for different categories of companies, emphasizing the importance of early preparation for compliance.