The Corporate Sustainability Reporting Directive is a directive that requires companies to report on the impact of corporate activities on the environment and society, and requires the audit (assurance) of reported information. The CSRD amends the existing Non-Financial Reporting Directive (NFRD) broadening the reporting requirements. Following this directive, a broader set of large companies, as well as listed SMEs, will now be required to report on sustainability.
Companies subject to the CSRD will have to report according to European Sustainability Reporting Standards (ESRS). The draft standards are developed by the EFRAG. The Commission should adopt the first set of standards by mid-2023, based on the draft standards published by EFRAG.
