Presented by the European Commission in 2021, the Corporate Sustainability Reporting Directive (CSRD) is a regulation designed to introduce standardized non-financial reporting across the EU. i.e. the way in which companies report on how they take into account environmental, social and governance issues.
It succeeds the NFRD (Non-Financial Reporting Directive), which has applied for large companies in the European Union (EU) since 2014. The scope of the CSRD exceeds that of the NFRD. It makes sustainability reporting mandatory for more than 45,000 companies at the European level, compared with around 12,000 previously. All large companies are concerned, as well as unlisted companies exceeding two of the following three thresholds:
- 250 employees (previously 500)
- 50 M€ net sales
- 25 M€ balance sheet total
Companies already subject to the NFRD will publish their first sustainability report from January 1, 2025. Others will have until early 2026.