The Corporate Sustainability Reporting Directive (CSRD) is the new European Union regulation that requires thousands of companies to report on sustainability with a much more rigorous and standardized approach 📅.
It replaces the previous NFRD and expands the number of companies required to report. Its goal is to increase the transparency, reliability, and comparability of ESG information across the EU.
Who does it apply to and since when?
- From 2024: Companies with more than 500 employees (already subject to NFRD)
- From 2025: Large companies (>250 employees or €40M turnover)
- From 2026: Listed SMEs and other specific entities
- Voluntary until 2028 for some listed SMEs
What does CSRD require?
- Use of common standards (ESRS) developed by EFRAG
- Digital and structured reporting (XBRL) to facilitate access and analysis
- Mandatory external audit
- Double materiality analysis: the impact of the company on the environment and vice versa 🔍
Compatibility and integration
CSRD recognizes frameworks like GRI, TCFD, and SASB, and establishes synergies with the European taxonomy and financial regulation SFDR. This facilitates integration for companies already familiar with other reporting models.
Recommendations to comply with CSRD
- Conduct a situation diagnosis
- Implement a system for collecting and validating ESG data