The Corporate Sustainability Reporting Directive (CSRD) is the European Union's bold step towards enhancing corporate transparency in sustainability reporting.

Building on the Non-Financial Reporting Directive (NFRD), the CSRD broadens the scope and depth of disclosure requirements. It mandates companies to provide detailed information on environmental, social, and governance (ESG) issues, making sustainability reporting as integral as financial reporting.

The CSRD aims to ensure that stakeholders, including investors, customers, and regulators, have access to reliable and comparable sustainability data. This transparency is expected to drive more sustainable business practices across the EU. The directive also aligns with the EU’s broader sustainability goals, particularly in achieving climate neutrality by 2050.

If you're just getting started with understanding CSRD, it's important to note that it applies to a wider range of companies than the NFRD, including large non-EU firms with significant EU operations.

For further reading, check out our CSRD Reporting Guide.

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