The Corporate Sustainability Reporting Directive (CSRD) is a legislative initiative of the European Union aimed at expanding and tightening the requirements for non-financial reporting by companies. This directive is designed as a successor to the Non-Financial Reporting Directive (NFRD).
Expanded Scope: The CSRD extends the scope of companies required to report non-financial information, including a larger number of medium-sized and large enterprises, not just those that are publicly traded.
Standardized Reporting Requirements: The directive introduces standardized requirements and formats for non-financial reporting, aiming to enhance the comparability and quality of these disclosures across companies and sectors.
More Detailed and Higher Quality Information: It mandates more detailed information on sustainability, including environmental, social, and governance (ESG) factors, covering issues such as climate change, human rights, anti-corruption measures, and more.
Audit and Assurance: The new directive requires external assurance of non-financial information, ensuring its accuracy and reliability.
Digital Reporting: The directive encourages the digitalization of reporting, making it easier for investors and other stakeholders to access these disclosures.