Skip to content
Contact
  • There are no suggestions because the search field is empty.

Corporate Sustainability Reporting Directive (CSRD)

The article explains what CSRD is, which companies are affected, what must be reported, how the requirements differ from previous regulations, and how companies can prepare, highlighting stricter standardized reporting (ESRS), broader scope, and double materiality requirements.

CSRD – New requirements transforming corporate sustainability work

The EU’s Corporate Sustainability Reporting Directive (CSRD) marks a new era in sustainability reporting. The directive aims to increase transparency and comparability in corporate sustainability data, while setting higher standards for quality, structure, and accountability.

What is CSRD?

CSRD replaces the previous Non-Financial Reporting Directive (NFRD) and expands both the scope and level of detail in reporting. The goal is to provide investors, customers, and other stakeholders with better decision-making information on companies’ sustainability performance.

Who is affected?

CSRD is introduced in phases:

  • 2024: Large companies already covered by NFRD
  • 2025–2026: Other large companies
  • 2026–2027: Listed small and medium-sized enterprises (with some exemptions)

Overall, significantly more companies are affected than before.

What must be reported?

Companies must report according to ESRS (European Sustainability Reporting Standards), which includes:

  • Environmental aspects (e.g. climate impact, emissions, resource use)
  • Social aspects (e.g. working conditions, human rights)
  • Governance (e.g. business ethics, risk management)

A key component is double materiality, where companies assess both how their operations impact the environment and society, and how sustainability issues affect the company’s financial performance.

What is new compared to previous regulations?

CSRD introduces standardized reporting under ESRS, mandatory assurance, digital reporting, and a stronger focus on data quality and traceability.

Challenges and opportunities

Many companies face challenges such as lack of structured ESG data, unclear internal processes, and the need for new systems. At the same time, CSRD creates opportunities through improved risk management, increased transparency, and enhanced competitiveness.

How to prepare?

To meet the requirements, companies should map their impacts, conduct a double materiality assessment, ensure proper data collection, train their organization, and implement the right system support.

Conclusion

CSRD is more than a reporting requirement—it drives the integration of sustainability into business strategy and creates long-term value for companies that act early.