Corporate Sustainability Reporting Directive.
The EU law requiring companies to report on their environmental, social, and governance impacts using standardised European Sustainability Reporting Standards.
What is CSRD?
The CSRD (Directive 2022/2464) replaces the Non-Financial Reporting Directive (NFRD) and dramatically expands the scope and quality of sustainability reporting. Companies must report using the European Sustainability Reporting Standards (ESRS), which require a double materiality assessment — reporting both on how sustainability issues affect the company and how the company affects people and the environment.
Who does it apply to?
Following the Omnibus I simplification (Directive 2026/470), CSRD now applies to EU companies with more than 1,000 employees AND more than €450 million net annual turnover. Wave 1 companies (previously under NFRD, 500+ employee public interest entities) are already reporting and must continue. Wave 2 companies meeting the new thresholds must publish their first CSRD report in 2028, covering financial year 2027. Listed SMEs have been removed from mandatory scope. Non-EU companies with more than €450 million EU net turnover and an EU subsidiary or branch generating more than €200 million are in scope from financial year 2028.
Key requirements
Companies must conduct a double materiality assessment, report across ESRS standards covering environment (E1-E5), social (S1-S4), and governance (G1), obtain third-party assurance on their sustainability reports, and include sustainability information in their management reports.