Corporate Sustainability Reporting Directive

The European Union’s sustainability reporting framework


Corporate Sustainability Reporting Directive (CSRD)

The CSRD requires more European companies to comply with standards that will improve the reliability and comparability of companies’ ESG impact. Based on the existing sustainability reporting standards, the European Financial Reporting Advisory Group (EFRAG) compiles these standards.  

The main objective of the CSRD is to mitigate the shortcomings of the NFRD. The European Commission enlarged the scope to include approximately 49,000 companies that match 2 out of 3 of the below characteristics: 

These characteristics cover >75% of the total EU companies’ turnover. These companies will be required to comply with the CSRD by 2024 (Fiscal Year 2023). It is worth noting that small and medium listed companies that do not match the above criteria get an extra three years to comply.  

Regarding reporting requirements of the CSRD, those brought forward by the NFRD will be amended. In addition to the NFRD, the following topics are introduced: 

In addition, it will be required to format and publish sustainability reports using the European Single Electronic Format (ESEF/XHTML), data tags, and advanced databases.  

When do you need to be CSRD compliant?

 It was planned to be effective from 2024, reporting on Fiscal Year 2023. However, the European Council proposed delaying it to start in 2025, with different phases for specific companies.  

In addition, a new deadline for reasonable assurance is requested to only be effective from 6 years after their starting point in complying with CSRD. E.g., when you start in 2026, the reasonable assurance would begin in 2032. We illustrate this timeline in the below figure:

Learn more

about ESG Reporting Regulations
Corporate Sustainability Reporting Directive (CSRD)
The Roadmap to the Corporate Sustainability Reporting Directive 
ESG Webinar Series – Webinar 3 -Corporate Sustainability Reporting Directive
ESG Webinar Series- Webinar 4 – ESG Reporting: Why the Urgency?
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Rutger de Roo van Alderwerelt
Senior Consultant