More detailed reporting for climate and environmental impact will soon be required for around 50,000 companies across the EU, and in some cases beyond, with the aim being to help consumers and investors make more sustainable choices.
The Corporate Sustainability Reporting Directive (CSRD) is a new EU regulation that aims to increase corporate transparency and accountability on environmental, social, and governance (ESG) matters. It was adopted by the European Commission in November 2022 and is set to replace and build on the Non-Financial Reporting Directive (NFRD).
Who does it impact?
Companies that meet two out of three of the conditions below will need to comply with the CSRD:
- €40 million in net turnover
- €20 million in assets
- 250 or more employees
Plus, any non-EU companies with a turnover of more than €150 million within the EU must also comply.